VAT on Battery Only Installations

7 comments started 2023-12-11 last 2023-12-12
GivEnergy ProductsBattery
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#2 Jellybaby

About damned time

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#3 kram

This is somewhat annoying…. Is the the date install starts or finishes I wonder?

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#4 T-M

kram Not sure, but I assume it's the invoice date, and we obviously need to wait a bit to see whether they actually follow through on their intention and the 01 February 2024 date holds

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#5 Niceguy

An excellent bit of news. I was thinking I'd have to add a couple of panels at the same time as buying a second battery, just to get zero VAT.

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#6 HipHopAst

Hmm. I was about to install 2nd battery to my setup but at the moment i think ill put it on hold. Its that mean its 0% VAT on 2nd battery or it will be only for new battery installs or someone with solar panels without battery? Is it mean that if you go to I.T.S or Midsummer you would buy it without VAT. Panels would be included? If its true for extra £400 i could have 8.2kwh instead of 5.2 so double capacity.
I was waiting for government positive response on Autumn statement as some source suggests bot nothing happens.
Now I collecting some quotes for battery installations and don't want to put it on hold just to find out that none of it its true or magically 5.5kwh battery will increase in price from today`s £1600 inc VAT to February price £1700 without VAT. Im sure it will so manufactures or resellers can grab even more money.

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#7 T-M

HipHopAst At this moment in time, all I can say is what the announcement states, that it is intended to come into force on 01/02/2024. Your guess is as good as mine as to whether it gets delayed or not.
It's actually described as "VAT Relief" so if it works like Solar PV, then I think you have to be VAT registered in order to claim the VAT back, which is what installers do quarterly I believe, so maybe we won't see the prices to consumers drop on wholesale sites like ITS, Midsummer etc. For that reason, it should be good news for installers as they can reduce their prices to consumers while maintaining their labour costs and margin etc, but I'm sure there will be some who will take the opportunity to skim a bit more profit. It'll be interesting to see how the industry reacts