VAT on solar panels and batteries
For a qualifying home installation, the installer normally charges 0% VAT on the quote and invoice until 31 March 2027. You do not usually need to pay VAT first and claim it back.
Which situation applies to you?
An installer is supplying and fitting solar panels
A qualifying residential installation will normally be charged at 0% VAT during the temporary relief. This can include the panels and the cables, controls and inverter needed for them to work. Ask the installer to show the VAT rate on the quote.
I am buying panels or parts without installation
Equipment bought on its own is normally charged at the standard VAT rate. If another business later installs it, the installation service may qualify for relief, but that does not change the VAT already charged by the retailer.
I am adding a battery
Qualifying installed batteries are included in the temporary 0% relief. This can cover a battery fitted with solar panels, added later or used to store electricity from the grid.
The quote includes roof repairs or other building work
Work needed as part of a qualifying solar installation may follow its VAT treatment. Separate or unrelated building work can be treated differently. Ask for an itemised price and an explanation of the rate used for each part.
I am paying for a repair or maintenance visit
Repair and maintenance work does not automatically receive the same relief as a new installation. Ask the repair company to explain the VAT shown on its quote.
The work may finish after March 2027
Under current rules, qualifying installations move to 5% VAT from 1 April 2027. Ask the installer which rate applies to your payments and work, and what the contract says about a change in the rate.
What if the quote shows 20% VAT?
Ask the supplier why it has used that rate. If the work qualifies for a lower rate, ask for a corrected quote or invoice. Buying equipment without installation is one reason the standard rate may apply.
For a mixed or unusual job, ask a qualified tax adviser if the explanation is unclear. HMRC’s guidance sets out the rules.
Questions to ask before you agree
- Does the total price include VAT?
- Which parts of the work qualify for relief?
- Are roof repairs or other extras priced separately?
- How is a battery treated?
- Could the VAT rate change if the work is delayed?
If the offer also includes funding, use our grant checklist. VAT relief and grant funding have different conditions.