Effective 1 February 2024, the UK government has exempted retrofitted battery energy storage systems (BESS) from the 20% VAT. This recent and welcomed development means homeowners looking to upgrade their homes with energy storage now enjoy the same tax benefits as those incorporating energy-saving materials like heat pumps and roof-mounted solar.

Initially, from the Spring Statement in 2022, domestic equipment such as heat pumps and roof-mounted solar benefitted from a 20% VAT exemption. While BESS was also included in this exemption, it was limited to installations and other energy-saving materials.

However, in a recent announcement, the government has broadened the scope of VAT relief to include retrofitted BESS, irrespective of other energy-saving materials. This change allows more homeowners to enjoy the financial incentives of adopting battery storage systems.

Duncan Booth, Managing Director of ORKA Solutions, comments on this pivotal update: "The government's decision to exempt retrofitted BESS from VAT is a game-changer. It removes barriers and encourages more homeowners to move towards cleaner, sustainable energy. This move supports individual households and contributes to a greener and more resilient energy landscape for all."

What Does This Mean for Homeowners?

This expanded VAT exemption further reduces the financial barriers to adopting battery storage, making it an even more accessible and affordable option for homeowners. The government's commitment to incentivising cleaner energy solutions aligns with the broader mission of creating a more sustainable and eco-friendly future.

ORKA is a leading sustainable energy solutions provider specialising in commercial and residential Solar PV, Battery Storage and EV Charge Point installations. Learn more at


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