UK Plans to Cut VAT for Residential Energy Storage Batteries

The UK government is currently considering waiving the value-added tax (VAT) for residential battery energy storage related to new installations and subsequent retrofits of rooftop solar systems.


It has not been said when the new measure will take effect. “This VAT measure means that for the next five years battery storage as part of the installation of qualifying materials will benefit from a zero VAT rate,” said a document stating that the government implemented all of these measures to support residential PV.

These include recommending solar PV for new homes as a minimum requirement, setting more ambitious capacity targets in the 2035 plan, and other proposals to address skills and supply chain issues.

The UK government already cut VAT on rooftop PV and heat pumps to zero in March.