VAT cut to zero for domestic Solar Panel Installations

Yesterday, 23rd March 2022, Chancellor Rishi Sunak announced VAT for solar panel installations will be cut to 0% in his Spring Statement.

Previously, an MCS approved Installation was chargeable at 5% but only in very specific circumstances.


solar pv panels on a residential home

This move creates an added incentive to ‘go green’ and save money on gas/elec bills for homeowners by having solar installed. The cut in costs will only improve payback figures at a time when energy prices have sharply risen and are set to rise again.


Although Sunak credited Brexit for the ability to cut the VAT, with Britain now being out of EU jurisdiction, many European countries already have or are looking to make the same move.


The key word in this announcement seems to be ‘installation.’ Purchase of just solar equipment is still chargeable at 20% although this will only help with an installer’s VAT return.

These changes are set to occur in April 2022 and may give the renewable industry a small shot in the arm.

As always, Stove & Solar are on hand to assist with any solar panel project you may have, you can contact us here.


a solar panel installer adds a panel to a roof

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