The rule
| Period | VAT on installing solar in a home |
|---|---|
| 1 May 2023 to 31 March 2027 | 0% (VAT Notice 708/6) |
| From 1 April 2027 | Due to return to 5% |
What qualifies
- Solar panels installed in residential accommodation, such as your home.
- The supplier must also install: buying equipment without installation generally does not qualify.
- Solar fitted during construction of a new home falls under a different, permanent zero-rating (Notice 708).
The detail sits in the GOV.UK notice; if your circumstances are unusual, check it or take advice.
How it should appear on your quote
A domestic solar quote from an installer who supplies and fits should show VAT at 0%. If a quote adds 20%, ask why before going further. Our quotes checklist includes this line.
The 2027 date
The relief is set to end on 31 March 2027. That is a real date in the legislation, not a sales deadline. If you are planning solar anyway, it is worth knowing which side of it your installation will fall. Don’t let it rush you into a poor quote: a well-chosen system is worth more than the VAT difference.
“VAT on solar is zero forever.” Only for solar fitted while a new home is built. The retrofit relief is due to return to 5% from 1 April 2027.
VAT lowers the cost; the return comes from self-use and export under the Smart Export Guarantee.
Sending an enquiry costs nothing and commits you to nothing.