VAT on Home Batteries: 0% Until 31 March 2027
Quick answerHome batteries installed in a residential property are zero-rated for VAT until 31 March 2027. That includes batteries added to existing solar and standalone batteries with no panels. From 1 April 2027 the rate is due to become 5%, so the same installed system would cost about 5% more.
Last updated: 30 October 2026 · Reviewed by the Scottish Energy Efficiency team
Installed home batteries currently carry no VAT at all, whether they are fitted with solar, added to existing panels or installed on their own. That relief has an end date. This page explains what qualifies, what changes on 1 April 2027 and what it means for the price you pay.
Is there VAT on home batteries in 2026?
No. Batteries installed in homes are zero-rated as energy-saving materials until 31 March 2027, so a quote for an installed battery should show 0% VAT. The relief covers the battery, the installation work and closely related equipment such as the inverter supplied and fitted by the same installer as part of one job.
Does 0% VAT apply to retrofits and standalone batteries?
Yes. Since 1 February 2024 the zero rate covers batteries retrofitted to existing solar panels and batteries installed on their own, not only batteries fitted at the same time as new panels. That change was made by the Value Added Tax (Installation of Energy-Saving Materials) Order 2024, SI 2024/24.
- Battery fitted with new solar panels: 0% VAT
- Battery added to existing solar panels: 0% VAT
- Battery with no solar panels: 0% VAT
What happens to VAT on batteries after 31 March 2027?
From 1 April 2027 installed home batteries are due to move from 0% to the 5% reduced rate. On a typical 10kWh system costing £5,500–£7,000 today, that would add roughly £275–£350. What matters is when the installation is carried out, so book your survey early if you want the 0% rate.
| System | At 0% VAT (to 31 March 2027) | At 5% VAT (from 1 April 2027) |
|---|---|---|
| 5kWh battery | £3,500–£4,500 | £3,675–£4,725 |
| 10kWh battery | £5,500–£7,000 | £5,775–£7,350 |
| 13.5kWh battery | £7,500–£9,000 | £7,875–£9,450 |
Typical installed ranges, checked October 2026. 5% figures are the same ranges with 5% added; your quote may differ.
Does buying a battery yourself get 0% VAT?
Usually not. The zero rate applies to energy-saving materials supplied and installed together in a home. A battery bought online without installation is normally charged at the standard 20% rate. Having the battery supplied and fitted as one job by an installer is the way to get the 0% rate.
How do I make sure my quote is at 0% VAT?
Check that the written quote lists VAT at 0% for the battery and installation, and ask whether any separate items, such as electrical upgrades, are charged differently. Agree an installation date before 31 March 2027. We install through MCS-certified partners, who survey your home and confirm the VAT position in writing.
Frequently asked questions
When does 0% VAT on home batteries end?
It is due to end on 31 March 2027. From 1 April 2027 installed home batteries are due to be charged at 5%.
Does 0% VAT apply in Scotland?
Yes. VAT is set UK-wide, so the same zero rate applies to installations in Scotland, England, Wales and Northern Ireland.
Is the inverter included in 0% VAT?
An inverter supplied and fitted with the battery as part of the same installation is normally covered. Your quote should show it.
Can I spread the cost?
Interest-free credit up to £30,000, subject to status.