VAT on photovoltaic panel brackets

Are solar panels subject to VAT?

For residential properties, installing solar panels is subject to a 0% VAT charge. However, it's important to note that the VAT reduction only applies if you're having the solar panels installed by a professional.

What is 0% VAT on solar panels?

The 0% VAT on solar panels in the UK is a temporary measure, set to last until 31 March 2027. From 1 April 2027 onwards, the VAT rate on solar panel supplies will go back to the reduced rate of 5%, in line with the UK government's financial and renewable energy goals. Does 0% VAT apply to solar batteries?

Will VAT be scrapped for solar panels?

Regarding domestic solar panels, the scrapping of VAT and other solar panel grants, such as the Smart Export Guarantee, is expected to help bear the installation cost of solar panels, which many UK households find very expensive. For residential properties, installing solar panels is subject to a 0% VAT charge.

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.

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.

Are solar panels tax deductible in the UK?

According to the UK government's list of Energy Saving Measures (ESMs), most solar photovoltaic (PV) panels installed on residential properties in Scotland, England and Wales (plus Northern Ireland, as of 1 May 2023) are exempt from VAT, meaning there’s no VAT included in the purchase and installation costs.