Is there no VAT on Solar Panels?
No. There is no VAT on solar panels.
The UK government has announced a major change to the Value Added Tax (VAT) on solar photovoltaic (PV) and other energy saving materials from 1 April 2022 to 31 March 2027. This is a move that has been welcomed by many, as it is seen as a major step forward in the fight against climate change and the promotion of more sustainable practices.
The new plan will see the VAT on solar PV and other energy saving materials completely scrapped during this five-year period. This will make it much easier for people to access these materials and technologies, as the cost of the materials will be reduced. This is especially important for those on lower incomes, who may not have been able to afford the materials before.
The good news doesn't stop there. After this five-year period, the VAT will return to a flat rate of 5%. This is significantly lower than the complex threshold that was previously in place, which made it much more expensive and complicated to access these materials. This new flat rate will make it much easier and more affordable for people to get the materials and technologies they need to make their homes and businesses more energy-efficient.
The UK government's move to scrap the VAT on solar PV and other energy-saving materials is a major win for sustainability. Not only will it make it easier and more affordable for people to access these materials, but it will also help to reduce emissions and promote greater energy efficiency in homes and businesses across the country.
HSB Renewable Energy is a leading provider of solar power solutions in North Wales. We offer a wide range of services to homeowners and businesses, including:
Solar PV installations for homes
Solar PV installations for businesses
Solar PV maintenance and repairs
Solar energy equipment suppliers
Please contact us for a FREE now obligation survey and a quote.
