Residential solar and battery installation VAT charges

Hi, I am in the process of seeking quotes from local companies to supply and install solar PV & battery in a residential property. I would like to check if my understanding of the VAT exempt status is correct. A local company (VAT registered) will be used to supply and install the equipment. The quote I have received for the panels and inverter seems to be inclusive of VAT (based on a Google search of wholesale suppliers). Am I correct in my understanding that as a customer, I should be paying cost of the solar and battery related supplies net of VAT? Many thanks

The zero rating applies only to the supply AND installation of energy saving materials such as PV/batteries. The contractor will buy materials from wholesaler, those materials will be plus 20% VAT as it's just materials. The contractor then installs those materials to your property - the act of installing those materials should see the whole supply (materials + labour) being zero rated. the contractor can reclaim the VAT they incur when they buy the materials. If your quote is including VAT at 20% then you should challenge the contractor and ask why they have not zero rated their quote. Note, the install of PV/batteries is zero rated, not "exempt", in your post you refer to VAT exempt status, there is no exemption from VAT, VAT is charged but at 0% so when speaking with contractor use the correct language so that there is no ambiguity with them. If you buy materials yourself from a wholesaler, they will be plus 20% VAT.

kanishka6582 .   Hi. If a company is both supplying and installing solar panels and battery as the same time as a single supply then it should benrfit from the relief and would be zero rated for VAT purposes Please see the guidance below: Energy-saving materials and heating equipment (VAT Notice 708/6)  . Thank you.

Hi, I have had solar panels installed on my roof, but due to delays installing a three phase electricity supply, the builder has not been able to install an invertor or connect the panels to the grid. As he is finishing the build he has charged me VAT on the solar panel installation because because it has not been connected or commissioned yet. In VAT Notice 708/6 installation is defined as permanent fixation, which the panels are. As the panels have not yet been commissioned is the builder correct to charge 20% VAT, or should he be charging zero rated VAT because the panels are permanently fixed to the roof? Kind regards