VAT on energy-saving materials (0% until March 2027)
Updated 1 October 2026 · UK rules · Not tax advice: check anything unusual with your accountant.
Installing energy-saving materials in a home is zero-rated for VAT until 31 March 2027. From 1 April 2027 it's due to go to 5%. If you quote for these jobs, the rate on your quote depends on the date.
What counts as energy-saving materials
| Installation in a home | VAT until 31 Mar 2027 | From 1 Apr 2027 |
|---|---|---|
| Solar panels | 0% | 5% |
| Battery storage (with or without solar, since 1 Feb 2024) | 0% | 5% |
| Air, ground, water source and groundwater heat pumps | 0% | 5% |
| Insulation for walls, floors, ceilings, roofs and lofts | 0% | 5% |
| Draught stripping for windows and doors | 0% | 5% |
| Central heating and hot water controls | 0% | 5% |
| Wind and water turbines, micro combined heat and power | 0% | 5% |
| Wood-fuelled boilers | 0% | 5% |
Gas boilers aren't on the list, so replacing one is generally standard-rated at 20%. EV charge points aren't energy-saving materials either.
What the 0% covers
The relief applies to the installation: your labour and the qualifying materials you fit as part of the job. If a customer just buys materials from you without installation, they're standard-rated. Work that isn't part of fitting the energy-saving materials, like redecorating afterwards, is charged at its normal rate.
Quoting across the 1 April 2027 change
The rate that applies depends on the tax point, usually when the work is done or paid for. If you quote now for a job finishing after 31 March 2027, the VAT could be 5% instead of 0%. Say so on the quote, or quote for the rate that applies on completion.
BrewQuote keeps a dated VAT table: lines marked as energy-saving are 0% until 31 March 2027 and switch to 5% automatically from 1 April 2027, so you never send a quote at the wrong rate. Rules are summarised from HMRC's VAT Notice 708/6. Check unusual cases with your accountant.
Frequently asked questions
Is VAT on solar panels 0%?
Yes, for homes. Solar panels installed in residential accommodation are zero-rated as energy-saving materials until 31 March 2027. From 1 April 2027 the rate is due to become 5%.
Are heat pumps zero-rated for VAT?
Yes. Air source, ground source, water source and groundwater heat pumps installed in homes are zero-rated until 31 March 2027.
Does the 0% rate cover the labour?
Yes. When you install energy-saving materials in a home, the installation service and the qualifying materials you fit are both zero-rated. Materials sold without installation are standard-rated.
Is battery storage zero-rated?
Yes. Since 1 February 2024, batteries installed in homes are energy-saving materials, whether they're fitted with solar panels, retrofitted to an existing system or installed on their own.
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