0% VAT on Green Energy

What is the 0% VAT relief? An overview of the UK government policy that reduces VAT from 20% to 0% on solar panels, batteries, heat pumps and other energy-saving materials installed in residential properties. Which products qualify? The full list of products and materials that qualify for 0% VAT, including solar panels, inverters, batteries, heat […]

What is the 0% VAT relief?

An overview of the UK government policy that reduces VAT from 20% to 0% on solar panels, batteries, heat pumps and other energy-saving materials installed in residential properties.

Which products qualify?

The full list of products and materials that qualify for 0% VAT, including solar panels, inverters, batteries, heat pumps, insulation, heat pump hot water cylinders and EV chargers.

Who can claim 0% VAT?

Which property types and homeowners qualify, the rules for new builds versus existing homes, and whether landlords, housing associations and self-builders are included.

How the saving is applied

How the 0% VAT saving appears on your installation quote, whether you need to do anything to claim it and what your installer should show on the invoice.

How much does it save?

Real examples of how much 0% VAT saves on typical solar, battery and heat pump installations, and how it stacks with the BUS grant and other funding.

How long does the 0% VAT last?

The current end date for the 0% VAT relief (March 2027), whether it is likely to be extended, and what rate will apply if it reverts.

0% VAT on batteries & storage

Specific rules for claiming 0% VAT on home battery systems, whether the battery must be paired with solar and how standalone storage qualifies.

0% VAT on heat pumps

How 0% VAT applies to air-source and ground-source heat pump installations, and how it combines with the £7,500 BUS grant for maximum savings.

What does not qualify?

Products and scenarios that do not qualify for 0% VAT, including gas boilers, air conditioning used only for cooling, and materials supplied without installation.

Frequently asked questions

Common questions about 0% VAT on green energy products, including DIY installations, retrospective claims, mixed-use properties and what happens at the end of the relief period.