Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential merits of reducing the rate of VAT payable on solar panels and battery storage installation.

This question was answered on 13th December 2021
The Government maintains a reduced rate of VAT of 5 per cent on the installation of many Energy Saving Materials, including solar panels, subject to certain conditions. Battery storage installation may qualify for the reduced rate of VAT when supplied as part of an installation of qualifying goods.

Extending the current relief would impose additional pressure on the public finances, to which VAT makes a significant contribution. VAT raised around £130 billion in the year 2019-20, and helps to fund key spending priorities, including on health, education, and defence.