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If you’ve been putting off solar, you now have a deadline to consider. From 1^st April 2027, VAT (Value Added Tax) on solar panels is going up from 0% to 5%. So, we recommend you book your installation now.

First, a bit of background 

The current 0% VAT rate applies to the purchase and installation of solar panels and other energy-saving materials (known as ESMs), like batteries, insulation and heat pumps. However, it only applies when the panels are installed by the same company that supplies them. So, if you buy panels from a supplier and get a separate installer to fit them, you’ll pay the standard rate of VAT (20%) on the panels. Most people adding solar to their home won’t do this – and many solar installers won’t fit panels they’re unfamiliar with. Still, it’s worth keeping in mind.

The 0% VAT also only applies to residential properties and buildings used for ‘charitable purposes’. Business premises are not included.

So, what’s changing?

Since 2022, households across the UK have paid zero VAT on solar panels, battery storage and other ESMs. But that VAT relief is due to end next spring – on 31st March 2027. From the 1st April, VAT will be 5%, which will add extra costs to your installation.

Sopoco MD David is not impressed with the planned VAT increase. “It seems to me that under a government that is promoting renewable energy, increasing VAT on residential installations from April 2027 is ridiculous. Not only will it increase the financial barrier to entry for a lot of people, it will cause a slowdown in the adoption of renewable power which could be problematic for the whole UK industry.” 

What this means for your wallet

On a typical £12,000 solar system, 5% VAT adds £600 to the price. If you install before the deadline, that’s £600 you keep in your pocket.

Why choose SOPOCO for your 0% VAT solar installation?

• Your solar system will be tailored to your energy usage and needs, not just your roof. We assess your property and talk to you about your energy goals, to recommend what will actually work best for your home
• Our expert engineers handle every detail: the structural calculations, shade reports, mounting designs – we do things properly
• We’re here for you after installation. We’ll visit you a week later to answer any questions you might have, and you’ll never be left wondering if everything’s as it should be

Act now for solar by spring

Installers will get busier as the VAT increase approaches. Quotes, surveys and scheduling can all take a bit of time, so booking your installation now will give you the best chance of having your system fitted well ahead of 1st April 2027. 

Solar already pays for itself through lower energy bills – and can even earn you money. And right now, it costs less to install than it will from next spring. Start today and lock in your installation before the 0% VAT window closes.