Solar Installs VAT Conundrum

Gezmonder

Hi,

I've recently had a quote of 8.5k for a small solar (1.6kW) PV system and a 8kWh battery with 0% VAT applied.

I already have an old PV on a feed in tariff on my main roof, so only have room for a small 4 panel system on the flat garage roof - the main purpose being the battery which can charge off peak to be consumed at peak with the small solar array just topping it up along the way.

Anyway, the issue I have is that as well as making a decent margin on the kit, the installer is also has a breakdown of 2.3k in labour (included in the above 8.5k). This seems seems pretty incredible to me for will take two guys 1 day to complete at best, even 1k would be a lot but just about acceptable.

I'm quite happy to do the work myself and pay a qualified electrician to commission it at the end for a single day rate, so 250-300 or similar. However, it seems as though as I'm not a a registered installer supplying to a customer, I have to pay the VAT. So I'm stuck at either paying the government 1k or so or one of these rip off solar companies over 2k. Seems as though this VAT break is a scam between the government and the solar industry.....

Anyone else managed to get a DIY system with 0% VAT or found a decent solar company that doesn't want to rip you off?

arty688

Have you tried getting other quotes? Also you could ask how they have come to the £2.3k for labour .

Gezmonder

I did get another quote but it was even worse and no bill of materials or labour costs, just one (high) price.

Spies

Try eco-renewables

Gezmonder

Spies said:

Try eco-renewables

Thanks, but looks like they are in the North and I am in the Beds/Bucks area

Spies

Gezmonder said:

Spies said:

Try eco-renewables

Thanks, but looks like they are in the North and I am in the Beds/Bucks area

They're nationwide 

QrizB

Gezmonder said:

Anyone else managed to get a DIY system with 0% VAT or found a decent solar company that doesn't want to rip you off?

A DIY system with zero VAT isn't going to happen unless you find a fraudulent supplier. And VAT fraud isn't something we can encourage (it's against the forum rules, for a start).
However the parts for a 1.6kW four-panel system should be around £1k and an 8kW battery under £4k, even including 20% VAT. £5k << £8.5k?

Petriix

The truth is that demand is high, there are supply chain issues, and installers are inflating prices accordingly. Unfortunately there always seems to be a steady stream of customers willing to pay the inflated prices so there's no real incentive for anyone to charge less. 

Yes, £8.5k is a massively inflated price. No, you might not find a better price at the moment. 

Gezmonder

Petriix said:

The truth is that demand is high, there are supply chain issues, and installers are inflating prices accordingly. Unfortunately there always seems to be a steady stream of customers willing to pay the inflated prices so there's no real incentive for anyone to charge less. 

Yes, £8.5k is a massively inflated price. No, you might not find a better price at the moment. 

Yes, indeed I understand that.

I'm looking at a Voltacon system now for 7.5k with all the bits with and 12kwh of batteries which can be easily expanded, extra 800w of solar as well.

Gezmonder

I asked the company that quoted me about the labor and markup costs and they sent me back what may be, quite a long a boiler plate response which essentially boiled down to:

• The pricing is not up for negotiation
• They are running a business

They are just in the right business at the right time I guess and fair play for that, but I won't be paying these prices.

arty688

They are right as a business you charge as much as someone will pay regardless of how much it costs you. At the moment I guess they don't need your business.