"This issue of VAT on batteries installed after solar panels has been raised in our committee a number of times," said Hon Philip Dunne, chairman of the UK's Environmental Audit Committee. "I am therefore pleased that the Government has considered this issue in its consultations on VAT on energy efficient materials and that the committee will also be highlighting our case on this topic to the Chancellor."
The commission did not say when the new measure would take effect. “This VAT measure means that for the next five years battery storage as part of the installation of qualifying materials will benefit from a zero VAT rate,” said a document stating that the government implemented all of these measures to support residential PV.
These include recommending solar PV for new homes as a minimum requirement, setting more ambitious capacity targets in the 2035 plan, and other proposals to address skills and supply chain issues. The UK government already cut VAT on rooftop PV and heat pumps to zero in March.