Government proposes major VAT hike for domestic solar installations

Madeleine Cuff
clock

Proposal to boost VAT rate from five per cent to 20 per cent likely to add £900 to the average cost of domestic solar projects, say campaigners

HM Revenue and Customs (HMRC) yesterday proposed a major tax hike for domestic solar panels and other green energy installations, after the EU ruled earlier this year the current level violated its laws....

To continue reading this article...

Join BusinessGreen

In just a few clicks you can start your free BusinessGreen Lite membership for 12 months, providing you access to:

  • Three complimentary articles per month covering the latest real-time news, analysis, and opinion from Europe’s leading source of information on the Green economy and business
  • Receive important and breaking news stories via our daily news alert
  • Our weekly newsletter with the best of the week’s green business news and analysis

Join now

 

Already a BusinessGreen member?

Login

More on Solar

Study: Global switch to advanced solar tech could avoid billions of tonnes of CO2

Study: Global switch to advanced solar tech could avoid billions of tonnes of CO2

UK-led study compares full lifecycle climate impact of current solar production with newer, more advanced technology, finding the latter offers potential for huge carbon savings

clock 17 February 2026 • 4 min read
Severn Trent Green Power unveils plans for new solar parks

Severn Trent Green Power unveils plans for new solar parks

Projects set to add around 180GWh of generation capacity once all four sites are online

clock 13 February 2026 • 2 min read
UK sets fresh record with 2.6 GW of new solar deployed in 2025

UK sets fresh record with 2.6 GW of new solar deployed in 2025

Solar roll out hits 10-year high, boosted by connection of largest project to date and ramping up of domestic installations

clock 30 January 2026 • 4 min read