0% VAT on Solar Batteries: Why Now Is The Time To Install a Solar Battery
As of 1st February 2024, the UK Government has exempted installing solar battery storage (battery energy storage systems, or BESS) as part of your solar PV system from VAT. While the legislation covers a range of different Energy Saving Materials (ESMs), it’s solar batteries that promise big potential savings to customers, both in terms of the efficiency of the system and the initial purchase. What’s more, the legislation applies to both new instals and retrofits.Find out about solar batteries and how you can benefit from 0% VAT on install, or contact us today.
Why Consider a Solar Battery?
Adding a battery, either retrospectively or as part of the installation of your solar PV system is a great way to ensure you maximise usage of the energy you generate. Solar panels generate peak power during the daytime, but most households have a peak power consumption at night. This means that a lot of homeowners still need to use energy from the grid.
Installing a solar battery stores this energy for use at night when you need it most. This means you further reduce your energy bills, as well as your carbon footprint.
What Are The Benefits of Solar Batteries?
There are several benefits to installing a battery as part of your solar PV system, such as:
- Reduced energy bills
- Ability to charge batteries at a cheaper rate overnight, or lower generation periods such as during the winter
- Maximising the efficiency of your solar PV system
- Less dependence on the energy grid
- More insulated from energy price rises
What’s more, installing a solar battery can provide you with greater resilience and redundancy in the event of power cuts, such as those caused by bad weather by installing an emergency backup unit. This is especially important for those who may have medical equipment, fish ponds or business-critical appliances that require a reliable power source.
Who Can Install a Solar Battery?
Certified Tesla Powerwall and Solar Edge battery installers in Sussex
Anyone! Any solar PV system can have a solar battery installed, either as part of the system, or retroactively, and the new 0% VAT scheme will still apply.
There are different types of batteries that can be used in a solar PV system, but we recommend lithium-ion ones. These solar batteries are the most popular because of their high energy density, low maintenance requirements, and longer lifespan compared to other types of batteries. These are also the most readily-available, offering you the widest choice to suit your needs and budget.
We will come and assess your installation to determine the type of battery required, based on your needs, and talk you through the options. There are no minimum requirements as such, you just need to have a solar system that generates enough electricity, and the physical space in the property to place the battery itself.
Solar Battery Considerations
When choosing a battery, it's important to consider factors such as the size of the system and how much power it can generate, your energy requirements, and your budget. Don’t worry though, we’ve installed many solar batteries to systems across Sussex and the South East, and can guide you through the process.
We're delighted to announce we're now certified Tesla Powerwall Solar Battery installers. Find out more below.
0% VAT on Solar Batteries: FAQs
Who is eligible?
Homeowners and businesses in England, Wales, and Scotland can take advantage of the 0% VAT rate on solar battery installations. This applies to both new installations and retrofits to existing solar PV systems. There is no minimum capacity requirement for the battery system.
What are the requirements?
The battery must be installed by a MCS battery certified installer like Savent Solar. The battery must also be used to store electricity generated by your solar panels, and installation must take place in a residential or commercial property.
What are the stipulations?
The 0% VAT rate only applies to the supply and installation of the battery system. The standard VAT rate (currently 20%) will still apply to any additional products or services purchased, such as monitoring systems or battery upgrades.
The scheme is set to run until March 31st, 2027.Are any other items available with VAT Relief?
Yes! The 0% VAT scheme also applies to solar immersion diverters which can also be retrofitted to any system, or included as part of any new install.
Other items include controls for central heating and hot water systems, draught stripping, insulation, solar panels, wind turbines, water turbines, ground source heat pumps, air & water source heat pumps, micro combined heat and power units, wood-fuelled boilers and smart diverters.
Make the most of the 0% VAT on solar batteries
Contact us today to find out about our solar battery installation in the South East. We install solar PV systems across East and West Sussex.