Since the Spring 2022 Government announcement several energy saving solutions such as solar PV and heat pumps became exempt from their VAT until 2027. Battery storage solutions were included but only when installed alongside solar PV.
From the 1st February 2024 battery storage systems as a stand alone technology will also align with other energy saving technology in being exempt.
Following a consultation on the expansion of the VAT relief the government revealed:
“The government agrees with respondents, that this technology meets all of the stated objectives for this VAT relief in its own right, and will therefore bring electrical battery storage within the scope of the relief. This means that the technology will now also qualify for VAT relief when either retrofitted to a qualifying energy-saving materials, or installed as a standalone technology connected to the grid.”
This is a really great step in the right direction, theres hope that the VAT exemption will get pushed even further to include thermal storage and electric car chargers.
With the announcement of the Tesla Powerwall 3 imminent in the uk and new batteries being produced by the likes of Duracell its clear 2024 will be a big year for battery storage. Our future Newsletter will discuss batteries in more detail specifically exploring agile electric tariffs so make sure you subcribe to our newsletter!
