UK Government announces 0% VAT on Battery Storage


Building on Rishi Sunak’s announcement during the 2022 Spring Statement, which saw homeowners gain tax relief on energy-efficient system installations including solar panels, the UK government has now broadened its scope by exempting BESS from its 20% VAT as of February 1st 2024.

The VAT relief will also be extended to cover water-source heat pumps and diverters (a technology that redirects excess power from solar or other renewables to a specific load or appliance).

The reforms will also be permanent, meaning that when the zero-rate aspect of this relief sunsets on March 31st, 2027, the installation of all technologies in scope of this relief will revert to the reduced rate of 5%.

This means the following will be included in the 0% VAT:

-Standalone battery storage: projects in which a battery is fitted without supporting solar.

-Retrofit batteries: Projects in which a battery is retrofitted to an existing solar array.

If you are a UK homeowner looking to take advantage of the no VAT announcements on batteries, immersion diverters and solar panels, get in touch with our team today for a free quote.

Call us today on- 01371 875 222