UK VAT on solar panels and batteries: what to check
How to check the domestic energy-saving-materials relief and why eligibility depends on the precise supply.
Reviewed 2026-09-24 · 5 min read
Start with HMRC
VAT treatment depends on the supply, building and customer circumstances. HMRC Notice 708/6 explains the reduced and zero rates for energy-saving materials. Check it at the quote date because rules and conditions change.
Solar panels are listed among qualifying energy-saving materials in the relevant relief. Treatment can depend on whether materials are installed as qualifying work, the property’s use, customer status and other conditions. Equipment sold separately is not necessarily treated like an installed package.
Notice 708/6 also explains that the relief is not a blanket rule for every energy-related product or every building. It sets conditions around the type of accommodation and the way goods and installation are supplied. This is why a supplier should state the basis for the rate on the actual invoice, not simply repeat a marketing slogan.
For a mixed-use property, new-build, charity building or unusual contract, ask a tax adviser to examine the facts. Do not infer the answer from a neighbour’s installation: two projects with similar panels can have different VAT treatment because their customers, buildings or supplies differ.
Read the invoice
Request a written explanation separating equipment, installation and non-qualifying work. Roof repairs, building work and some electrical alterations can have different treatment. Do not assume a headline zero-rate statement applies to every line.
The supplier applies VAT to its supply, but keep the quote and invoice. For unusual circumstances, ask HMRC or a tax adviser rather than accepting a sales claim.
Check whether the quote includes a separate roof repair, battery, monitoring service, survey, scaffolding or electrical alteration. Ask the supplier to identify the VAT treatment of each line and whether a later variation could change it. A clear invoice is useful if HMRC or an adviser later asks how the work was supplied.
A zero-rate treatment does not make an installation free, and it does not validate the system design or predicted savings. Compare the technical specification and total contractual price independently of the VAT explanation.
Keep it date-specific
This is general information dated 24 September 2026, not tax advice. Notice 708/6 is the authoritative starting point for current rates, qualifying materials, conditions and exceptions.
The notice has been updated over time, including changes to energy-saving-material relief. Before paying a deposit, open the current GOV.UK page, read its latest update and ask the supplier to confirm the rate they will charge on the completion invoice. If the work crosses a tax period or the contract changes, recheck rather than carrying forward an old quote.
Keep VAT separate from the technical decision. A supplier’s tax treatment does not confirm panel quality, expected generation, electrical compliance or warranty strength. Those questions still need their own evidence and contract wording.
If a quote says that a relief applies because a household meets an income or building condition, ask for the relevant HMRC paragraph rather than relying on an unexplained assertion. Tax advice should come from HMRC or a suitably qualified adviser.
Common questions
Are panels always zero-rated?
No. The result depends on supply, property and current HMRC conditions.
Are batteries covered?
It depends on how the battery and installation meet the current rules; ask for the precise basis.
Can a quote promise a VAT rate forever?
No. Verify legislation and the facts of the supply when contracting.