Quick answer: The UK's 0% VAT rate on domestic solar panels, battery storage and heat pumps ends on 31 March 2027. From 1 April 2027 the rate reverts to 5% (HMRC VAT Notice 708/6). Many sites wrongly cite 31 January 2027 — the correct deadline is 31 March 2027.
The exact deadline: 31 March 2027
Since April 2022, the supply and installation of qualifying domestic energy-saving materials has been zero-rated for VAT in Great Britain. That relief is time-limited. Under HMRC VAT Notice 708/6, the 0% rate applies to installations completed on or before 31 March 2027. On 1 April 2027 the rate steps back up to 5% — the reduced rate that applied before the zero-rate window opened.
You will see a lot of competing claims online stating the relief ends on 31 January 2027. That is incorrect. The legislation ties the relief to the end of the 2026/27 tax-year window on 31 March 2027. Getting this right matters: a January date could push you to rush a quote unnecessarily, or worse, miss the genuine two-month window that follows.
What the 0% VAT relief covers
The zero rate is broad. It applies to the supply-and-install of the following for residential properties:
- Solar PV panels — the panels and associated installation work.
- Battery storage — including standalone batteries added to an existing system, which became zero-rated from 1 February 2024.
- Heat pumps — air source and ground source units.
Because it is supply-and-install relief, the 0% rate covers both the kit and the labour when fitted together by your installer. If you are weighing up solar panel installation, this is the cheapest window the technology has been available in for VAT purposes. For the full breakdown of how the relief is applied, see our guide to 0% VAT on solar panels.
VAT rate timeline at a glance
| Period | VAT rate on domestic solar/battery/heat pumps |
|---|---|
| April 2022 – 31 March 2027 | 0% (zero-rated) |
| From 1 April 2027 | 5% (reduced rate) |
Source: HMRC VAT Notice 708/6. Standalone batteries included since 1 February 2024.
Why act before 31 March 2027
The difference between 0% and 5% is small as a percentage but real in cash terms, and it lands on the whole installed price — kit and labour. A typical 4kW solar system costs around £6,200–£8,200 installed under the current 0% rate. Add a battery and you are often into five figures, so the saving grows with system size.
There is also a practical reason to move early rather than waiting until March 2027: demand. As any tax deadline approaches, installer order books fill and lead times stretch. Booking a survey and install well ahead of the cut-off is the safest way to lock in the zero rate.
Worked saving example
Here is what the relief is worth on representative system prices. These figures show the VAT you avoid by installing before the deadline rather than after it.
| System | Indicative installed price (0% VAT) | 5% VAT if installed after 1 Apr 2027 | You save by acting now |
|---|---|---|---|
| 4kW solar only | £7,000 | £7,350 | ~£350 |
| 4kW solar + ~10kWh battery | £12,000 | £12,600 | ~£600 |
| Heat pump (air source) | £10,000 | £10,500 | ~£500 |
Indicative — prices vary by property and specification. The "save" column is the 5% VAT you avoid by installing during the 0% window.
What about the Boiler Upgrade Scheme and SEG?
The VAT relief is separate from the other support available, and these can stack:
- Boiler Upgrade Scheme (BUS): a £7,500 grant towards an air source or ground source heat pump in England and Wales. You need a valid EPC and to be replacing a fossil-fuel system; an MCS-certified installer applies on your behalf and deducts the grant. Batteries are not BUS-eligible.
- Smart Export Guarantee (SEG): larger suppliers (150,000+ customers) must pay you for exported solar. Strong 2026 tariffs include Octopus Outgoing Fixed at around 15p flat, with Intelligent Octopus Flux and Outgoing Agile paying up to ~27p at peak. SEG rates are indicative — verified June 2026, check your supplier; you need MCS certification and a smart meter.
So while the 0% VAT clock is ticking towards 31 March 2027, the £7,500 heat-pump grant and SEG export income remain available to bring your payback down further. A well-specified 4kW solar system covers roughly 60–75% of a typical home's electricity in Yorkshire, with payback in around 7–11 years — faster with a battery and a good SEG tariff.
Don't be caught out by the wrong date
To recap the one fact that matters most: the 0% VAT relief on domestic solar, batteries and heat pumps ends on 31 March 2027, not 31 January 2027, and the rate becomes 5% from 1 April 2027. The earlier you book your survey, the more comfortably you sit inside the window — and the less you are exposed to deadline-driven price rises and stretched installer schedules.
YEERS is a Hull-based, MCS-certified solar, battery, heat-pump and EV installer covering Hull, East Yorkshire, North Yorkshire and Lincolnshire, with a 10-year workmanship warranty. To get a quote in before the 0% VAT deadline, request your free quote through our online form and we'll size a system and price for your property.
Frequently asked questions
When does 0% VAT on solar panels end?
The 0% VAT rate on domestic solar panels, battery storage and heat pumps ends on 31 March 2027. From 1 April 2027 the rate reverts to 5% under HMRC VAT Notice 708/6. Despite widespread claims of a 31 January 2027 deadline, the correct date is 31 March 2027.
Is the 0% VAT solar deadline 31 January or 31 March 2027?
It is 31 March 2027. A common error online states 31 January 2027, but the relief runs to the end of the 2026/27 window on 31 March 2027, with the 5% rate applying from 1 April 2027. Always check the date against HMRC VAT Notice 708/6.
Does 0% VAT apply to battery storage and heat pumps too?
Yes. The 0% rate covers solar PV, heat pumps and battery storage on residential supply-and-install. Standalone batteries — added to an existing system — became zero-rated from 1 February 2024 and are also covered until 31 March 2027.
How much will I save by installing before the VAT deadline?
You avoid the 5% VAT that applies from 1 April 2027. On a typical £7,000 solar install that is around £350; on a £12,000 solar-plus-battery system roughly £600. The saving scales with system size and applies to both the kit and the installation labour.
What happens to solar VAT after 1 April 2027?
The rate reverts to 5%, the reduced VAT rate that applied before the zero-rate window. It does not return to the standard 20% rate. Installing during the 0% window before 31 March 2027 is the cheapest option from a VAT standpoint.
Last updated June 2026 · YEERS — MCS-certified renewable installers, Hull & Yorkshire.
