Independent verification of your project's eligibility for 0% VAT on energy-saving materials. Don't leave thousands on the table.
As of February 2024, these energy-saving installations qualify for zero-rated VAT when supplied and fitted.
Photovoltaic panels, inverters, and mounting hardware qualify for 0% VAT
Air source and ground source heat pumps with full electrical infrastructure
Standalone battery storage now qualifies for 0% VAT from Feb 2024
Understanding the differences based on HMRC Notice 708/6
| Criteria | New Build / Conversion | Retrofit / Existing |
|---|---|---|
| VAT Rate | 0% (Zero-rated) | 0% (Zero-rated) |
| Solar PV | Part of new build can be zero-rated. Must be installed as part of construction. | 0% VAT when supplied and fitted to existing residential property. |
| Heat Pumps | Zero-rated when part of new build specification. Electrical infrastructure included. | 0% VAT on supply and installation. Associated electrical work also zero-rated. |
| Battery Storage | Zero-rated as energy-saving material when installed in new construction. | 0% VAT from Feb 2024 - can be standalone without solar system. |
| DIY Installations | Not eligible for 0% VAT | Not eligible for 0% VAT |
| Supply Only | Standard 20% VAT applies | Standard 20% VAT applies |
The 0% VAT relief ONLY applies when materials are supplied AND fitted by a registered installer. Materials purchased separately or DIY installations are subject to standard 20% VAT. This requirement is non-negotiable under HMRC rules.
Verify your project meets these mandatory requirements
Installation must be supplied and fitted by MCS/NAPIT certified installer. No DIY or supply-only purchases.
Property must be used solely for residential purposes. Mixed-use properties may have different treatment.
Installer must hold valid MCS certification for heat pump and solar PV installations to qualify.
Written confirmation from installer that 0% VAT rate is being applied per Notice 708/6.
Minimum 1.5kWp per bedroom required for new builds from April 2026 under Warm Homes Plan.
On a typical self-build energy package (solar PV, heat pump, battery storage, and electrical infrastructure), 0% VAT can save between £5,000 and £15,000 compared to standard VAT rates.
Current zero-rated VAT relief is scheduled to end on March 31, 2027
Standalone battery storage systems became eligible for 0% VAT, even without solar PV installation.
Solar PV, heat pumps, and battery storage all qualify for zero-rated VAT when supplied and fitted. Maximum savings window.
Mandatory 1.5kWp solar per bedroom for new residential builds. Non-compliance may affect Building Control approval.
Current relief scheduled to revert to standard VAT rates. Projects must be completed before this date to benefit.
The 0% VAT relief represents a limited-time opportunity. Self-builders should factor in design, procurement, and installation timelines to ensure completion before the March 2027 deadline. Late-stage projects may face significant additional costs if relief expires.
Independent assessment of your project's 0% VAT eligibility and 2026 compliance requirements. Fixed-fee consultation with written confirmation.
Typical response time: Same day. Fixed-fee assessment includes written VAT eligibility confirmation.
Don't leave 20% of your budget on the table. Our 12-page guide covers the Warm Homes Plan updates, the 1.5kWp solar mandate, and how to qualify for zero-rated VAT.
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