0% VAT on solar panels and batteries ends 31 March 2027. What it means for you

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The 0% VAT deadline: what ends on 31 March 2027, and what it costs to miss it

Two unrelated VAT reliefs happen to expire on the same day. From 1 April 2027, the zero rate on installing solar panels, batteries and other energy-saving materials reverts to 5 per cent, and separately, the zero rate on your electricity bill itself reverts too. Here is what each is actually worth, what still qualifies, and how much runway a straightforward job realistically needs.

Updated 28 September 2026 · written by the Clearline guidance team

6 dated sources, listed in full below Plain English, written to explain before anyone quotes Figures recomputed at every update, never recycled
Aerial view of UK rooftops fitted with solar panel arrays

The short answer

Two separate VAT reliefs both end on 31 March 2027. The zero rate on installing solar panels, battery storage and other energy-saving materials in a home reverts to 5 per cent from 1 April 2027. Separately, the temporary zero rate on domestic electricity itself, in place since 1 October 2026, also ends that day and returns to 5 per cent. Neither extension has been announced, and the date governs the day the work is completed or the electricity is supplied, not the day you were quoted.

One date, two different reliefs

Confusing the two is easy because they share an end date and a rate reversion. The installation relief is worth hundreds of pounds on a typical system and has run in Great Britain since 1 April 2022. The electricity relief is worth roughly £45 a year on a typical bill and only started 1 October 2026. Neither changes the other.

What actually ends on 31 March 2027

ReliefIn force sinceReverts toRoughly worth
Installation of solar panels, batteries, heat pumps and other energy-saving materials
1 April 2022 in Great Britain (batteries added 1 February 2024)
5% from 1 April 2027
£200 to £500-plus on a typical solar or battery job
Domestic electricity supply itself
1 October 2026
5% from 1 April 2027
Around £45 a year on a typical bill

Installation relief confirmed by HMRC VAT Notice 708/6. Electricity relief confirmed by HMRC's Revenue and Customs Brief 10 (2026). Both checked 25 September 2026. The electricity relief is Great Britain only; Northern Ireland stays at 5% throughout.

The full detail of what qualifies for the installation relief, including batteries fitted without solar, sits in our main guide to 0% VAT on solar and batteries. This page is about the deadline itself: what it is worth to move before it, and what happens if a job runs past it.

What it costs to install after 1 April 2027, in Clearline's own prices

Applied to Clearline's own current package prices rather than a generic industry benchmark, the difference between installing before and after the deadline looks like this.

PackageInstalled price now, 0% VATSame job at 5%, from 1 April 2027VAT added
LONGi solar, 4 kWp (£1,000 per kWp)
£4,000
£4,200.00
£200.00
LONGi solar, 6 kWp (£1,000 per kWp)
£6,000
£6,300.00
£300.00
Duracell Dura16, installed with solar
£4,450
£4,672.50
£222.50
Tesla Powerwall 3
£6,350
£6,667.50
£317.50
Tesla Powerwall 3 with Expansion, 27 kWh
£10,850
£11,392.50
£542.50

Clearline package prices, published on our own product pages and checked 25 September 2026, already include 0% VAT. The 5% column is Clearline's own arithmetic applied to those prices; it is not a prediction of what a quote will look like after 1 April 2027, since Clearline's own prices may themselves change by then.

On the two battery packages, that is a smaller saving than most people assume, because the relief being lost is 5 percentage points, not 20. The two things worth comparing before either one is the spread between two quotes for the same work, which is routinely wider than 5 per cent, and whether the system pays for itself on its own numbers regardless of the VAT rate.

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What still counts as a qualifying installation

  • Residential accommodation only. A home qualifies. A workshop, let commercial unit or business premises does not.
  • Supply and install as one contract. The panels, the battery, the labour, the scaffolding and the cabling all sit inside the zero rate when they are billed under a single installation contract for the qualifying work.
  • The installation date governs, not the quote date. A job quoted in 2026 but completed after 1 April 2027 falls the wrong side of the deadline.
  • Hardware bought without installation does not qualify. Buying panels or a battery to fit yourself is a different transaction, and the zero rate does not travel with the goods.
An all-black in-roof solar array on a new-build red brick home
An in-roof solar array of the kind the installation relief covers in full, including the labour and mounting.

How much runway a job actually needs

Industry guidance on quote-to-switch-on timelines for a straightforward domestic solar or battery job commonly puts the end-to-end process, from an accepted quote to first export, at around six to ten weeks: equipment lead time of two to four weeks, then DNO notification and MCS paperwork running in parallel. A larger system needing G99 prior approval rather than a simple G98 notification can add materially more, since a DNO has up to 45 working days to respond to a G99 application. None of that is a Clearline-specific promise, since your own timeline depends on your DNO, your consumer unit and the time of year, and it is deliberately general industry guidance rather than a fixed figure.

An illustrative last-safe-start window, not a booking deadline

Working backwards from 31 March 2027 on the six-to-ten-week range above gives a rough illustrative window of mid-January to mid-February 2027 as a last-safe-start point for a straightforward single-phase job with no G99 application. That is Clearline's own arithmetic on general industry timelines, not a guarantee, and it gets tighter for anything larger or more complex. The closer the calendar gets to March, the more it is worth confirming the position in writing before paying a deposit.

How to read a quote against the deadline

Step 1

Confirm the VAT treatment is shown, not just absent

A qualifying job should show VAT at 0% on the paperwork. A quote with no VAT line stated at all is one you cannot check.

Step 2

Confirm it is one installation contract

Kit, labour, scaffolding and commissioning under a single contract is what pulls the whole job into the zero rate.

