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Since 1 April 2022, the UK government has applied a 0% VAT rate to solar panel installations on residential properties. From 1 February 2024, that was extended to include standalone battery storage and battery retrofits. The relief is in place until 31 March 2027.
In practical terms: a £13,000 typical solar + battery install today would cost roughly £15,600 if standard 20% VAT applied. That's a saving of around £2,600 — built into every quote, automatically.
The relief covers:
It applies to the whole installed system as a single supply — you don't need to separate out materials from labour.
Unless the government extends the relief (and there's political pressure on both sides to do so), VAT on energy-saving materials returns to 5% reduced rate — and potentially 20% standard rate if the broader relief isn't extended.
That means a £13,000 install in April 2027 could cost £13,650 (at 5%) or £15,600 (at 20%). The smart move, if you're already thinking about solar, is to get it installed before the end of March 2027 to lock in the saving.
No — every TJS Solar quote you receive already has the 0% VAT applied. The price you're quoted is the price you pay. We don't add VAT on top.
For commercial customers, our quotes include VAT separately as standard. Commercial systems may qualify for Annual Investment Allowance (AIA) — meaning the cost can be written off against tax in year one — but that's a separate conversation worth having with your accountant.
The 0% VAT relief, combined with current Smart Export Guarantee rates and a competitive battery market, means right now is one of the best windows we've ever seen to invest in solar. The payback period on a typical UK residential install is currently in the 6-8 year range — and that's before you factor in the further savings from time-of-use tariffs like Octopus Go.
Energy prices aren't going down. Solar generation costs aren't dropping much further. And the VAT clock is ticking.
If you're considering solar — or just want a current quote to see what your savings would look like — get in touch. We cover the North West for residential and the whole UK for commercial, and our quotes are always free, no-pressure, and inclusive of all VAT (when zero-rated).
