If you’ve been thinking about installing solar panels, adding battery storage or taking more control over your property’s energy costs, there’s a date worth putting in the diary: 31 March 2027.
The UK Government’s temporary 0% VAT rate on qualifying energy-saving materials is currently due to remain in place until then. Solar panels are covered, and electrical battery storage has also been included in the relief since February 2024.
From 1 April 2027, qualifying installations are scheduled to return to the reduced 5% VAT rate.
That doesn’t mean you should rush into buying a system before the deadline. In fact, the opposite is probably true. The VAT saving is useful, but getting the right energy system for your property matters much more in the long run.
For a high-energy home, farm or estate, the combination of solar generation, battery storage and intelligent energy management can make a real difference to how much electricity you buy, when you buy it and what happens when the grid goes down.
What is 0% VAT on solar panels and battery storage?
The Government introduced a temporary zero-rate of VAT for qualifying energy-saving materials installed in residential accommodation and certain other eligible buildings.
Solar panels are included, while electrical storage batteries were added to the relief from 1 February 2024. So, where the relevant conditions are met, battery storage can currently benefit from 0% VAT too.
The relief is scheduled to run until 31 March 2027, after which qualifying installations are due to return to the reduced 5% VAT rate.
Now → 31 March 2027: 0% VAT
From 1 April 2027: 5% VAT
Do solar batteries qualify for 0% VAT?
Yes, batteries can qualify.
HMRC guidance covers a number of situations, including:
- Batteries retrofitted to store electricity generated by qualifying energy-saving materials such as solar panels
- Standalone batteries that store electricity from the National Grid
- Batteries that store electricity from both renewable generation and the grid
- Batteries installed alongside qualifying solar installations as part of a single supply
There are conditions around the property and installation, though, so the exact VAT treatment can depend on the individual project. Your installer should confirm how the rules apply to your system.
When does 0% VAT on solar end?
The current 0% VAT rate is scheduled to end on 31 March 2027.
From 1 April 2027, qualifying energy-saving material installations are scheduled to return to the reduced rate of 5%.
For someone already considering solar, battery storage or a more complete energy system, that creates a useful window to explore your options while the zero rate is still available.
But there’s an important point here: don’t choose a system just because of the VAT deadline.
A badly sized battery or poorly designed solar system can cost you far more in missed savings over the years than you’ll save on VAT today. The system needs to make sense for how your property actually uses electricity.
How much can 0% VAT on solar and batteries save?
It depends on the size and cost of your installation.
For example, if a qualifying installation costs £20,000 before VAT:
|
VAT rate |
Total cost |
|
0% VAT |
£20,000 |
|
5% VAT |
£21,000 |
That’s a potential £1,000 difference.
On a larger, more complex system, the difference could be greater.
Still, it’s worth looking beyond the initial VAT saving. The bigger financial opportunity comes from what the system can do over its lifetime.
Solar can generate your own electricity. A battery can store excess energy instead of sending it straight back to the grid. And with the right energy management system, you can also charge your battery when electricity is cheaper and use that stored energy when prices are higher.
That’s particularly interesting for properties with high electricity consumption.
£20,000 at 0% VAT | £21,000 at 5% VAT
£1,000 potential saving
Why install solar panels and battery storage together?
Solar panels are great at generating electricity when the sun is out.
The slight problem? That isn’t always when your property needs the most electricity.
You might generate plenty of solar energy during the middle of the day, for example, while your biggest demand comes later in the afternoon and evening. Without battery storage, some of that excess generation may be exported to the grid rather than being available when you actually need it.
A battery changes that.
It gives you somewhere to store surplus electricity so you can use it later.
And the battery doesn’t necessarily have to be charged by solar alone.
OffGrid Pro systems can intelligently manage electricity from the grid as well, allowing batteries to charge when lower-cost tariffs are available and then supplying stored energy during more expensive periods.
In simple terms, it’s about being smarter with when you use electricity, not just how much you generate.
Generate
Store
Use
Generate
Store
Use
How OffGrid Pro’s energy systems work
For a high-energy property, installing solar panels and calling it a day might not be enough.
OffGrid Pro takes a different approach, designing integrated energy systems around how the property actually generates and uses electricity.
At the centre of the system is a high-capacity battery bank, which can store electricity from renewable sources such as solar PV as well as from the grid. Intelligent energy management then controls when electricity is bought, stored and distributed around the property.
Depending on your requirements, an OffGrid Pro system can help you:
- Store electricity when tariffs are at their lowest
- Use stored energy during more expensive periods
- Make better use of electricity generated by solar panels
- Reduce reliance on peak-rate grid electricity
- Integrate existing solar and other renewable technologies
- Provide backup power during grid outages
- Monitor your property’s energy use and system performance
The aim isn’t to sell every property the biggest possible battery or the most solar panels.
