• The REA has welcomed today’s announcement to extend VAT relief for the installation of electrical battery storage;
• As battery storage is a critical technology for both delivering decarbonisation and bringing down energy bills, the REA states that this is an important policy win;
• The REA now urges government to work towards seeing a fair tax treatment across all low carbon technologies.

The REA (Association for Renewable Energy and Clean Technology) has welcomed today’s announcement from government to provide VAT relief on the installation of battery storage systems within people’s homes.

This has been a long-term call of the REA’s for two years, having met with Treasury several times and coordinated cross stakeholder letters calling for this amendment.

This announcement aligns the VAT treatment of battery storage with other energy saving materials, ensuring that VAT is zero rated when households are looking to improve their energy efficiency.

Dr Nina Skorupska CBE, Chief Executive of the REA (Association for Renewable Energy and Clean Technology) said:

“The REA welcomes that government have announced their intention to provide VAT relief on the installation of battery storage systems within people’s homes. This finally aligns the VAT treatment of battery storage with other energy saving materials, ensuring that VAT does not need to be paid when households are looking to do the right thing. Battery storage helps households to improve their energy efficiency, as well as make the most of other onsite generation technologies like solar panels and heat pumps. As such, it is a critical technology for both delivering decarbonisation and bringing down energy bills.

“This has been a long-term ask of the REA, and an area of unequal tax treatment that we are happy to see finally be resolved.

“However, the Government should consider how they could go further. It is disappointing that further energy saving materials, such as thermal storage and EV charging points, will continue to have the higher rate of VAT applied. Government should work towards seeing a fair tax treatment across all low carbon technologies as soon as possible.”

—ENDS—