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 more if VAT is at 20% rather than 5%.

However, due to new VAT laws introduced on 1 October 2019, you may have to pay 20% VAT on materials, if you have solar panels and battery storage installed at the same time on one invoice. This is because you will go over a percentage threshold for materials. The new VAT rules are:

• 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).

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

It sounds bizarre, but a legitimate way to get round this VAT problem is for the installer to charge you more for the whole job. By increasing their profit, the materials' component of the invoice shrinks and you can slip below the 61% threshold. So the installer makes more money, but you end up paying hundreds of pounds less, as VAT gets applied at 5% rather than 20%. Bingo.

Sometimes better to put battery storage on a separate invoice

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

Because of the VAT changes mentioned above, if you do have solar panels and battery storage installed at the same time and can't get below the 61% materials' ruling, it generally works out cheaper to have the solar panel system invoiced @ 5% VAT and then battery storage invoiced separately at 20% VAT. You normally save between £200 and £300.

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.

You can also benefit from battery storage without solar PV panels. Batteries can be charged at night with cheap, off-peak electricity. That low-cost electricity can then be discharged to your home or EV during the day when rates are higher.

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