The UK Government has announced that from 1st February 2024, retrofitted battery energy storage systems in domestic properties will be free of VAT. This is a monumental change, as it makes these innovative and environmentally friendly energy storage systems much more financially viable for many, helping the UK to take a step closer to achieving Net Zero by 2050.
Battery energy storage systems were previously free of VAT if bought in conjunction with Solar PV Panels – this new announcement enables homeowners to incorporate battery storage into their property retroactively. Users of solar panels can now manage their energy much more effectively with the inclusion of a battery storage system, reducing their reliance on the National Grid and encouraging the transition to a decarbonised society. The VAT reduction applies to both stand-alone battery systems and those fitted to work alongside solar panels.
Battery storage involves devices that harness energy from renewable sources, like solar power. The energy is then stored and can be utilised whenever you need it. Typically used alongside solar PV systems, it allows any surplus electricity generated by the panels to be stored to power your home even when your solar panels aren’t generating energy.
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To make the most out of this VAT exemption, homeowners should begin planning their battery storage system installations now. As the measure comes into effect from 1st February, installers will be getting busier and busier as the reform is implemented, so you could be left waiting for an available contractor and the sooner you install VAT-free battery storage in your property, the sooner you can enjoy savings on your energy bills!
At Ecosolv Renewables, we are keen to help as many clients as possible benefit from the savings possible as a result of this tax cut, so get in contact with our experts today for a free, no-obligation quote for a battery energy storage system. For more information about the many benefits of battery energy storage systems, visit our dedicated page and get a quote today!
