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Policy · 5 min read

Will the 0% VAT on Solar End? The 2027 Deadline

The 0% VAT on home solar and batteries ends 31 March 2027. Here's what that really means.

Since April 2022, qualifying home solar and battery installations have carried 0% VAT (in Great Britain; Northern Ireland followed in May 2023). Before that they were taxed at the reduced 5% rate — and from 1 April 2027 they're currently set to revert to that same 5% rate. So the 0% window is a real, dated saving, and a genuine reason not to dither.

What's covered today

The 0% rate applies to the supply and installation of qualifying energy-saving materials in residential homes — solar panels and, since 1 February 2024, standalone batteries too. It covers both the kit and the labour, as long as the same firm supplies and fits it (buying equipment alone to fit yourself doesn't qualify).

Why the deadline matters

Unless the government extends it, installs completed from 1 April 2027 carry the 5% reduced rate again rather than 0%. On a typical £7,000 (ex-VAT) system that's about £350 more; on a £12,000 solar-plus-battery job, about £600. Not a fortune — but real, and installer diaries tend to fill up ahead of deadlines like this, so the comfortable window to plan, quote and install is well before the date itself.

Sunny says
This is the legitimate version of urgency — a real, dated policy change, not a fake 'offer ends tonight'. And note it returns to 5%, not 20%, so don't let anyone scare you with a '20% price rise'. Plan ahead, but still compare quotes properly; a rushed bad install costs far more than the VAT you'd save.

The quick version

Common questions

When does the 0% VAT on solar panels end in the UK?

The 0% VAT relief on qualifying residential solar and battery installations is currently scheduled to end on 31 March 2027. From 1 April 2027 the rate reverts to the reduced 5% rate (not the standard 20%), unless the government extends the relief.

How much does 0% VAT save on a solar installation?

These installs were taxed at 5% before April 2022 and are set to return to 5% from 1 April 2027, so acting during the 0% window saves the 5% that comes back — roughly £350 on a typical £7,000 system, or about £600 on a £12,000 solar-plus-battery install. The relief covers both equipment and installation labour when the same firm supplies and fits it.

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