Are you thinking about new solar panels or solar panel installation? There have been plenty of unfavourable events taking place for homeowners, such as the energy price crisis, the rising cost of living, and the impact of global events on the UK energy market. Still, the good news is that the UK Government’s plans for the Spring 2022 regarding solar panels are staying intact.
What Is The Latest UK Government Decision On Solar Panel Installation?
- N0% VAT on batteries/domestic energy storage when installed with solar PV panels (1st April 2022 until 31 March 2027)
- N- 20% VAT still applies on retrofit or standalone batteries
Before this Government announcement, solar panel systems (which include solar panels, solar panel installation and solar panel batteries) were subject to a VAT rate of 20%. Solar panel installations were subject to a reduced rate of 5% VAT for certain people on benefits, or if the cost of the products or materials was not over 60% of the total cost of the installation. However, since Spring 2022, the government has removed VAT for everyone – and this is set to continue. Great news for anyone considering a new solar panel system.
By removing the VAT, more people across the country will be incentivised to purchase solar panels, which not only reduces the amount of money in your monthly bill but also has environmental benefits by shrinking household carbon emissions.
Why Is The Government Removing VAT on Solar Panels?
The government removal of VAT on solar panel installations is part of a greater mission to help households and businesses during the energy crisis. By investing in solar panels, British people are given a way to reduce their gas and electricity bills.
Since 2011, solar panel costs have fallen by 50% and could save the average homeowner £330 a year on energy bills. That’s the equivalent of £6,600 over 20 years of having a solar panel system installed.
Are You Looking For A Solar Panel System?
Here at Tile Energy, we are thrilled with the Government’s decision to cut VAT on installing energy-saving materials in residential properties from 5% to 0% until 31 March 2027. We are also very pleased to confirm that the zero rate VAT applies to all our domestic energy storage solutions when installed with solar, although retrofit or standalone batteries will still be subject to 20% VAT.
If you’re looking to get a solar panel system fitted on your property, choose Tile Energy. Our experts will work directly with you to assess, design and implement the perfect solar panel installations for you and your home or business.
Get in touch to find out more, and book your solar panel installation today.
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