Battery Storage Installers in Wiltshire

Think it Through

One of the big ticket items to consider with battery storage is VAT.

How you MIGHT be able to get VAT applied at 5%

If you have battery storage installed at the same time as solar panels, then VAT might be applied to the whole installation – including batteries – at 5%. This can make a huge difference to the overall price you pay. It could cost you £1,000 or more if VAT is at 20% rather than 5%.

Please note: if you have battery storage put in on its own (without solar panels), then VAT is always applied at 20%.

So, if you're thinking about having solar panels put on and batteries installed more or less at the same time, make sure you have both installed together, using one installer only, to stand a chance of getting the 5% VAT.

Why you will PROBABLY end up paying VAT at 20% on the materials

The reason why you might not get 5% VAT applied to the battery is that the VAT rules changed on 1 October 2019. The new rules state that:

• If the cost of the solar and battery materials together is 61% or more of the entire invoice, then VAT has to be applied at 20% on the materials (fortunately labour is still assigned 5% VAT).

Generally, as there is so much hardware to be installed during a solar + battery installation, the materials component is nearly always 61% or greater and you'll end up paying that 20% VAT on the materials.

However, by installing solar panels and a battery at the same time with the same installer, you will benefit from 5% VAT on the labour component of the battery installation. That's at least something.

Solar Battery Storage

Ask your installer to show you their accreditation certificate for the battery technology they are installing, whether Tesla Powerwall, Sonnen Battery, Powervault, or other. Not all manufacturers demand it, but best to be on the safe side.

Remember: solar panel battery storage allows you to capture excess solar electricity that would otherwise escape to the grid. You can then draw on that stored solar electricity in the evenings or at night when the sun isn't shining. Solar Panels + Battery Storage = being more energy independent.

Finally, for a comprehensive overview of battery storage and how it can complement an electric car, please see our main Battery Storage page.