Tesla Battery

20% VAT has been scrapped for battery storage so now’s a great time to look at adding a battery to an existing solar system.

The UK government has exempted retrofitted battery energy storage systems (BESS) from its 20% VAT, starting 1 February 2024.

Since the Spring Statement in 2022, energy saving domestic equipment such as heat pumps and roof-mounted solar have been exempt from VAT. BESS too were exempt, but only when installed alongside other energy-saving materials such as solar.

With the new ruling, the following will also now be included:

  • Standalone battery storage. – Projects in which a battery is fitted without supporting solar.
  • Retrofit batteries. – Projects in which a battery is retrofitted to an existing solar array.