Solar Power: VAT
The question
To ask the Chancellor of the Exchequer, whether he plans to levy VAT on plug-in solar panels installed by (a) householders and (b) electricians.
Answered by Treasury
Installations of qualifying energy-saving materials (ESMs), including solar panels, in residential accommodation and buildings used solely for a charitable purpose benefit from a temporary VAT zero rate until March 2027, after which they will revert to the reduced rate of VAT at five per cent.
This relief applies to installations rather than retail sales of the materials. Therefore, if solar panels are purchased and installed by householders themselves, the VAT relief does not apply.
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