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20% VAT scrapped for Battery storage!

HUGE CUTS TO BATTERY STORAGE VAT ANNOUNCED!




Huge news coming out of 10 downing street this week, and it has nothing to do with party scandals but everything to do with VAT rates on battery storage systems!


The UK government has exempted retrofitted battery energy storage systems (BESS) from its 20% VAT, from 1 February 2023.


Givenergy battery storage
0% VAT Battery Storage | Reduced Rate Battery Storage

Solar Pv Battery Storage VAT reduced.


Since the spring statements back in 2022, energy saving domestic equipment such as heat pumps and roof-mounted solar have been exempt from the VAT. Battery storage systems have also been exempt too, but only when installed alongside other energy-saving materials such as solar pv.

This has been a huge financial stumbling block for many customers who already have solar pv installed and want to add batteries or those just looking to add battery storage and take advantage of the discounted energy rates.


However, yesterday (11 December 2023) the government announced that retrofitted Battery Energy Storage Systems (BESS) will now also be exempt from the tax.


Installers accross the UK along with members of the energy industry, have been campaigning for retrofitted BESS to also be included in the VAT exemption, however it was not addressed in the Autumn statement.


Following a consultation on the expansion of the VAT relief on energy-saving materials – also announced in the 2022 Spring Statement – the government revealed:


“The government agrees with respondents, though, that this technology meets all of the stated objectives for this VAT relief in its own right, and will therefore bring electrical battery storage within the scope of the relief. This means that the technology will now also qualify for VAT relief when either retrofitted to a qualifying energy-saving materials, or installed as a standalone technology connected to the grid.”


What does this mean for you?


Retrofit battery storage systems usually contain 20% VAT, therfore a system costing £10,000 inclusive of VAT would cost, from the 1st Feb 2024, just over £8,300! The savings made here are substantial and now makes battery storage more affordable for homeowners.

What next?

Simply get in touch by phone or email and we can provide you with a quotation for your energy storage system.

If you have already had a quotation for a battery system and what to get an updated quotation, please get in touch via email. Info@evorenewables.co.uk

Did you know, we can also help to finance your solar pv or battery system? Want to know more, simply get in touch.

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