0% VAT on Heat Pumps & Solar Ends 31 March 2027 — Act Now
Solar, batteries, heat pumps, insulation and controls at 0% VAT until 31 March 2027 — then 5%. Here's what it's worth
2026
The 0% VAT window on energy-saving materials is one of the most valuable incentives ever offered to UK homeowners — and it closes on 31 March 2027. After that date the rate steps up to 5%. If you're planning solar, a battery or a heat pump, the maths says do it before the deadline.
What Stays 0% Until 31 March 2027
- Solar panels
- Battery storage (including standalone batteries)
- Heat pumps
- Insulation
- Heating controls
The zero rate applies to the supply and installation of eligible energy-saving materials. From 1 April 2027 these move to the 5% reduced rate — still generous compared with the standard 20%, but a real increase on today's prices.
What It's Worth to You
- About £500 saved on a £10,000 job
- £1,000–£1,400 saved on a typical solar installation
VAT is charged on the total supply and installation cost, so the saving scales with your project. A £10,000 heat pump job currently carries £0 VAT; after April 2027 it adds £500. On a typical 8-12 panel solar install with battery, the saving is £1,000-£1,400 — real money that stays in your pocket.
Four Money Events on 31 March 2027
- 0% VAT ends — energy-saving materials move to 5%
- The £9,000 BUS uplift for off-gas homes ends
- EV first-year allowance changes
- The Warm Homes Scheme funding window closes
31 March 2027 isn't just a VAT date. Several incentives expire together, which is why accredited installers' diaries fill up months ahead. Stacking these incentives this year is the cheapest way to decarbonise your home.
Why Completing Before the Deadline Matters
The date that counts is when your installation is completed and invoiced — not when you signed the contract. That means booking early: MCS-certified installers are finite in number, and their calendars fill well ahead of the deadline. A project you want finished in March 2027 needs to be booked, surveyed and ordered long before.
MCS Certification Timeline
To qualify for the BUS grant and the VAT relief, your installer must be MCS certified and the system must be installed to MCS standards, with the installation notified to Building Control. Allow six to twelve weeks from survey to commissioning — so a project you want completed by 31 March 2027 should start in January at the latest.
Compliance & Certification
All our renewable installations are delivered with MCS-certified partners and NICEIC-registered electricians, installed to current standards:
We handle certification, notifications and grant paperwork so your 0% VAT purchase is completed on time.
Beat the 31 March 2027 Deadline
Book your survey now to complete before the 0% VAT window closes — and stack the BUS grant while it lasts.
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