No. Battery storage installations are 0% VAT until 31 March 2027. This applies to both standalone battery systems and batteries installed alongside solar panels.
What the 0% VAT covers:
- The battery unit itself - The inverter (if a new one is needed) - All installation labour and materials - Any associated electrical work required for the battery installation
How much does it save? — On a £5,000 battery installation, 0% VAT saves you £1,000 compared to the standard 20% rate. On a £10,000 solar and battery package, you save £2,000. This is a significant reduction that brings payback periods forward by 1-2 years.
Is it automatic? — Yes. You do not need to apply for anything. As an MCS-certified installer, Mackie Electrical Services applies the 0% VAT rate automatically on your invoice. There is no paperwork or claims process.
After March 2027 — The government has not yet confirmed whether the 0% rate will be extended beyond 31 March 2027. If you are considering battery storage, installing before this date guarantees you benefit from the reduced rate.
Eligibility — The 0% VAT rate applies to domestic installations only. Commercial battery installations are subject to standard VAT rates, though businesses can typically reclaim VAT.