What is Zero VAT on Solar?
The 0% VAT rate applied to residential solar panel installations in the UK since April 2022.
Quick Answer
The UK introduced 0% VAT on residential solar panel installations in April 2022, reducing costs by 20% (the standard VAT rate). The zero VAT rate applies to supply and installation of solar PV panels, batteries, and other energy-saving materials on homes. This applies until March 2027, after which it is expected to be extended. Combined with the SEG, UK homeowners benefit from multiple financial incentives.
Fact-checked by John Rooney, Solar Energy Editor. Editorial policy
Zero VAT on Solar Explained
Zero VAT on solar refers to the application of a 0% Value Added Tax rate to the supply and installation of solar panels on residential properties. This reduces the cost of solar installations by removing the standard VAT charge that would otherwise apply. The zero VAT rate is part of government policy to encourage renewable energy adoption by making solar more affordable for homeowners.
How Does Zero VAT on Solar Work in the UK?
The UK introduced 0% VAT on residential solar panel installations in April 2022, reducing costs by 20% (the standard VAT rate). The zero VAT rate applies to supply and installation of solar PV panels, batteries, and other energy-saving materials on homes. This applies until March 2027, after which it is expected to be extended. Combined with the SEG, UK homeowners benefit from multiple financial incentives.
Frequently Asked Questions
Is VAT charged on solar panels in the UK?
No. Since April 2022, residential solar panel installations in the UK have 0% VAT. This applies to both the panels and the installation labour.
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John Rooney is the founder of Solar Info and has been covering the UK solar energy market since 2023. He fact-checks all content against official MCS and Ofgem data and maintains relationships with MCS-certified installers across the UK.