WHEN: From the 1st February 2024 no VAT will be charged for battery storage systems or energy diverters being retrofitted to Solar PV systems.
WHY: The expanded VAT relief aligns with the UK’s commitment to reducing carbon emissions and promoting green energy solutions. By offering financial incentives for homeowners to invest in energy storage, the government is encouraging the adoption of cleaner technologies and facilitating a more sustainable approach to power consumption.
WHAT: The scheme includes
- Electrical battery storage
- Energy diverters retrofitted to Solar PV & Wind Turbines
- Water-source heat pumps.
WHO: The scheme applies to all residential customers (homeowners)
Which projects are included?
The VAT relief scheme applies to the following residential projects.
- Battery storage installed alongside solar PV (already current policy)
- Standalone battery storage
- Retrofit Batteries
- Installation of energy diversion devices such as immersion controllers.
What Are the Benefits of Home Battery Storage?
A home battery energy storage system allows you to store electricity for future use. This offers several financial benefits for homeowners, such as:
Time-of-use optimisation. If you are on a multi-rate tariff, such as Economy 7 or one of many new “Smart Tariffs”, you can charge your batteries during cheaper off-peak hours. During the day, you can then power your home using stored electricity rather than paying the higher daytime rate.
Increased self-consumption. Combined with domestic solar panels, batteries can be used to store excess self-generated energy rather than exporting to the grid. You can then power your home from your batteries at night, or on days when solar production is lower, such as in winter.
Environmental Impact: Utilising residential battery storage alongside renewable energy sources contributes to a substantial reduction in carbon emissions. By storing and using clean energy when needed, homeowners can minimise their reliance on fossil fuels, thus lowering their carbon footprint and contributing to a healthier environment.
Batteries can be installed as part of a solar PV system, used as a standalone technology, or retrofitted to existing solar panels & wind turbines. Thanks to the new tax reforms, all three types of battery installations are now exempt from VAT from February 2024.
Find out more about Solar Battery Stroage systems or get in touch for more information and a free no obligation quote.
