VAT output for power storage projects

4 FAQs about [VAT output for power storage projects]

When will the VAT charge be removed for battery energy storage systems?

As of 1 February 2024, the UK government has removed the VAT charge for domestic battery energy storage systems (BESS) under any circumstance. The policy change, initially announced in December 2023, followed a lengthy campaign by both Solar Energy UK and parliamentarians to include retrofitted BESS in the 20% tax exemption.

What is a battery energy storage system?

Battery energy storage systems (BESS) are often referred to as the game changer when it comes to delivering clean energy. Since 2005, the emergence of renewable energy resources like solar and wind has increased the intermittency of energy on the grid and the need for a resource to stabilize generation.

What is the Value Added Tax (installation of energy-saving materials) order 2024?

The Value Added Tax (Installation of Energy-Saving Materials) Order 2024 applies to BESS which are retrofitted to an existing installation and will continue to include them until 31 March 2027.

Can a solar-powered home benefit from a tax cut?

More than 1.2 million solar-powered homes are now able to benefit from the tax cut, alongside the inherent advantages of a BESS as a solar power feature, storing power after the sun sets and significantly increasing financial savings on energy bills.

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  • UK government scraps VAT for all domestic BESS installations

As of 1 February 2024, the UK government has removed the VAT charge for domestic battery energy storage systems (BESS) under any circumstance.

  • UK government scraps VAT for all domestic …

As of 1 February 2024, the UK government has removed the VAT charge for domestic battery energy storage systems (BESS) under any circumstance.

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