0% VAT on solar is ending: what installers need to know

Since 1 April 2022, homeowners in Great Britain have paid no VAT on having solar panels, heat pumps and insulation installed. Northern Ireland followed on 1 May 2023, and batteries joined on 1 February 2024. On 1 April 2027 that ends, and the rate goes back to 5%. Here is what is changing, what it means for your installs, and what we'd do about it.

What is actually changing

• Today: 0% VAT on installing energy-saving materials in homes, including solar panels, heat pumps, insulation and, since February 2024, batteries, including a battery fitted on its own.
• The end date: the zero rate runs until 31 March 2027, in Great Britain and Northern Ireland alike.
• From 1 April 2027: the reduced rate of 5% applies instead.

HMRC's guidance still gives 31 March 2027 as the end date as of 4 November 2026. No extension has been announced. Plan for the deadline, not for a rescue.

What it means in pounds

On a £10,000 solar and battery system, a homeowner pays £10,000 today and £10,500 from April 2027. On a £15,000 system, it's £750 more. Not enough to stop a buyer who wants it, but plenty to use as a reason to decide now rather than in the summer.

What it means for installers

• A rush in the first three months of 2027. Homeowners who were "thinking about it" get a date. Expect more enquiries, and more of them wanting it done quickly.
• Your diary is the bottleneck. The deadline is only worth something if you can fit the job before it. Know your capacity for January to March now.
• Check when the VAT is due. VAT follows the time of supply: generally when the work is done, or earlier if you invoice or take payment first. How deposits and stage payments fall either side of 31 March is a question for your accountant, before you promise anyone 0%.
• After April, the price goes up, not the value. The installers who keep selling are the ones homeowners already trust, not the ones who were only ever cheapest.

What it means for your advertising

• Start before the rush, not in it. Ads need a few weeks to learn who buys. An account that starts in March learns while the deadline passes.
• Use the date honestly. "0% VAT ends 31 March 2027" is true and specific. "Prices rising, act now!" is what every other installer will say.
• Qualify harder, not less. A deadline brings tyre-kickers too. Ask who owns the home, what they want fitted and when, before your surveyor drives anywhere.
• Show your work. When everyone is shouting about VAT, the installer with real jobs, real fitters and real customers on video is the one people ring.

Why us

We film your real jobs, run them as Facebook and Instagram ads, put a quiz between the ad and your phone, and tell Facebook which enquiries bought. Before a deadline, that means your ads are learning from sales by January, not starting from scratch in March. It's £2,000 to start. Book a free autopsy and we'll tell you straight whether your diary can take a VAT rush, and what we'd run.

Sources

• HMRC, VAT on energy-saving materials and heating equipment (VAT Notice 708/6), GOV.UK, read 4 November 2026.
• HMRC, VENSAV2083: VAT rates applying to qualifying energy-saving materials with commencement dates, GOV.UK, read 4 November 2026.

This is a guide for installers, not tax advice. Check how the change applies to your contracts with your accountant.