The recent decision by the UK government to reduce VAT to 0% on residential battery-only installs from 1st February, 2024, is expected to have significant implications for homeowners. It is anticipated that this move will lead to increased adoption of battery storage technology across the country, aligning with the government's efforts to promote renewable energy and decrease carbon emissions. By making battery-only installations more affordable, the aim is to incentivise the transition towards sustainable energy solutions. This not only benefits homeowners in terms of cost savings but also contributes to a greener and more environmentally friendly future.
Moreover, the VAT cut will likely stimulate innovation and competition within the UK battery storage market, leading to technological advancements and improved efficiency. This could result in new opportunities for investment and job creation in the renewable energy sector.
For those utilising feed-in tariffs (FIT), this reduction in VAT on battery-only installs will be of particular interest. These properties will finally have a VAT-free retrofit storage option which doesn't complicate their payments under FIT rules. It will reduce their reliance on grid power by enabling them to store excess solar-generated energy for use during non-sunlight hours. Homeowners and businesses can maximise their energy savings through this while potentially also selling excess stored energy back into the grid during peak demand periods.
The National Grid benefits too as more properties become self-sufficient during peak times, there should be less surge demand putting a strain on the system. In recent months there have been incentives for reducing energy use during these key periods and battery owners have had the opportunity to cash in further by exporting power at up to £4 KWh!
At Elementary Solar, we are at the forefront of these exciting developments. As approved installers trained by the leading manufacturers in their products and implementation, we are equipped to help our customers take advantage of the best
products for their requirements. Our team holds MCS accreditation for safe battery installation practices along with providing a 5-year insurance-backed workmanship warranty. This ensures total peace of mind for years to come.
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