VAT relief
Installing solar panels in homes is zero-rated for VAT from 1 May 2023 to 31 March 2027. Since 1 February 2024 the relief has also covered batteries that store electricity, and from 1 April 2027 these installations revert to 5% VAT (HMRC VAT Notice 708/6).
Getting paid for exported electricity
The Smart Export Guarantee (SEG) means licensed electricity suppliers pay you for electricity you export to the grid, for eligible installations up to 5 MW (or 50 kW for micro-CHP). Ofgem advises shopping around for the best SEG tariff (Ofgem). Suppliers usually ask for proof that the system was installed under MCS or an equivalent scheme.
Planning permission
In England, Class A of Part 14 of the General Permitted Development Order allows solar PV and solar thermal on houses and outbuildings without a planning application, within limits on how far panels project and where they're fitted. Extra limits apply in conservation areas, World Heritage Sites and on scheduled monuments, and the rules have recently been amended (GPDO Part 14). Check with your council, especially for listed buildings and ground-mounted arrays.
Solar and power cuts
A standard grid-tied solar system shuts down during a power cut for safety. If you want backup power, ask installers specifically about a battery with an emergency power or off-grid function. See our off-grid power page.
Questions to ask installers
- Is the installer MCS certified, and will the system qualify for SEG?
- What's the expected annual generation, and how was it calculated?
- Does your roof need repairs first? Doing them before the panels go on is cheaper.
- Have bats been considered? Roof work can affect bat roosts, which are protected (Natural England).
Frequently asked questions
Is there VAT on solar panels?
Installing solar panels and battery storage in a home is zero-rated until 31 March 2027, then 5% from 1 April 2027, according to HMRC.
Do I need planning permission for solar panels?
In England most roof-mounted panels on houses are permitted development under Part 14 Class A of the GPDO, within limits. Conservation areas, listed buildings and ground-mounted systems need extra checks.
Will solar panels work in a power cut?
Not usually. Grid-tied systems switch off when the grid fails. You need a battery or inverter with a backup function, which an installer can set up.