Homeowners considering solar panels, battery storage or air source heat pumps are being encouraged to plan ahead, with the current 0% VAT rate on qualifying domestic renewable energy installations due to end on March 31 2027.
i-Protech says the change could have a noticeable impact on project costs for households looking to invest in renewable energy technologies.
Under current UK VAT rules, qualifying installations of certain energy-saving materials in residential accommodation benefit from a 0% VAT rate. This includes solar PV, air source heat pumps and qualifying electrical battery storage. From 1 April 2027, the VAT rate is currently scheduled to return to the reduced rate of 5%.
For homeowners already considering renewable energy, the change could affect overall project costs. On a qualifying installation costing £15,000 before VAT, a 5% VAT rate would add £750 to the final cost.
The VAT relief also applies to electrical battery storage, including batteries installed alongside a new solar PV system, retrofitted to an existing renewable energy installation or installed as standalone systems. As more households look to pair battery storage with lower-cost off-peak electricity tariffs, the ability to store cheaper energy for later use is becoming increasingly attractive.
According to i-Protech, correct system design remains an important consideration for homeowners exploring renewable energy projects. Solar PV and battery systems should be designed around a property's electricity consumption and usage patterns, while air source heat pump installations should include detailed assessments and heat-loss calculations to ensure systems operate efficiently.
The company is also seeing growing interest in integrated energy systems combining solar PV, battery storage, air source heat pumps and EV charging. When properly designed, these technologies can work together to maximise renewable energy generated at the property and reduce reliance on electricity imported from the grid.
With renewable energy projects often involving surveys, system design, quotations, grid connection requirements and installation scheduling, i-Protech says homeowners considering larger projects may benefit from starting the process early. As the deadline approaches, increased demand across the sector could also result in longer lead times. Under current legislation, qualifying installations are scheduled to move from 0% VAT to the reduced 5% rate from 1 April 2027.
Based in Westhill, i-Protech provides electrical, renewable energy, fire and security services across Aberdeen, Aberdeenshire and the wider north-east of Scotland. Alongside solar PV, battery storage, EV charging and air source heat pumps, the company also delivers commercial and domestic electrical works, CCTV systems, intruder alarms, access control, fire detection and alarm systems, together with servicing and ongoing maintenance. For homeowners already considering renewable energy, the scheduled VAT change is another reason to begin exploring the available options well before the current 0% rate is due to end.