UK households installing a home battery — alongside solar or standalone — currently pay zero VAT on both the equipment and the installation. The relief is scheduled to run until 31 March 2027, then revert to 5%. Plain-English explainer, no fluff.
Battery storage installed in a UK residential property is zero-rated for VAT until 31 March 2027. The 0% rate applies to both the battery itself and the installation labour, billed in a single supply by your installer. You don't apply for anything — your installer just doesn't charge VAT on the invoice.
The relief was originally introduced for batteries paired with other energy-saving materials (most commonly solar PV) in April 2022. It was extended on 1 February 2024 to cover standalone batteries — you no longer need to install solar at the same time. Retrofit batteries on existing solar installations also qualify.
After 31 March 2027 the rate is scheduled to revert to 5% (the reduced rate), unless extended by future legislation. If timing matters to you, completing your install before March 2027 locks in the 0% rate at the point of supply.
VAT relief sounds abstract — here's what it's worth in pounds.
| Battery + installation (ex-VAT) | £X,XXX |
| If charged at standard rate (20% VAT) | £X,XXX × 1.20 |
| If charged at reduced rate (5% VAT, post-2027) | £X,XXX × 1.05 |
| Current rate (0% VAT, until March 2027) | £X,XXX × 1.00 |
We can't publish a specific £ saving here without committing to a specific install cost — but a typical mid-sized home install today versus the same install at the 20% standard rate is a four-figure VAT saving. Our quotes are inclusive of 0% VAT applied automatically.
The 0% rate is one of the reasons UK home battery economics work out better in 2026 than they have in any previous year. Even ignoring tariff savings, payback periods are 5–7 years on standard usage, partly because there's no VAT inflation on the upfront cost.
You qualify for 0% VAT if:
You do NOT qualify (standard 20% VAT applies) if:
Special cases:
Not at the moment. Battery storage installed in UK residential accommodation is zero-rated for VAT — 0% VAT on both the battery and the installation labour. This applies until 31 March 2027 under current legislation.
Yes. From 1 February 2024, standalone batteries are zero-rated — you don't need to install solar at the same time. Before that date the relief only covered batteries installed alongside other energy-saving materials.
Treated the same as standalone since 1 February 2024 — both qualify for the 0% rate. There's no requirement for solar to be installed in the same job.
Both. The zero-rate covers the supply of the battery and the installation labour in a single supply to the customer. Your installer applies 0% VAT on the whole invoice — no separate application required.
Under current legislation, the zero rate expires on 31 March 2027, after which the reduced rate of 5% applies. Future governments may extend or modify. If timing matters and you want the 0% rate, complete the install before March 2027.
No. The zero-rate is for residential accommodation only. Commercial installations are charged at the standard 20% VAT rate. Most commercial buyers are VAT-registered and reclaim this through normal VAT accounting, so the cash impact is usually neutral.
The 0% VAT relief still applies — it's a tax matter, not a planning matter. Listed-building consent or planning permission for the install itself may be required separately (typically minimal for indoor units), and we'll cover that during your free survey.
No — there's nothing to claim. The relief works at the point of supply: your installer simply doesn't charge VAT on the invoice. There's no form, no certificate, and no application. The saving is built into the price.
Every Energy2 quote includes 0% VAT automatically while the relief applies. Free survey, no obligation.