Efficient Feb. 1, the UK authorities has exempted retrofitted battery power storage methods (BESS) from the 20% worth added tax (VAT).
Residential BESS at the moment are exempt from VAT in the UK when put in both new or retroactively at the side of rooftop photo voltaic methods.
Beforehand, VAT aid was solely accessible for home BESS if put in along with a brand new photo voltaic power system. As of Feb. 1, a VAT zero fee may also apply to retrofitted residential BESS.
The VAT aid additionally applies to BESS when put in in charitable buildings.
Extending zero-rating VAT aid to cowl retrofitted BESS follows important photo voltaic trade campaigning. In response, the UK authorities introduced in December that it might broaden its VAT aid for energy-saving supplies (ESMs) to incorporate all home BESS.
Water-sourced warmth pumps and sensible diverters have been additionally zero rated as a part of the change.
“The lower in VAT is exceedingly welcome and we’ve got each expectation that it’ll enhance demand for dwelling battery power storage,” mentioned Chris Hewett, chief government of commerce affiliation Photo voltaic Vitality UK. “By permitting solar energy for use after darkish, it could double the financial savings supplied by dwelling solar energy methods. There has by no means been a greater time to improve than right now.”
The UK has already exempted a raft of power and warmth associated know-how from VAT, together with photo voltaic panels, wind generators, air-sourced warmth pumps, insulation, draft stripping, central heating and sizzling water controls, micro mixed warmth and energy items, and wood-fueled boilers.
The VAT zero ranking for energy-saving supplies is scheduled to run till March 31, 2027.
Saying the adjustments to VAT aid in December, Nigel Huddleston MP, monetary secretary to the Treasury, mentioned zero-rating energy-saving supplies “will permit extra households to put in ESMs, enhance the power effectivity of their houses, and thereby scale back their power payments.”
This content material is protected by copyright and is probably not reused. If you wish to cooperate with us and want to reuse a few of our content material, please contact: editors@pv-magazine.com.
