BESS Set to Lose the VAT

The 1st of February saw the VAT of domestic energy storage systems cut, following an announcement in December last year by the government and Solar Power UK who campaigned for a long time to get the VAT removed.

The zero-rating cut will run until 31 March 2027 with popularity of battery storage systems (BESS) likely to rise.

Chief Executive of Solar Energy UK…

…Chris Hewett has said;

The cut in VAT is exceedingly welcome, and we have every expectation that it will increase demand for home battery energy storage. Allowing solar power to be used after dark, can double the savings offered by home solar power systems. There has never been a better time to upgrade than today.

Chris Hewett – Chief Executive of Solar Energy UK

What is a BESS?

Battery energy storage systems, also known as BESS, do what they say on the tin; they store energy that is generated from renewable energy such as solar power. This energy is released when it is needed most.

Their importance is because, without sun, solar power can be reduced, therefore storing surplus energy is vital for when the time comes.

Useful applications for this technology could be to power a personal EV charging point or even a smart home. The device itself is much more than your everyday battery and has the power to capture charge and carry out the discharge.

What are the advantages of BESS?

There are a number of advantages that come with having a BESS, these are;

  1. Easy installation – perfect for households.
  2. Provide backup power when an outage occurs.
  3. Cuts the cost of electricity bills… You will be generating your own!
  4. Pay no VAT!

To Summarise

Until March 2027, no VAT payments will be required on BESS systems after a long-term campaign by Solar Power UK.

Now is the best time to get a BESS as popularity will rise due to the cutting of the VAT.

A storage system benefits the home thanks to its ability to store power and release it at vital times such as power outages and extreme weather events.

Billy Strickland
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