During the Spring Statement 2022, the Chancellor announced a significant change in VAT for installing energy-saving materials (ESMs) in residential properties in NI. From April 1, 2022, until March 31, 2027, the VAT rate on eligible installations, including solar systems, is reduced to 0%, down from the previous range of 5% to 20%. In February 2024, this incentive moves to cover all renewable energy systems including battery storage. Making battery storage systems 0% from 1st February 2024.
Super savings on battery storage systems
Reduced VAT Rate
The reduced 0% VAT rate applies to various domestic energy efficiency and renewable energy installations, such as solar, listed under the government’s Energy Saving Measures (ESMs).
Duration
The reduced rate is effective from February 1st 2024, to March 31st, 2027, unless further legislation extends its implementation.
Solar Systems
Solar thermal and PV systems are now subject to 0% VAT in NI when supplied and installed as part of an eligible installation.
Batteries
Batteries qualify for 0% VAT in NI when part of an installation with a qualifying material, such as a solar system. However, from the 1st February 2024 standalone battery installations also qualify for 0% VAT
What does this mean for me?
The VAT change is expected to contribute to the deployment of residential solar PV, solar thermal, and energy efficiency measures, supporting the UK’s net-zero goals.
Energy Storage
Solar Power NI advocates for including batteries on the list of ESMs to qualify for zero-rated VAT, creating a level playing field for standalone residential energy storage.
Looking for battery storage?
Enjoy savings on battery storage now with 0% VAT for all new installations as of 1st February. Get in touch now for a quote!
