VAT rate on Batteries after solar install

Oh_No

Can someone confirm the VAT rate for batteries installed separately to solar panels ? I assumed 20% but someone told me its 5% so want to double check and when I googled all I found was talking about batteries with solar install at some time.

I am on the fence with regards to getting batteries installed as I just dont think they will work out cost effective but before I go ahead without a battery I just want to make sure I know where I stand.

2nd_time_buyer

You are right, they are wrong

jimjames

Just wondering on this, could you get 1 solar panel along with battery so you pay 5%? What are the requirements for the different VAT rates?

2nd_time_buyer

Apparently that is fine

"Is there a minimum solar array size required to constitute an install. For example, could I add a new array, say 1.2kW along with an inverter and battery/batteries (all zero rated VAT) and then connect an existing array to the battery/batteries, via a second (at 20% VAT) AC inverter? Thanks

  

Posted 2 months ago by HMRC Admin 17 

 

Hi. The guidance makes no minimum array size to constitute an install,or whether it should be a hybrid or string inverter. The guidance states: Solar panels include all systems that are installed in, or on the site of, a building and that are: solar collectors such as evacuated tube or flat plate systems, together with associated pipework and equipment, such as circulation systems, pump, storage cylinder, control panel and heat exchanger photovoltaic (PV) panels with cabling, control panel and AC/DC inverter Please see link below: Energy-saving materials and heating equipment (VAT Notice 708/6) . Thank you." from https://community.hmrc.gov.uk/customerforums/vat/543eb674-79af-ec11-826d-00155d9736d7?environmentid=302efd07-28d9-4d2d-b558-96167951ad6a&instanceid=00d5bcecb71b87e9bf9bb28925f315a4d8828005fa777a17f8bcba07500e665d&islandid=101&licensetype=Dynamics365&mscorrelationid=4be51398-a6d1-4ea1-88e3-9704db19a788&orgid=13212d7e-6a5d-4598-95ba-4a07545dbb67&portalapp=site-e1cfc2ea-2de6-4c96-8e99-76600a349358-UKw&portaldomain=https://community-origin.hmrc.gov.uk&portalid=e1cfc2ea-2de6-4c96-8e99-76600a349358&portalproductionortrialtype=Production&portaltype=Community Forums&portalversion=9.4.7.27&tenantid=ac52f73c-fd1a-4a9a-8e7a-4a248f3139e1&page=2

Oh_No

Thanks, that's interesting. I am pretty sure it would be cheaper than the VAT to buy an couple of panels and an inverter !

2nd_time_buyer

Oh_No said:

Thanks, that's interesting. I am pretty sure it would be cheaper than the VAT to buy an couple of panels and an inverter !

Perhaps if you hired and erected a mobile scaffold tower yourself.

Raxiel

One of the salesmen (who didn't recommend a battery) I spoke to recently suggested there's rumors the VAT for retrofit batteries may be scrapped in the not too distant future. Any truth to that? or just patter?

Screwdriva

If you subscribe to the theory that the Octopus Outgoing Agile SEG tariff is going to disappear for some unknown reason (despite the parent company repeatedly reaffirming that they are financially sound), then a battery may make sense if this were to happen. 

Otherwise, it would be financial lunacy to ignore a tariff that can (and is today) paying more than your cost of electricity import, essentially making the grid a "battery" that pays you. Then, there's the ethical argument about Chinese lithium being put into a home that doesn't need it vs. a car that does. Just a few things to mull over. 

 

94JDH

Screwdriva said:

If you subscribe to the theory that the Octopus Outgoing Agile SEG tariff is going to disappear for some unknown reason (despite the parent company repeatedly reaffirming that they are financially sound), then a battery may make sense if this were to happen. 

Otherwise, it would be financial lunacy to ignore a tariff that can (and is today) paying more than your cost of electricity import, essentially making the grid a "battery" that pays you. Then, there's the ethical argument about Chinese lithium being put into a home that doesn't need it vs. a car that does. Just a few things to mull over. 

 

My personal take on this might be to have agile for the 6 month period or so and move on to Go for the Winter period - obviously a battery is needed to benefit the latter( not withstanding potential EV). I'm guessing it's what best works for you and your generation and usage.

Nick_Dr1

Are these rates current? I thought Agile was basically maxxed out at 55p unit at the moment

QrizB

Nick_Dr1 said:

Are these rates current? I thought Agile was basically maxxed out at 55p unit at the moment

The chart is for Outgoing Agile.