How much VAT will I pay on solar panels in the UK?

0%. Under HMRC VAT Notice 708/6, the installation of solar panels, battery storage and heat pumps at a UK home currently carries a 0% VAT rate, covering both equipment and labour. This relief is confirmed until 31 March 2027, after which the rate is due to revert to 5% unless the government extends it.

Am I eligible for a grant towards solar panels, or just the VAT relief?

Most homeowners don't qualify for a direct grant towards solar panels — 0% VAT is the main benefit available to everyone. However, if you're on certain benefits or have a low household income, you may qualify for a fully funded installation through ECO4 (running until 31 December 2026) or the Warm Homes Plan, now the government's main successor funding scheme.

Does the 0% VAT rate apply to battery storage as well as solar panels?

Yes. Battery storage was added to the 0% VAT relief in February 2024, whether you install a battery alongside solar panels or add one to an existing system later. The relief covers residential properties only — commercial installations are charged standard VAT, though businesses can usually reclaim it.

UK Solar Grant & VAT Savings Checker

ByChristopher R Churchill Last Updated onJuly 6, 2026 10:03 am