Securing 0% VAT on battery install

Boffinboy24

Exiled_Tyke said:

In which case I would definitely ask the installer whether you get away without buying an inverter.

Yep, going to give the company that installed first array a call this week. Wanted to canvas ideas given I’m not certain about the very undersized inverter they installed for current array. 

mcn99

Please update us, to what u eventually find/do

I am in a similar position, I had panels installed in January and  decided to wait some time before adding a battery.

I have a 8kw inverter with 8.6kw panels, and don't get much output clipping,  so was thinking of extending adding more panels with a new battery (I have plenty of roof space available), but don't know the 0% vat rules.

Initial idea was to just wait for a few years and see if battery price drops to make it worth while. But the vat change plus deciding not to buy an EV this year has made me think again.

EcoScruples

Think you still need panels as well to get the zero VAT on the battery unfortunately (I maybe wrong though).
Still might be worth just going battery though with the electricity prices as they are, depends on how you see the value, are you focused on payback or like me do you see the energy going out to grid as a waste. I want to use every KW I produce.

arty688

I think the question is can you add panels and a battery to an existing system with 0% VAT or does it have to be another separate system to get 0% vat.

Boffinboy24

arty688 said:

I think the question is can you add panels and a battery to an existing system with 0% VAT or does it have to be another separate system to get 0% vat.

In my case my array is significantly - nearly 50% - oversized (inverter undersized) so I can’t add a panel because it will take the inverter over max rating. Given that, I’m afraid mcn99 I won’t get the answer to your specific question (if adding panels alone qualifies) - but I would assume not.

With the sizing difference I should probably gain a bit from faster ramp up in morning and longer production at night vs if I had a bigger inverter, as well as on very cloudy days with low light. It clips badly currently when it’s very clear, sunny and cool, but let’s see how it is with hot panels in the summer, it should presumably clip less. I did push the installer on the inverter sizing but they were confident that it would not be a huge overall difference in production, and at the time saved meaningful enough costs to offset the benefit. 

My rationale for considering a battery exactly the same as yours - I did the sums and decided I was going to wait for battery costs to come down and planning an electric car, but am no longer going to be doing that this year. So with the VAT change, current electricity pricing, and finding myself (irrationally!) frustrated I am exporting a lot, I figured I’d explore again. It’s a bit stuck in my mind! I would like a reasonable chance of it paying for itself and generating some return within its lifetime (which I know actually means it’s costing money vs saving/investing the money) but I also enjoy the tech element. 

gefnew

From another thread.
Indeed.  As mentioned by others, HMRC has state on its community forum that batteries as part of a new system installation will qualify but not as batteries on their own. VAT Solar Batteries - Community Forum - GOV.UK (hmrc.gov.uk)