Electrical Battery Storage

Zero Rate VAT on Energy Saving Materials

The zero rate VAT will be extended to even more energy saving materials (ESM) next month! 🎉

Since April 2022, electrical battery storage already qualified for the zero rate VAT when installed in conjunction with a qualifying ESM, such as Solar PV. However, from 1 February 2024, the zero rate will be extended to electrical battery storage that is:

🔋 Retrofitted to a qualifying energy saving material
🔋 Installed as a standalone technology connected to the grid

This is a welcome relief for homeowners who had solar panels, wind turbines, or water turbines before the recent developments and improvements in battery storage. Now, already green households can benefit from the ESM tax relief and maximise their efficiency with additional battery storage.

The following will also be included within the zero rate:

✅ Water-source heat pumps
✅ Diverters retrofitted to energy saving materials

The zero rate VAT on ESMs is due to expire on 31 March 2027, where it’s expected to rise back to 5%.

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If you’re looking to install solar panels, battery storage, or a full renewable energy system, simply get in touch with our team today on 01280 830135 or drop us an email at solar@tselectrical.info.

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