VAT on Solar Installations in the UK: What You Need to Know

VAT on solar installations varies depending on the customer, property type, and scope of work. Homeowners currently benefit from 0% VAT on new solar and battery installations until March 2027, while repairs and maintenance are usually charged at a reduced 5% rate. For businesses, commercial installations are subject to the standard 20% VAT, which is typically reclaimable if the business is VAT-registered. In subcontracting scenarios under the Construction Industry Scheme (CIS), the reverse charge applies, meaning the customer accounts for VAT instead of the supplier.