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Last updated: 17 May 2021

VAT on Solar Panels To Increase on October 1

How the New 20% Solar VAT Will Affect You

Soon after the British parliament announced an environmental crisis, HMRC declared that from 1 October the VAT for installing photovoltaic systems will increase from 5% to 20%. The UK government also has solar panel grants available that incentivise the transition to renewable energy.

According to the House of Commons briefing paper, the new changes are applied in order to comply with the European VAT legislation.

This action will result in higher costs for installing solar panels and would therefore make the period for returning your investment longer.

However, the new rules will not affect supplies and contracts created before 1 October. Therefore it is a good decision to get your solar panel system before the enforcement of the new VAT law.

If you are ready to invest in solar panels, then simply fill in the contact form and GreenMatch will provide you with up to four quotes from trusted suppliers in the UK. This service is completely free of charge and without obligations!

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Natalie Kunz
Written by Natalie Kunz, Content Manager

Natalie is the Content Manager at GreenMatch. She is educated in media & communications, and has several years of international experience in marketing and content creation. Natalie’s focus lies in the areas of finance, sustainability, business communications, and more. She and her content team have been published in reputable sites like EcoWatch, Sunday Post, Earth911, and more.