It’s to build a system that actually fits the property.
That’s particularly important for large homes, farms, estates and other sites where electricity demand can look very different from that of a typical household.
Case study: reducing an £8,000 electricity bill to effectively £0
One OffGrid Pro installation in Hampshire shows what an integrated system can look like in practice.
The property was using more than 30,000kWh of electricity every year, with demand coming from a swimming pool, hot tub, electric AGA, workshop and electric vehicle.
Its annual electricity bills were around £8,000.
There was another issue too. The rural property experienced frequent power cuts, so the system needed to do more than reduce the electricity bill. Reliable backup power was a major part of the brief.
The OffGrid Pro solution
OffGrid Pro designed a fully integrated Victron Energy system around the property’s specific energy requirements.
The installation included:
- Approximately 20kW of solar PV
- 64kWh of battery storage
- Victron Quattro 48/15000 inverter
- Integration of existing and new solar arrays
- Additional Victron equipment for garage loads
- Bespoke G100 export limitation technology
- WattSwap smart tariff integration with Octopus Energy
- Full Victron Remote Management monitoring
The system automatically balances solar generation, battery storage and grid electricity.
During lower-cost tariff periods, the batteries can charge from the grid. Surplus renewable energy can also be stored, ready to use later. And if the grid goes down, the battery system can provide backup power to the property.
The result
The property’s annual electricity costs were reduced from approximately £8,000 to effectively £0, with export payments creating a credit balance.
It also achieved:
- Whole-home backup during power cuts
- An EPC A rating
- Significantly reduced reliance on expensive grid electricity
- Zero downtime over three years of operation
- An estimated payback period of around three years
Before
~£8,000 annual electricity costs
Regular power cuts
Lower EPC rating
After
effectively £0
Whole-home backup
EPC A
The interesting part of this example is that the solution wasn’t simply “install more solar”.
The property had a lot of different energy demands, so the system needed to manage generation, storage and consumption together. That’s where an integrated approach starts to become much more valuable.
Is now the right time to install solar and battery storage?
If you’ve already been considering a solar and battery installation, the current 0% VAT rate is certainly worth factoring into the numbers.
But the best system isn’t necessarily the one with the most solar panels or the biggest battery.
It’s the one that fits your property.
Before investing, it’s worth looking at:
-
How much electricity your property uses each year
-
When your electricity demand is highest
-
Whether you already have solar panels
-
How much battery storage you actually need
-
Which electricity tariffs are available to you
-
Whether backup power is important to you
-
Whether you have high-energy appliances, an EV, pool, heat pump or outbuildings
-
How your energy requirements might change in the future
For larger properties and high-energy users, intelligent battery storage can offer more than just a way to store solar power. It can help reduce electricity costs, make better use of renewable generation and give you greater resilience when the grid isn’t available.
And with the current 0% VAT rate scheduled to end on 31 March 2027, now is a good time to find out what an integrated energy system could actually do for your property.
Frequently asked questions about 0% VAT on solar
Does battery storage qualify for 0% VAT?
Yes. Electrical storage batteries were added to the energy-saving materials VAT relief from 1 February 2024. Qualifying battery installations can currently benefit from the 0% VAT rate until 31 March 2027.
When does 0% VAT on solar panels end?
The current 0% VAT rate is scheduled to end on 31 March 2027. From 1 April 2027, qualifying installations are scheduled to return to the reduced 5% VAT rate.
Will solar panels be 5% VAT after 2027?
Under the current Government rules, qualifying energy-saving material installations are scheduled to return to the 5% reduced VAT rate from 1 April 2027.
Can I get 0% VAT on a battery without solar panels?
Potentially, yes. HMRC guidance confirms that standalone electrical storage batteries storing electricity from the National Grid can qualify for the relief, provided the relevant conditions are met.
Does 0% VAT apply to solar panels and batteries installed together?
Yes. HMRC guidance specifically covers combined solar panel and battery installations, which can qualify for the temporary zero rate where the relevant conditions are met.
Do I need to apply for 0% VAT?
Generally, there is no separate application for homeowners. Where an installation qualifies, the appropriate VAT treatment is applied by the installer.
Your installer should confirm the VAT treatment that applies to your specific project.
Make the most of your property’s energy
The 0% VAT rate can reduce the upfront cost of a qualifying solar or battery installation. That’s useful.
But the more interesting question is what the system could save you over its lifetime.
For a high-energy property, solar generation, high-capacity battery storage and intelligent energy management can work together to reduce electricity costs, improve energy independence and provide greater protection against power cuts.
OffGrid Pro designs bespoke energy storage and management systems for high-energy homes, farms, estates and other properties across the UK.
If you’re considering solar, battery storage or a complete energy system, find out what could work for your property before the current 0% VAT window closes.