Are solar and energy storage installations subject to VAT?

All solar and energy storage installations, including maintenance to existing sites, should be subject to 0% VAT. This should include residential energy storage when installed as a standalone measure.

Should a solar PV system be a mainly-export installation?

Solar Energy UK is actively lobbying for reform on this issue. However, by setting up solar installations under a Special Purpose Vehicle and providing a PPA to agree to export and ‘sell’ the electricity to the on-site ‘consumer’, the solar PV system should face a Business Rates valuation as a mainly-export installation.

What is the VAT rate on solar?

VAT on a range of domestic energy efficiency and renewable energy installations, including solar, is now 0% in Great Britain. This is a reduction from the previous rate of between 5% and 20% Eligible installations are those included on the Government’s list of Energy Saving Measures (ESMs).

What is photovoltaic and battery storage?

The integration of photovoltaic and battery storage means that self-produced and stored energy can be consumed while reducing peaks in consumption that have a significant impact on the costs of energy supply.

Are solar thermal and PV systems subject to VAT?

Solar thermal and PV systems are included on the list of ESMs. Their supply and installation are now subject to 0% VAT in Great Britain. In Northern Ireland, the previous rules remain in force. This means that solar is subject to 20% VAT unless a reduced rate of 5% applies.

Why should businesses invest in battery storage & solar?

Businesses that rely entirely on grid electricity are at the mercy of the energy market. When energy prices rise, their operating costs go up, which can have a significant impact on their profitability. By investing in battery storage and solar systems, businesses can generate their own electricity and reduce their reliance on the grid.