In a monumental leap towards a sustainable future, the United Kingdoms is set to embark on an energy revolution by removing the Value Added Tax (VAT) on battery storage, effective February 1, 2024. The governments ground-breaking decision not only underscores the government’s commitment to combating climate change but also heralds a new era of affordability and accessibility for clean energy technologies.

The governments response to the increasing pressure to remove VAT was the following: “The government will be making the following reforms to the VAT relief on the installation of qualifying ESMs. The government will be expanding the relief by bringing the following technologies within scope:

The relief will also be extended to the installation of all qualifying ESMs in buildings used solely for a relevant charitable purpose and will continue to apply when these ESMs are installed in residential buildings”.

Battery storage plays a pivotal role in the integration of renewable energy sources, such as solar and wind, into the national grid. With the removal of VAT, businesses and homeowners are now incentivized to invest in energy storage solutions, enhancing the grid’s capacity to store and distribute clean energy efficiently. The move to eliminate VAT on battery storage puts power back into the hands of consumers and prosumers (those who both consume and produce energy). Homeowners with solar panels, for instance, can now maximize their energy independence by storing excess energy generated during the day for use during peak demand periods or at night. The full announcement can be read here

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