The UK Government announces 0% VAT on Battery Storage Systems...

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Evolve Solar Energy - March 2024

The UK government has, from 1st February 2024 removed VAT on the installation of solar battery storage, where previously the VAT relief was only available for batteries installed at the same time as solar panels.

The updated policy not only covers new combined solar PV and battery storage systems, but now also includes the installation of a standalone battery and retrofitted batteries to an existing solar PV system.

Existing Solar PV Systems

The new rules for VAT on battery storage systems is particularly beneficial for owners of existing solar PV systems allowing the storage of excess solar generated energy to be used in the home or business at a later time. This enhances the efficiency of solar energy usage and plays a crucial role in the broader adoption of renewable energy sources.

Standalone Battery Storage Systems

If you are unable to have solar panels installed at your property you can still take advantage of the 0% VAT incentive on having a storage battery installed. Many electricity suppliers offer time-of-use electricity tariffs which enables time shifting, the ability to store your electricity at a discounted rate overnight, allowing it to be used at a later time when electricity prices are much higher.

Cutting Carbon Emissions

By making renewable technology accessible and affordable for more households the government is able to promote the use of sustainable energy. With the UK’s commitment to reach net zero by 2050 this move couldn’t have come at a better time.

How Long Will the VAT Incentive Last?

The VAT relief on solar PV and battery storage technologies will be available until 31st March 2027 when the threshold is likely to return to a higher, but still reduced VAT of 5%.

There really is no better time to invest in solar energy or a battery storage system. If you are thinking about taking advantage of the new zero VAT incentive then give us a call for more information or to request a quotation. Alternatively, why not use our online contact form and we will reply to you shortly.

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