0% VAT on Solar Explained

How does 0% VAT on solar panels work?

0% VAT on solar panels — the complete explanation: WHAT: Since April 2022, VAT on residential solar panel installation is 0% (reduced from 5%). This saves £1,000-£1,600 on a typical installation. WHO QUALIFIES: All residential properties in the UK. The property must be used as a dwelling. New builds and existing homes both qualify. Buy-to-let properties qualify if the tenant uses it as a dwelling. Second homes qualify. Holiday lets qualify. WHO DOESN'T QUALIFY: Commercial/industrial buildings (standard VAT applies). Community buildings (some qualify under separate rules). HOW MUCH SAVED: £6,500 system: normally £325 VAT (5%) or £1,300 (20%) → saved with 0%. £9,000 system: normally £450 (5%) or £1,800 (20%) → saved. DURATION: Finance Act 2022 sets 0% until March 2027. May be extended — government decision expected Autumn 2026. HOW TO CLAIM: Automatic — your installer charges 0% VAT on the invoice. No application needed. Check the invoice shows 0% VAT. Source: HMRC VAT Notice 708/6 (gov.uk/guidance/vat-on-energy-saving-materials), Finance Act 2022 Section 7.