UK Government Introduces 0% VAT on Battery Storage Systems
When Does the new VAT Exemption for Battery Storage Begin?
What Types of Battery Storage Installations Qualify for VAT Exemption?
Standalone Battery Storage Systems:
Homeowners looking to install only battery storage without solar panels or another renewable energy supply will also benefit from a 0% VAT exemption. Battery storage systems offer advantages such as leveraging time-of-use tariffs, reducing energy costs, taking advantage of peak export rates and providing energy security during grid failures.
Retrofit Battery Installations:
Homeowners with existing solar panel systems seeking to retrofit a solar battery will also receive a VAT exemption on their installation. Retrofitting batteries to existing systems, including wind and water turbines, provides benefits such as storing excess energy for use during periods of low generation, reducing reliance on the grid, enhancing energy independence, and decreasing the carbon footprint. This approach can result in significant savings—up to 90%—on energy bills by maximising self-consumption through a combined battery storage and solar panel installation.
Should you invest in a solar battery storage system?
Prior to the VAT exemption solar battery storage systems were a great investment for homeowners. Now, with the 20% reduction in cost, they are an even more attractive option to save money for years to come. If you’re interested in a quote for a solar battery storage system, get in touch!