From 1st February 2024, the UK Government will introduce VAT relief for electrical battery storage, essentially meaning a 20% discount on this energy saving domestic equipment.
In 2022, electrical battery storage was exempt from VAT, but only when installed with other energy saving systems, like solar panels. Now, you can benefit from the VAT exemption without having to invest in solar panels or other green tech at the same time.
The Government Summary of Responses on this subject says the following:
‘’All of these reforms will apply across the whole of the United Kingdom as a result of the Windsor Framework. These reforms will also be permanent, meaning that, when the zero rate aspect of this relief sunsets on 31 March 2027, the installation of all technologies in scope of this relief will revert to the reduced rate of VAT at 5%.’’
This VAT relief will hopefully offer more accessibility for people to install new energy-saving technologies, without the dependency on having to fit other eco tech systems for the reduced costs.