VAT Solar Batteries

@HMRC Admin 17 Thank you.

If supplied at the same time?? Nit picking aside - delivery even on the same day is verging upon the impossible. In reality, doesn't this translate to appearing upon the same invoice?

Hi,

If it is invoiced as supply and installation under the same contract, it will qualify.

Thank you.

Hello, Can the solar PV/battery storage installation be undertaken by a registered NICEIC electrician? Or to qualify for a zero rated installation is membership of a body such as MCS a requirement?

 

Hi. For VAT purposes there is no requirement for suppliers to be members of any particular bodies to allow a zero rated installation. Thank you.

Hi I am just looking at installing Inverter and 3 x 5.1 KW Battries, I have had 2 x companies that have supplied prices, one includes VAT and the other is zero rated, I am confused could you please let me know if install is Zero rated ?

Hi Paul Morris,

The zero rated relief for energy saving materials is only applicable for the solar panels themselves or for inverter/batteries if installed at the same time as the solar panels as a single supply.
If they are installed on their own then they will be at 20% .

Thank you.
 

So If I install 4 Solar Panels with Inverter and 3 x batteries would this be zero rated Thanks

 

Hi . Yes so if you install the solar panels,inverter and batteries as a single supply and meet the conditions as per 708/6 then this would be zero rated . Thank you.

Is there a minimum solar array size required to constitute an install. For example, could I add a new array, say 1.2kW along with an inverter and battery/batteries (all zero rated VAT) and then connect an existing array to the battery/batteries, via a second (at 20% VAT) AC inverter? Thanks

Also, is there a requirement for this new array/battery install to use a hybrid inverter or can a string inverter be installed (to the consumer unit) and then an AC inverter to the battery/batteries? Thanks

 

Hi. The guidance makes no minimum array size to constitute an install,or whether it should be a hybrid or string inverter. The guidance states: Solar panels include all systems that are installed in, or on the site of, a building and that are: solar collectors such as evacuated tube or flat plate systems, together with associated pipework and equipment, such as circulation systems, pump, storage cylinder, control panel and heat exchanger photovoltaic (PV) panels with cabling, control panel and AC/DC inverter Please see link below: Energy-saving materials and heating equipment (VAT Notice 708/6) . Thank you.

In the next month I'm having an Air source heat pump installed. I already have PV panels installed some years ago. If I were to have battery storage installed at the same time as the air source heat pump would this also be zero VAT rated? Thanks

Hi. The battery storage can anly be zero rated if it is installed as the same time as solar panels as a single supply . Thank you.

We are are solar installers and we are having difficulty with stock availability at the moment so items are not all installed at the same time, but are usually part of the "same contract". Evolving from this situation I have a question on storage batteries. We supply 2 types of storage battery:- 1. One type is DC coupled on the PV side of the inverter and can only be charged from the solar system, this then will supply energy to the household. 2. Another type is AC coupled, connected on the AC, grid, side of the inverter and can be also charged from the grid after necessary programming. Questions requiring clarification:- The first type is installed and is part of the solar PV system and the energy stored from the solar is supplied through the solar inverter so it cannot be considered as a standalone product. Also this may be added later to make more use of the renewable energy. Does this allow it to be 0% VAT? The second type is usually charged from the solar but can also be charged from the grid which does help to spread the load on the grid. It can be programmed to charge from solar only. Whilst this is part of the solar system it can be a standalone storage battery.

Hi. If you are installing either type of battery as a single supply along with solar panels then this should be charged at the zero rate of vat. If either battery is installed separately to the solar panels and not as a single supply with the panels then it will be treated as a supply of non energy saving materials and so charged at 20% vat.

Thank you.

Hello and thank you so far. The install of the battery and solar are part of the same contract, the complete job, but often not installed at the same date. For example in these difficult times, this week we have batteries but no solar panels until August, so we are fitting batteries and invoicing a stage payment. We will fit the panels when they arrive and issue a completed final job invoice. I assume this will be at 0% VAT. In August I expect it will be the other way round. Please confirm that being in the original contract this meets the VAT requirements.

 

Hi. The key element is that the whole system is being installed as a single supply in order to qualify for the zero rate of vat,the nature of the single supply should  be indicated in the contract etc with the customer  . Thank you.

Hi We placed an “order” for solar panels, inverter and a battery in February. The solar panels and inverter were installed on 30/3 and then the battery was fitted on 1/7 due to the shortage of batteries. We paid a deposit in February and then a second payment in March. The final payment is now due but we have been charged 5% VAT. Can we ask that this is changed at least for the battery as the job was not completed until 1/7?

Hello, Please refer your supplier to section 30.7.4 : VAT guide (VAT Notice 700)    . Thank you.