Step 3

Ask for the installation date, not the quote date, against the deadline

If the scheduled completion is anywhere near 31 March 2027, get the VAT position confirmed in writing before you commit.

Step 4

Get a written date for any board work or a G99 application

These are the two most common reasons a straightforward timeline stretches, and both are visible at survey stage.

Should the deadline change your timing

Only if the system already makes sense on its own numbers. A relief worth 5 per cent of a job is smaller than the spread routinely seen between two quotes for the same work, so it is a reason to finish a decision you were already making, not a reason to start one. The one case where the date genuinely bites is a phased plan: fitting solar now and adding a battery after April 2027 means the second job carries 5% on top of a second visit's labour, so working out the whole design in one go is worth doing on cost grounds even without the deadline.

A free design call gives you a written, itemised price with the VAT position and a realistic install date stated up front, not decoded from a quote after the fact.

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The other dates that get confused with this one

None of the following is the VAT deadline, and none should be confused with it. ECO4, the supplier-funded efficiency scheme, closes on 31 December 2026 with no announced successor. The 0% VAT on domestic electricity itself, covered above, is a separate relief from the installation relief and started later, on 1 October 2026. Keeping the three dates straight, 31 December 2026, 1 October 2026 to 31 March 2027, and 31 March 2027, matters more than any single number on this page, because conflating them is the easiest way to misquote all three.

The full mechanics of what qualifies for the installation relief, including retrofitted and standalone batteries, sit in our main VAT guide. Current package prices, all shown inclusive of 0% VAT, are on our solar and battery storage pages, and funding schemes that sit alongside VAT relief are covered in our guide to solar grants and funding.

FAQs

The VAT deadline, answered

What exactly ends on 31 March 2027?

Two things. The 0% VAT relief on installing solar panels, battery storage and other qualifying energy-saving materials reverts to 5% from 1 April 2027. Separately, the temporary 0% VAT relief on domestic electricity itself, in place since 1 October 2026, also reverts to 5% on the same day. They are different reliefs that happen to share an end date.

Is there still time to beat the deadline?

Yes, well over a year remains as of this guide's publication date. General industry guidance puts a straightforward quote-to-switch-on timeline at six to ten weeks, so most homes have plenty of runway. The margin narrows if the system needs a G99 application, which can add up to 45 working days of DNO response time.

How much does the VAT relief actually save on a typical system?

On Clearline's own current package prices, £200 to £300 on a solar-only install between 4 and 6 kWp, £222.50 on a Dura16 fitted with solar, and £317.50 on a Tesla Powerwall 3. It is a 5 percentage point saving, not 20, because the rate reverts to the reduced 5% rate, not the standard 20% rate.

Will the government extend the 0% VAT deadline?

No extension has been announced as of 25 September 2026. The installation relief is legislated to run to 31 March 2027 under current rules, and the electricity relief ends on the same date. Any extension would need a new announcement, and this page will be updated if one comes.

Does the deadline apply to a battery fitted without solar panels?

Yes. Battery storage has qualified for the 0% rate in its own right, fitted with new solar, retrofitted to existing solar, or entirely standalone, since 1 February 2024, and the same 31 March 2027 deadline applies to it as to solar.

What happens if my installation runs past 31 March 2027?

The job reverts to 5% VAT, calculated on the date the installation is completed, not the date you were quoted or signed a contract. If a scheduled completion date is close to the deadline, get the VAT treatment confirmed in writing before you commit.

Is commercial or rental property covered by the same deadline?

The zero rate is written for residential accommodation. A workshop, a let commercial unit or a business premises sits outside it regardless of the date, so the 31 March 2027 deadline is only relevant where the property already qualifies as a home.

VAT treatment checked against HMRC Notice 708/6 and Revenue and Customs Brief 10 (2026) on 25 September 2026. Installation lead-time guidance is general industry commentary, not a Clearline-specific promise; your own timeline is confirmed at survey. Every system is installed and commissioned by our own MCS-certified, fully insured installation teams. We are not tax advisers.

Sources
  • HMRC, VAT Notice 708/6: Energy Saving Materials and Grant-Funded Heating Supplies, zero rate on qualifying installations from 1 April 2022 (Great Britain) to 31 March 2027, reverting to 5% from 1 April 2027 https://www.gov.uk/guidance/vat-on-energy-saving-materials-notice-7086
  • The Value Added Tax (Installation of Energy-Saving Materials) Order 2022 (SI 2022/361): articles 1 to 7 in force 1 April 2022, zero rate on installing energy-saving materials in England, Wales and Scotland to 31 March 2027, checked 28 September 2026 https://www.legislation.gov.uk/uksi/2022/361/made
  • HMRC, Revenue and Customs Brief 10 (2026): temporary zero rate of VAT for domestic electricity in Great Britain, 1 October 2026 to 31 March 2027 https://www.gov.uk/government/publications/revenue-and-customs-brief-10-2026-temporary-zero-rate-of-vat-for-domestic-electricity-in-great-britain
  • Clearline package prices for LONGi solar, Duracell Dura16 and Tesla Powerwall 3, published on our own product pages, checked 25 September 2026 clearlinehomeenergy.co.uk
  • Industry guidance on UK domestic solar and battery installation lead times, quote-to-switch-on timelines and DNO G98/G99 notification windows https://www.ukem.co.uk/solar-battery-storage/guides/solar-panel-installation-timeline/
  • Ofgem, ECO4 delivery guidance: scheme closes 31 December 2026 with no announced successor obligation https://www.ofgem.gov.uk/guidance/eco4-delivery-guidance
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