Sigenergy vs Solax: Premium vs Value Battery Comparison
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Product Review Jun 27, 2026

Is There VAT on Solar Batteries?

Sarah Thompson

Energy Analyst, Yeers

Quick answer: Yes, but at 0%. Domestic solar batteries in the UK qualify for zero-rate VAT until 31 March 2027 under HMRC VAT Notice 708/6. Since 1 February 2024 this also covers standalone batteries fitted without solar panels, so households pay no VAT on the supply-and-install.

The current VAT rate on solar batteries

For residential installations in England, Scotland and Wales, the VAT rate on battery storage is 0%. This is a temporary zero-rate that HM Revenue & Customs applies to energy-saving materials, sitting alongside the wider 0% VAT on solar panels and heat pumps. The relief runs until 31 March 2027, after which the rate is scheduled to revert to the reduced 5% on 1 April 2027.

It is worth being precise here: a lot of installers and comparison sites quote the deadline as 31 January 2027. That is wrong. HMRC's guidance (VAT Notice 708/6) sets the cut-off at 31 March 2027. If you are budgeting around this relief, you have until the end of the 2026/27 financial year, not January.

Standalone vs with-solar: the rule that changed

This is the part most homeowners get wrong, because the rules genuinely changed mid-way through the relief period.

  • Before 1 February 2024: a battery only qualified for 0% VAT if it was installed at the same time as solar panels (or another qualifying energy-saving material). A battery retrofitted on its own was standard-rated.
  • From 1 February 2024: HMRC extended the zero-rate to cover standalone battery storage — a battery fitted on its own, with no panels, as a retrofit to an existing home. It now sits in its own right as an energy-saving material.

So whether you add a battery alongside a new array, retrofit one to a system installed years ago, or fit a battery purely to take advantage of cheap overnight tariffs, the supply-and-install qualifies for 0% VAT. For a typical residential battery storage installation, that zero-rate applies to both the hardware and the labour as a single supply.

What the 0% rate actually covers

The zero-rate applies to supply-and-install for residential property. In practice that means:

  • The battery unit and inverter/hybrid hardware
  • The installation labour, wiring, mounting and commissioning
  • Ancillary materials needed to complete the job

It does not cover a battery you buy on its own from a retailer and have someone else fit, or a DIY purchase with no installation — those are standard-rated supplies of goods. The relief is designed around an MCS-style supply-and-fit by a single installer, which is how YEERS quotes every job.

Worked examples

ScenarioInstalled before 1 Feb 2024Installed now (2026)
Battery fitted with new solar panels0% VAT0% VAT
Standalone battery, no panels (retrofit)20% VAT0% VAT
Battery added to an existing older arrayOften 20% VAT0% VAT
Battery bought online, self-fitted20% VAT20% VAT

Illustrative VAT treatment based on HMRC VAT Notice 708/6. Always confirm your specific job with your installer.

Example 1 — solar plus battery

A Hull household installs a 4kW solar array with a 10kWh battery in 2026. The whole package is zero-rated, so there is no VAT line on the invoice. A 4kW system typically costs £6,200–£8,200 installed at 0% VAT, with the battery adding roughly £700–£950 per usable kWh.

Example 2 — standalone retrofit

A homeowner in East Yorkshire already had panels fitted in 2019 and now wants storage to bank cheap overnight electricity. Because they are buying a supply-and-install battery in 2026, the job is 0% VAT — even though no new panels are involved. Before February 2024 this exact job would have carried 20% VAT.

How much the 0% rate saves you

Below are indicative figures for popular battery options. Treat these as a guide only.

BatteryTypeIndicative installed cost (0% VAT)Saving vs 20% VAT
Solax Triple Power (~10kWh)AC/hybrid, ~10-yr warranty~£7,000–£9,500~£1,400–£1,900
Sigenergy SigenStor (~10kWh)All-in-one, ~15-yr warranty~£8,000–£10,500~£1,600–£2,100

Indicative — verified June 2026; final price depends on capacity, electrics and site. The "saving" column shows the VAT a household would have paid before the zero-rate existed.

The Sigenergy SigenStor bundles inverter and modular battery (5–48kWh, optional DC EV charger) with true whole-home backup and a ~15-year warranty. The Solax Triple Power is a strong-value AC/hybrid option within the Solax inverter ecosystem. Either way, the 0% VAT relief applies to the installed price.

Does the battery affect other incentives?

Two points worth knowing:

  • SEG (Smart Export Guarantee): a battery does not earn export payments itself, but it lets you store solar generation and export at peak times when tariffs pay more. Octopus Outgoing Fixed pays around 15p/kWh flat, while time-of-use tariffs such as Intelligent Octopus Flux and Outgoing Agile can pay up to ~27p/kWh at peak (Ofgem-regulated SEG; rates indicative, verified June 2026 — check your supplier). You need MCS certification and a smart meter to qualify.
  • Boiler Upgrade Scheme (BUS): the £7,500 heat-pump grant does not cover batteries — batteries are not BUS-eligible. The two schemes are separate.

Why this matters for timing

The 0% rate is a genuine, time-limited window. From 1 April 2027 the rate is set to return to 5% VAT, so a battery fitted after that date will carry an extra cost the same install would avoid today. With standalone retrofits now included, there is no longer any VAT reason to bundle a battery with panels you do not need.

YEERS is an MCS-certified solar, battery, heat-pump and EV installer based in Hull, serving Hull, East Yorkshire, North Yorkshire and Lincolnshire, with a 10-year workmanship warranty. To see your zero-rated price on a solar-and-battery or standalone battery install, request a quote through our online form and we'll size the right system for your home.

Sources: HMRC VAT Notice 708/6 (energy-saving materials); Ofgem (Smart Export Guarantee); gov.uk (Boiler Upgrade Scheme). VAT treatment is general guidance — confirm your specific installation with your installer.

Frequently asked questions

Is there VAT on solar batteries in the UK?

Yes, but the rate is currently 0%. Domestic battery storage installed in the UK qualifies for zero-rate VAT until 31 March 2027 under HMRC VAT Notice 708/6, on a supply-and-install basis for residential property. The rate is scheduled to return to 5% on 1 April 2027.

Do standalone batteries (without solar panels) qualify for 0% VAT?

Yes. Since 1 February 2024, standalone battery storage fitted on its own — with no solar panels — also qualifies for 0% VAT. Before that date, a battery only qualified if installed at the same time as panels or another energy-saving material; standalone retrofits were standard-rated at 20%.

When does the 0% VAT on solar batteries end?

The zero-rate runs until 31 March 2027, then reverts to 5% VAT on 1 April 2027. Many sites incorrectly quote 31 January 2027 — HMRC's actual deadline in VAT Notice 708/6 is the end of March 2027, the close of the 2026/27 financial year.

How much does the 0% VAT save on a battery install?

It removes what would otherwise be 20% VAT on the installed price. On a battery costing roughly £700–£950 per usable kWh, a typical 10kWh install saving is around £1,400–£2,100 compared with the standard-rated price. The exact saving depends on capacity and site.

Can I claim 0% VAT if I buy a battery myself and have it fitted?

No. The zero-rate applies to a single supply-and-install by your installer. A battery bought separately as goods — for example online or DIY — is standard-rated at 20% VAT, even if someone else fits it later. To get 0% VAT, the hardware and installation must be quoted together by the installer.

Last updated June 2026 · YEERS — MCS-certified renewable installers, Hull & Yorkshire.

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