0% VAT on solar panels extended to 31 March 2027

What qualifies for 0% VAT on solar?

Solar panels, battery storage, heat pumps and insulation installed in a dwelling by an approved contractor qualify for 0% VAT.

The zero rate applies to the supply and installation of energy-saving materials in residential properties. This includes solar photovoltaic panels, battery storage systems, heat pumps, insulation and heating controls. The property must be used solely as a dwelling, and the installation must be carried out by an approved contractor.

Source: HMRC VAT Notice 708/6, updated March 2026. The original temporary zero rate was introduced in the Energy (Relief) (Value Added Tax) Order 2022.

What does the VAT extension mean for Glasgow homeowners?

Install before 31 March 2027 and the installer simply does not charge VAT — there is nothing to claim back.

If you install solar panels, a battery or a heat pump before 31 March 2027, the entire supply-and-install cost is zero-rated for VAT. There is no need to claim anything back — the installer simply does not charge VAT. After this date the rate may revert to 5% or 20% depending on the government’s decision, which has not yet been announced.

How does 0% VAT affect the price on my quote?

No VAT is added to the qualifying supply and installation, so the price on your written quote is the price you pay.

Before April 2022, a reduced 5% rate applied to many energy-saving installations; the standard rate is 20%. While the zero rate lasts, VAT is not added to qualifying work. Your written quote shows the full price after a survey of your home. Finance available, subject to status.