VAT Relief Extended to All Battery Storage Systems

From 1 February, VAT will no longer apply to domestic battery energy storage systems.

Currently, VAT exemption only covers batteries fitted at the same time as solar array. However, as from February this will be extended to standalone battery installations and retrofitted batteries.

The VAT exemption will also apply to water-source heat pumps and diverters (a technology that redirects excess power from solar or other renewables to a specific load or appliance, commonly a water heater).

Chris Hewett, Chief Executive of Solar Energy UK said, “Installing a battery energy storage system can double the savings offered by a home solar installation, so with energy prices as they are, retrofitting one is a great decision.”

Dave Roberts, UK MD at GivEnergy, comments: “Installers can now offer more competitive pricing to consumers for project completion. This, in turn, is likely to spur increased demand for energy storage solutions, driving technological advancements and fostering job creation within the sector.”