VAT relief

VAT on solar panels: 0% for homes until 31 March 2027

Solar panels installed in homes currently carry no VAT. The relief has an end date in law, so it is a genuine reason to check timings, not a sales line. Here is what qualifies and how it should look on your quote.

Figures checked 15 October 2026 Sources listed at the end Independent guide, not an installer or manufacturer

The rule

PeriodVAT on installing solar in a home
1 May 2023 to 31 March 20270% (VAT Notice 708/6)
From 1 April 2027Due 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.

Questions buyers ask

Is there VAT on solar panels in the UK?

For solar panels supplied and installed in a home, VAT is 0% from 1 May 2023 to 31 March 2027 under VAT Notice 708/6. From 1 April 2027 it is due to return to 5%.

Does the zero rate apply if I buy panels and fit them myself?

The relief is for installation of energy-saving materials in residential accommodation, which means the supplier must also install. Buying panels alone, without installation, generally does not qualify. Check the GOV.UK notice for your situation.

Does the zero rate apply to batteries?

The GOV.UK notice sets out which energy-saving materials qualify and when. Battery treatment has been subject to specific rules, so ask your installer to show the VAT basis on the quote and check the current notice.

Is this the same as zero-rating on new homes?

No. Solar fitted during the construction of a new home falls under a separate, permanent zero-rating (VAT Notice 708). The retrofit relief in Notice 708/6 is the one due to change on 1 April 2027.

Sources for this page

  1. GOV.UK, VAT on energy-saving materials and heating equipment (Notice 708/6) (read 15 October 2026)

Read on 15 October 2026 unless the line says otherwise. Manufacturer details are what each company says about itself; where we could not confirm something, the page says so. If a figure here disagrees with the primary source, the primary source is right. Tell us through the form and we will correct it.

A question about VAT on your quote?

Your enquiry comes to SEO-DONS LTD, the publisher of this guide, and we reply by email. When you get quotes, ask each installer to show the VAT rate and basis.

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