Are Solar Batteries VAT Free In The UK?

Last Updated on June 9, 2025

With rising energy costs and growing interest in energy independence, more UK homeowners and landlords are turning to solar battery storage. And thanks to recent government changes, there’s even more reason to invest. 

As of 2024, solar batteries are VAT free when installed in residential properties — whether added to an existing system or as part of a new solar setup. This update significantly lowers installation costs and speeds up your return on investment. 

In this guide, we’ll break down what the VAT exemption means, who qualifies, and how to take full advantage of the savings.

Do You Have to Pay VAT on Solar Battery Storage in the UK?

The simple answer? Not anymore, in most cases, solar batteries are VAT free. This change has transformed how UK homeowners and landlords invest in energy storage, significantly reducing upfront installation costs and improving the payback period of solar setups.

Understanding the VAT Exemption for Solar Batteries

In 2022, the UK Government announced a zero VAT rate for energy-saving materials, including solar batteries, solar panels, and heat pumps. Initially, this applied only when solar batteries were installed at the same time as solar panels. 

However, in February 2024, the government extended the zero VAT rate to stand-alone battery installations too.

So, whether you’re adding a battery to your existing solar system, or installing a brand-new solar and battery package, you’ll likely pay 0% VAT.

This change applies to domestic properties only in Great Britain. Unfortunately, commercial buildings in the UK may still be subject to the standard 20% VAT, unless part of a broader decarbonisation scheme.

Who Qualifies for the VAT-Free Solar Battery Installation?

If you’re a homeowner or landlord in the UK, there’s good news: you’re likely eligible to take advantage of the 0% VAT rate on solar battery installations, as long as a few key conditions are met.

To qualify for the VAT exemption, your solar battery installation must:

Be for a residential property (such as a house, flat, or apartment used as a home — not commercial premises)

Be carried out by a registered installer, such as one certified under the Microgeneration Certification Scheme (MCS)

This applies whether you’re:

• Installing a solar battery at the same time as your solar panels, or
  
• Retrofitting a solar battery onto an existing solar PV system

Note: The VAT relief does not apply to DIY installations or those done by unregistered tradespeople. Using a certified installer is essential to access the 0% VAT benefit.

The exemption applies across England, Scotland, and Wales.

This change makes it significantly easier and more affordable for residential property owners to invest in energy storage, cut electricity bills, and improve EPC ratings, especially relevant for landlords navigating increasingly strict energy performance standards.

Why This Matters: Financial Benefits for UK Property Owners

This tax change makes solar battery storage more accessible and cost-effective for homeowners and landlords. In fact, the average solar battery costs are already decreasing, pair that with the 0% VAT, and the savings can be substantial.

Solar batteries can help:

• Reduce reliance on the National Grid
  
• Store excess solar energy generated during the day
  
• Increase independence from rising energy bills
  
• Improve EPC ratings for landlords (which is increasingly valuable with new rental regulations)

With many asking “are solar batteries worth it?“, the VAT savings tip the balance further in favour of “yes.”

What About Commercial Buildings – Are They Included?

Unfortunately, commercial properties are not currently eligible for VAT exemption on solar batteries, unless part of a broader energy-efficiency improvement initiative. If you manage commercial buildings, it’s worth consulting an installer to explore corporate tax relief or other incentive schemes available to you.

Maximise the Benefits of VAT-Free Solar Batteries

Taking advantage of the 0% VAT relief is only part of the equation. To get the most value from your solar battery investment, it’s important to consider how your system fits into your broader energy usage, home layout, and future goals. 

Here’s how UK homeowners and landlords can truly maximise the benefits:

1. Combine Storage with Time-of-Use Tariffs

Pairing your solar battery with time-of-use energy tariffs allows you to charge the battery when electricity prices are at their lowest (typically overnight) and use that stored energy during peak, high-cost hours. 

This smart strategy significantly increases your savings, especially in households with variable energy usage patterns.

If you’re wondering whether this setup can meaningfully reduce your reliance on the grid, you’ll find our article on how long can a solar battery power a house helpful.

2. Understand Your Usage and Battery Sizing

To avoid under- or over-spending, it’s crucial to install a battery that aligns with your actual energy needs. Factors like your average daily electricity consumption, panel capacity, and how much backup power you want will all influence the ideal battery size.

Not sure where to begin? Our guide on what size solar battery you will need will walk you through the key considerations.

3. Consider Safety and Sound Levels

For many homeowners and landlords, safety is a top concern when introducing new electrical systems into a property, and rightly so. Fortunately, modern solar batteries are built to meet strict safety regulations, and when installed by certified professionals, they pose minimal risk.

If you’re unsure about their safety credentials or want to know how they behave in different environments, our in-depth guide on whether solar batteries are safe can help put your mind at ease.

Another common concern is noise, particularly in smaller homes or rental properties where batteries might be installed near living areas. While most systems operate quietly, it’s worth knowing what to expect. You can find out more about typical sound levels and what influences them in our post on whether solar batteries make a noise.

4. Think About Long-Term Performance

Solar batteries won’t last forever, but when you choose the right system and maintain it properly, you can expect years of reliable performance. Understanding how long a battery typically lasts helps you plan for the long term, set realistic return-on-investment expectations, and avoid surprises down the line. 

If you’re unsure what lifespan you should anticipate, we’ve broken it all down in our guide on how long solar batteries last, including factors that can extend or reduce their usable life.

Do Solar Batteries Qualify for Other Financial Incentives?

While VAT exemption is a major saving, you may also want to explore:

• SEG (Smart Export Guarantee) payments
  
• Local grant schemes in Scotland and Wales
  
• Energy bill savings through battery optimisation

And if you’re trying to calculate long-term ROI, our guide “how long until solar panels pay for themselves?” is a must-read.

Choosing the Right Solar Battery for Your Property

There are many types of solar batteries, from lithium-ion to flow batteries. Each comes with different storage capacities, cycle lifespans, and costs.

Understanding these differences is key if you want to know “how many storage batteries are needed to power a house?“

Additionally, if you’re asking, “can you run solar panels without batteries?“, the answer is yes, but you miss out on the full benefit of energy independence.

What If There’s a Power Outage?

It’s a common misconception that solar panels alone will keep your home running during a power cut. In reality, without a battery, most solar panel systems shut down during an outage to protect utility workers repairing the grid. That’s where solar batteries come in. 

They can keep essential appliances running when the grid goes down. If you’re wondering exactly how this works, take a look at our guide on whether solar batteries work during a power outage, where we explain what you can realistically expect during a blackout.

Ready to Claim Your VAT-Free Solar Battery?

Request Your Free Solar Battery Quote from Eco Happy Today

Installing a solar battery storage system has never been more affordable or beneficial. With 0% VAT, increasing energy prices, and greater pressure on landlords to improve energy efficiency, there’s never been a better time to take the next step.

Whether you’re a homeowner looking to cut bills or a landlord improving a rental property’s EPC rating, Eco Happy can help.

Request your free solar battery quote now, and take the first step toward smarter, more sustainable energy.