Products covered by 0% VAT

The government's VAT relief covers all major renewable energy technologies for your home.

Solar Panels

Photovoltaic (PV) systems for generating electricity from sunlight. Includes panels, inverters, mounting hardware and installation.

Heat Pumps

Air-source and ground-source heat pumps that provide heating and hot water. Highly efficient alternative to gas boilers.

Battery Storage

Standalone battery systems to store solar energy. Since February 2024, batteries also qualify for 0% VAT.

How much could you save?

Typical VAT savings on renewable energy installations across different technologies.

£1,000-£2,500
Typical VAT savings

Solar Panel System

Typical cost: £6,000
VAT at 20%: £1,200
You save: £1,200

Air Source Heat Pump

Typical cost: £10,000
VAT at 20%: £2,000
You save: £2,000

Battery Storage

Typical cost: £5,000
VAT at 20%: £1,000
You save: £1,000

Lock in your savings before 2027

The 0% VAT rate is currently scheduled to end. Here's why acting now makes sense.

Government Confirmed

The Treasury has confirmed 0% VAT on energy-saving materials until 31 January 2027. Installations must be completed before this date.

Future Rates Uncertain

After January 2027, VAT could return to 5% or higher. The current rate is a temporary measure to encourage green home upgrades.

Stack with Other Grants

0% VAT can be combined with ECO4, Boiler Upgrade Scheme, and other grants for maximum savings on your installation.

Energy Prices Rising

With electricity prices fluctuating, generating your own power with solar and storing it in batteries makes more financial sense than ever.

0% VAT questions

Common questions about VAT relief on solar, heat pumps and battery storage.

Typical savings range from £1,000 to £2,500+ depending on the installation. A £6,000 solar panel system saves £1,200 in VAT. A heat pump installation of £10,000 saves £2,000.
Solar photovoltaic (PV) panels, heat pumps (air-source and ground-source), battery storage systems, and related installation costs all qualify for 0% VAT until 2027.
Yes. Since February 2024, standalone battery storage systems (without solar) also qualify for 0% VAT, making them significantly more affordable.
The government has confirmed 0% VAT on energy-saving materials until 31 January 2027. Installations must be completed before this date to qualify.
No application needed. Simply request a quote from a certified installer — they automatically apply 0% VAT to qualifying installations.

Check if you qualify for grants

Combine 0% VAT with ECO4, Boiler Upgrade Scheme and other grants. Check in 60 seconds.

Related Guides

ECO4 Scheme

Free energy improvements for eligible households

Boiler Upgrade Scheme

£7,500 towards heat pumps

Solar Panel Grants

Free solar through ECO4

Check Eligibility

Find out which grants you qualify for in 60 seconds