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0% VAT on home batteries: what is covered and until when

Installing a home battery is zero-rated for VAT until 31 March 2027, then 5%. Here is what HMRC covers and what to check on your quote.

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Updated 8 October 2026. Independent guide; not a government website and not an installer.

The simplest saving on a home battery is not a grant. It is that your installer should not charge you VAT on the supply and fitting, which is 20% off what the same job would otherwise cost.

The rule

  • 0% VAT until 31 March 2027 on the installation of qualifying energy-saving materials, including batteries, in residential accommodation.
  • 5% from 1 April 2027, not back to 20%, as currently legislated.
  • The relief covers supply and installation together. If you buy the unit and have it fitted by someone else, the supply is standard-rated.

What is covered

HMRC's guidance (Notice 708/6) covers batteries installed with a new solar system, retrofit batteries added to existing generation, and standalone batteries that store grid and/or generated power, in homes. It does not cover general commercial buildings.

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Check your quote

  1. The quote should show VAT at 0% for the supplied-and-fitted system.
  2. If a quote includes 20% VAT on a home install, ask why.
  3. Look at the date: work completed after 31 March 2027 would attract 5%.
Timing: if you are comparing now, the gap between 0% and 5% on a £6,000 job is about £300. It is worth knowing, but not a reason to rush into a poor quote.

We have not seen an extension beyond March 2027 confirmed; check GOV.UK before you rely on one.

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Frequently asked questions

Is there VAT on a home battery in 2026?

No. Installing energy-saving materials, including batteries, in residential property is zero-rated until 31 March 2027. From 1 April 2027 the rate becomes 5%.

Does 0% VAT apply to a standalone battery?

Yes, according to HMRC's guidance: retrofit batteries added to existing microgeneration, and standalone batteries storing grid and/or generated power, are covered in residential premises. Batteries fitted with a new solar system fall within the single zero-rated supply.

Does it apply to buying the battery on its own?

No. The relief applies to supply plus installation. Supply without installation is standard-rated at 20%.

Does the relief apply to businesses?

Not to general commercial premises. It covers residential accommodation and buildings used solely for a relevant charitable purpose.

Is this the same as the VAT cut on electricity bills?

No. Household electricity bills have 0% VAT from 1 October 2026 to 31 March 2027 as a separate measure. That lowers what each unit costs, which slightly reduces the savings a battery makes per kWh.

Sources and how we checked
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