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Posted Wed, 27 Jul 2022 11:37:02 GMT by
The local electricity supplier - SSE - are adding vat at 20% to their element of new cables, switchgear/whatever in connection with my proposed solar panel installation. As their work is ancillary and mandatory for the system to work, I would have thought it should be zero rated. Thank you.
Posted Wed, 27 Jul 2022 12:46:26 GMT by HMRC Admin 20
Hi Johnp,

Please see the guidance regarding ancillary supplies:

2. Installations of energy-saving materials

The issue that I can see with it being an ancillary supply is that it is not a single job for a single price.

Thank you.
Posted Mon, 08 Aug 2022 14:17:36 GMT by
I paid a deposit for a solar PV system in September last year but only starting having it installed in April this year. Eight panels were installed in April and another seven are waiting for the roof alteration to be ready. None of the wiring and controls have been installed yet. Money is still outstanding to the supplier. I was advised not to have a battery in September as the payback could be longer than the life of it. I am paying 5% VAT on the order due to my timing My question is can I now add the battery to my uncompleted order and have the VAT saving on my half completed order?
Posted Tue, 09 Aug 2022 08:02:05 GMT by HMRC Admin 17


The purchase and installation of the battery for the solar system can only be at the 0% charge of Vat if done at the same time as

the solar panels as a single supply of services  .

Thank you.
Posted Thu, 18 Aug 2022 09:36:38 GMT by
Hi HMRC, The many questions in the post, show that the existing regulation is overly complex, and not really making technical sense. Could HMRC please consider a change to the VAT regulations, to allow fitting a storage battery to properties with an existing solar array (of which there are many in the country) at 0% VAT. This would strongly encourage more storage batteries to be fitted, supporting grid decarbonisation due to load balancing. Even the solar array requirement could be removed (since excess solar being exported during the day to the grid is actually benefiting the peak energy use period). Regards, Steve
Posted Thu, 18 Aug 2022 13:16:06 GMT by HMRC Admin 10
Hello Stevie nelson
This is the current guidance on Energy Saving Materials 708/6, we have not been given any further advice on installation of storage batteries.   Energy-saving materials and heating equipment (VAT Notice 708/6)
Posted Tue, 23 Aug 2022 20:36:42 GMT by
I ordered a solar array and battery back in January, vat was at 5%, contract was signed. The solar panels and grid connection are being undertaken at the end of this month, As the installation is not taken place until after the recent change, my invoice for the array has been reduced by the 5%, so far, so good. But the battery is simply unavailable right now and the original spec one has now been superseded by a newer version. My installer cannot source one, but I may be able to, but only by buying it separately myself and handing to my installer as a free of charge item for them to install. However it is only available at a price plus vat at 20%. If I buy it a full price and have it sent to my installer, can they claim the vat back and reduce my invoice bye the amount I will have paid for the battery? It seems ridiculous that due to supply chain issues, I potentially may have to pay 20 % vat on what should have been a single installation that is held up by a supply chain issue.
Posted Wed, 24 Aug 2022 12:29:05 GMT by HMRC Admin 10
Hi Bill D
If you purchase the battery yourself then you would be charged at 20% for this item.
If your supplier purchases the item and receives the invoice from the battery supplier then he will also be charged Vat at 20% but he would be able to look at reclaiming this if he is vat registered.If the supplier then installs this battery for you on its own then he will have to charge vat at 20%.
He would only be able to supply and install at 0% Vat if he supplied it as a single supply with the solar panels at the same time.
Posted Tue, 13 Sep 2022 17:04:38 GMT by
Hi, If you add additional solar panels and a battery to an existing solar system are the new panels and battery eligible for 0% VAT?
Posted Wed, 14 Sep 2022 15:16:15 GMT by HMRC Admin 20
Hi Brad2022

AS long as the solar panels are added with the battery as a single supply then it can be 0% as long as the conditions are met here:

2. Installations of energy-saving materials

Thank you.

Posted Tue, 27 Sep 2022 15:08:27 GMT by
If a single installation of PV panel/s and battery storage are carried out at the same time, both panels and batteries have a 0% vat rate. But is there a minimum number or value of solar PV panels required in that particular installation? Thank you.
Posted Wed, 28 Sep 2022 07:52:41 GMT by HMRC Admin 17

There is no minimum value or number for the installations of PV panels and batteries.

Please see the guidance below:

Energy-saving materials and heating equipment (VAT Notice 708/6)  .

Thank you.
Posted Wed, 05 Oct 2022 21:04:54 GMT by
Have to agree with other posts the rules on Batteries alone makes little sense as they can store much more off peak electric and reduce pull on grid all year round, where in winter dark nights nullify solar benefit use at peak times. Hypothetically if batteries were installed and along side them one single solar panel was also installed would this installation attract 0% rate?
Posted Fri, 07 Oct 2022 12:10:37 GMT by
Is there a requirement that solar panels supplied by a recognised supplier in conjunction with a (new) storage battery have to be new. Or can the installation include or consist of previously-used panels in order while still qualifying for the 0% VAT rate on the cost of the battery?
Posted Fri, 07 Oct 2022 15:46:33 GMT by
Could you tell me whether I'm entitled to zero vat if purchasing solar equipment from a supplier myself; then arranging for an installer to fit. The suppliers i'm looking at are still charging vat on supply. Thanks
Posted Tue, 11 Oct 2022 14:37:42 GMT by HMRC Admin 17

The installation of batteries on their own are not covered under the 0% rate, the 0% rate will only apply if the solar batteries are installed
at the same time as the panels.

The solar panels do not need to be new panels but they need to be a single supply of panels/battery.

Thank you.
Posted Tue, 11 Oct 2022 16:33:34 GMT by HMRC Admin 10
Hi Lee Jones
If you are buying solar panels yourself then these will be subject to 20% VAT and the installation should be at the zero rate.
The zero rate for energy saving materials doesn't apply to supply only materials only to supply and installation or installation only.
Posted Thu, 13 Oct 2022 12:05:27 GMT by HMRC Admin 19
Hi Herz,

We have checked with our policy team and if an additional solar panel is added to an existing set up with a battery then the solar panel and the battery can be zero rated.

Thank you. 
Posted Wed, 07 Dec 2022 15:23:37 GMT by blueoatgrass Butterworth
Please can you clarify if the following will be zero rated or will part be chargeable to vat A quote was obtained to supply solar panels and a battery An invoice was obtained which gave the total cost of this installation with inverter and various Tigo solar panel controllers.The firm prepared two orders one for solar panels etc and a separated order for the battery . I received a confirmation that both orders would be zero rated Due to supply difficulties the solar panels, inverter and associated equipment were reasonably quickly installed on the residential property but due to availability ,the battery has yet to be installed. I understand it may be several months before the battery will be available for install but when it becomes available it will be supplied and fitted as agreed by the installer The installer has now advised me that they will be required to charge vat on the install of the battery and have issued an invoice to me with zero vat on the solar panels ,inverter etc and full vat on the battery and requested a part payment of the recent invoice as soon as possible . They argue that their system have created two orders even though both were ordered at the same time ( battery and solar panels) Are you of the opinion that if both were ordered at the same time zero vat should be applied and if you agree can you advise me as to how I can convince my supplier that zero vat will apply in these circumstances
Posted Wed, 07 Dec 2022 19:28:09 GMT by
Hi, I am looking to import solar panels, inverter and equipment together with a home energy storage system (lithium batteries) for installation here in the UK. Will this attract 0% VAT on import? Regards

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