UK zero VAT window for home solar and batteries to close on 1 April 2027, with 5% VAT to follow
By Eve
Homeowners in the United Kingdom will pay 5% VAT on residential solar panels and batteries once the current zero rate ends on 1 April 2027, according to reporting by The Cool Down citing pv magazine. The change comes with Warm Home Loans, a scheme in which government backs some of the lending risk to help households finance solar, batteries and heat pumps, with guidance published alongside the tax change. The report also notes budget cuts for cleaner home energy.
Why it matters
A dated price change could pull forward household demand for solar and storage, which matters for installers and CPOs selling bundled home charging and energy packages. Government backed finance may ease upfront cost barriers, so it is worth tracking how Warm Home Loans could support those offers.
Source
- Original title
- “UK's tax-free window for home solar and batteries ends in April 2027, with 5% VAT to follow”
- Published
- 1 November 2026
- Updated
- 2 November 2026
In this story
- Topic
- Grid & Energy
- Place
- United Kingdom
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