Solar Panels UK - is it worth it?

[AndroidDave]

As above, pretty sure batteries remain at 20%:​

​

2.9 Energy-saving materials covered by the reduced rate​

Subject to one of the social policy conditions being satisfied or the 60% threshold not being exceeded, the reduced rate applies to the installation of the following energy-saving materials:

• controls for central heating and hot water systems ( paragraph 2.10)
• draught stripping (paragraph 2.11)
• insulation (paragraph 2.12)
• solar panels (paragraph 2.13)
• wind turbines (withdrawn on 1 October 2019, paragraph 2.14)
• water turbines (withdrawn on 1 October 2019, paragraph 2.15)
• ground source heat pumps (paragraph 2.16)
• air source heat pumps (paragraph 2.17)
• micro combined heat and power units (paragraph 2.18)
• wood-fuelled boilers (paragraph 2.19)

Pretty sure that page hasn't been updated. It says it was last updated 8 February 2021.

Not that it means batteries are included, but I'd wait to see an updated version first.

 

[Mrklaw]

Also crucially "or the 60% threshold not being exceeded" means that any battery on the installation would mean the PV panels wouldn't qualify for 0%. As the total hardware cost will exceed 60% (with installation/labour making up 40% ).

so its got *worse* than the current 5%?

 

[scdoubleu]

so its got *worse* than the current 5%?

What the bold print giveth, the fine print taketh away.

'Twas ever thus.

 

[dakaix]

so its got *worse* than the current 5%?

Well in fairness that was already the case before today, if materials exceeds 60% of the total cost then you pay 20% VAT on the materials (incl Panels), and just the labour gets 5% VAT.

I'm going to be proposing to my installer that they look to split this into two separate installations - PV first, and batteries to follow.

 

[Mr H]

Just get a hybrid inverter fitted and add the batteries later

 

[olej24]

From the wording of the statement it’s just solar. So does that mean if you’re having solar and batteries installed at once you still pay 5% on the battery and 0% on the solar? There was also an announcement on decarbonisation for businesses which includes solar and batteries.

 

[WannabeOwner]

Presuming it hasn't changed then anyone over 60, or on various benefits, had the 5% option (i.e. the 60:40 rule is waved)

 

[RedMod3]

Well in fairness that was already the case before today, if materials exceeds 60% of the total cost then you pay 20% VAT on the materials (incl Panels), and just the labour gets 5% VAT.

I'm going to be proposing to my installer that they look to split this into two separate installations - PV first, and batteries to follow.

If you are over 60, the VAT rate remains at 5%, or did irrespective of the Labour/materials split.

 

[94jdh]

From the wording of the statement it’s just solar. So does that mean if you’re having solar and batteries installed at once you still pay 5% on the battery and 0% on the solar? There was also an announcement on decarbonisation for businesses which includes solar and batteries.

My installer just sent revised invoice (as I questioned it on today's news) - all VAT removed.

 

[Avendit]

My installer just sent revised invoice (as I questioned it on today's news) - all VAT removed.

Wow! I was leaving mine a day or 2 for them to work everything out, apply it and then re-invoice!

 

[94jdh]

Wow! I was leaving mine a day or 2 for them to work everything out, apply it and then re-invoice!

Try and lock it in asap. I'm guessing that some will up the pre VAT prices to benefit and take advantage.

 

[Avendit]

Mine already all signed, so it should be pretty obvious if they try to play silly buggers

 

[Mrklaw]

Anyone gets confirmation this can apply to battery only, or battery + token solar please shout!

 

[btc1k]

Anyone gets confirmation this can apply to battery only, or battery + token solar please shout!

If the quoted install was 5% on the whole lot, then the new rate is 0%. So 0% charged as that is a VAT rate.

 

[roadcred]

As above, pretty sure batteries remain at 20%:​

​

2.9 Energy-saving materials covered by the reduced rate​

Subject to one of the social policy conditions being satisfied or the 60% threshold not being exceeded, the reduced rate applies to the installation of the following energy-saving materials:

• controls for central heating and hot water systems ( paragraph 2.10)
• draught stripping (paragraph 2.11)
• insulation (paragraph 2.12)
• solar panels (paragraph 2.13)
• wind turbines (withdrawn on 1 October 2019, paragraph 2.14)
• water turbines (withdrawn on 1 October 2019, paragraph 2.15)
• ground source heat pumps (paragraph 2.16)
• air source heat pumps (paragraph 2.17)
• micro combined heat and power units (paragraph 2.18)
• wood-fuelled boilers (paragraph 2.19)

That is the old rules last amended in February. Sunak actually implied in his speech that he was getting rid of all the hurdles and calculations so I supposed the whole of that directive was now for the birds? In which case it would apply to everything and everybody, no 60%, no social security , no older persons privileges. Maybe that wont be the case when the Civil Servants right the new Directive......

 

[olej24]

Wow! I was leaving mine a day or 2 for them to work everything out, apply it and then re-invoice!

My installer called last night to ask if I wanted to wait for him to send the invoice once more clarity is given

 

[Mrklaw]

That is the old rules last amended in February. Sunak actually implied in his speech that he was getting rid of all the hurdles and calculations so I supposed the whole of that directive was now for the birds? In which case it would apply to everything and everybody, no 60%, no social security , no older persons privileges. Maybe that wont be the case when the Civil Servants right the new Directive......

thats what it sounded like from the excerpts posted too - so 5% drops to 0%, wind and water added, and the qualifying removed (no 60+, no xx% of materials/labour).

Does still sound like batteries are left out so in theory if you get a solar + battery installed you should still be paying VAT on the battery materials, but labour should be zero rated, as would the materials for the solar PV/scaffolding etc?

 

[PITA]

thats what it sounded like from the excerpts posted too - so 5% drops to 0%, wind and water added, and the qualifying removed (no 60+, no xx% of materials/labour).

Does still sound like batteries are left out so in theory if you get a solar + battery installed you should still be paying VAT on the battery materials, but labour should be zero rated, as would the materials for the solar PV/scaffolding etc?

It's all pointless, because installers will just raise their prices anyway. I doubt anybody will see a practical reduction...

... just a massive increase when the scheme ends.

I bought all my kit a year ago, where I paid 5% VAT... But the costs were still way cheaper than if I did it today.

 

[94jdh]

It's all pointless, because installers will just raise their prices anyway. I doubt anybody will see a practical reduction...

... just a massive increase when the scheme ends.

I bought all my kit a year ago, where I paid 5% VAT... But the costs were still way cheaper than if I did it today.

Probably right with increasing prices by some companies, it only likely will benefit those ( like myself) who've just gone through the pricing exercises and are ready to place an order.

 

[Avendit]

What it hopefully does do is give the whole industry the confidence in demand to hire more people and secure supplies. TBH the publicity from yesterday and a government saying 'you should insulate and get solar' will probably have more impact on install rate than the 5% change in cost.