UK plans to reduce value-added tax on residential energy storage batteries
The UK government is currently planning to waive the Value Added Tax (VAT) on residential battery energy storage related to newly installed and subsequently supplemented rooftop solar systems.
Our committee has raised the issue of value-added tax on batteries assembled after the installation of solar panels several times, "said Hon Philip Dunne, Chairman of the UK Environmental Audit Committee. Therefore, I am pleased that the government has considered this issue in its negotiations on value-added tax for energy-saving materials, and the committee will also emphasize our arguments on this issue to the Chancellor of the Exchequer
The committee did not specify when this new measure will take effect. This value-added tax measure means that in the next five years, battery energy storage as part of the installation of qualified materials will benefit from a zero value-added tax rate, "a document states that the government has implemented all these measures to support residential photovoltaics.
These include recommending the installation of solar photovoltaic in new residential buildings as a minimum requirement, setting more ambitious installed capacity targets in the 2035 plan, and other proposals to address skills and supply chain issues. The British government has reduced the value-added tax on rooftop photovoltaic and heat pumps to zero in March.
