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The 0% VAT rate on domestic solar
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How we are paid. We are paid a fee by installers when we introduce a homeowner who asks for a quote. It does not change your price, and we are not paid more by one installer than another for the same job. In full.
Short answer
Domestic solar installations are zero-rated for VAT until 31 March 2027, after which the rate reverts to 5%. There is nothing to apply for: a compliant installer simply zero-rates the invoice. It applies regardless of income, and since 1 February 2024 it covers batteries too, including a standalone battery retrofitted on its own.
- Current rate
- 0%
- Reverts
- 31 March 2027
- Then
- 5%
- Income test
- None
This is the one piece of UK solar support that applies to everybody, and it is the one people most often do not realise they are already getting.
What it is
Domestic solar installations are zero-rated for VAT until 31 March 2027, after which the rate reverts to 5%.
There is no application, no form and no eligibility test. A compliant installer zero-rates the invoice. If you are looking at a quote for a domestic installation today and it shows VAT, that is a question to ask before you assume it is right.
What it is worth
On a £7,000 installation, the difference between 0% and 5% is around £350.
Which is a reason to be informed, not a reason to rush
£350 is real. It is also roughly a twentieth of the decision, and considerably less than the spread between the cheapest and most expensive of three quotes for the same system.
Rushing into a single quote in February 2027 to beat the deadline is a reliable way to spend more than £350 more than you needed to. Get three quotes, then let the timing fall where it falls.
What it covers
- The supply and installation of the solar system on a domestic property.
- Batteries, since 1 February 2024: including a standalone battery retrofitted to an existing system, and one charged from the grid rather than from your own panels. This is a point that is often reported incorrectly.
- Related energy-saving materials fitted as part of the same works.
What it does not cover
- Commercial installations. Standard-rated, though a VAT-registered business recovers it in the normal way.
- Plug-in solar kits. These are goods you buy, not an installation.
- Anything outside a residential property, or work that is not the installation of a qualifying energy-saving material.
Why it exists on a clock
The zero rate was introduced as a temporary relief with an end date, and that end date has not moved. Reverting to 5% still leaves solar treated far more favourably than the 20% standard rate.
It is worth understanding the shape of the UK solar deadline landscape as a whole, because there are three live ones and they are all different:
| Deadline | What happens | When | | --- | --- | --- | | ECO4 closes | The supplier obligation ends; no ECO5 | 31 December 2026 | | 0% VAT reverts to 5% | Roughly £350 on a £7,000 job | 31 March 2027 |
The first changes whether you can get help. The second changes the price by a few per cent.
That distinction gets blurred constantly by pages that lump all three into one urgency message. The funding tracker keeps them separate, dated, and tied to the government publication that sets each one.
What to do
- Check your quote shows no VAT on a domestic installation. If it does, ask why.
- If you are adding a battery, fitting it at the same time as the panels is cleaner for VAT as well as cheaper for scaffolding.
- Do not let the March 2027 date compress a decision that deserves three quotes.
- Model your own numbers before you talk to anyone.
Common questions
Do I have to apply for the 0% rate?
Does it cover batteries?
Is it worth rushing to beat March 2027?
Does it apply to commercial installations?
Does it apply in Northern Ireland?
Sources
Checked 2026-09-02. Rates, rules and eligibility can change. Confirm current terms before signing a contract or applying for funding.
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