Only 5% VAT on installation
Unlike other energy system installation such as Oil boilers, Gas boilers, and Central heating, a Photovoltaic energy system installation will only include 5% VAT.
This is quite a saving compared to the 15% (soon to go back to 17.5%) VAT charged for most other things.
The type of saving this creates is the difference between standard VAT rate and the 5% VAT rate. For a 3kWp photovoltaic system this saving could equal around £1,400
The 5% VAT is applicable on both the photovoltaic panels and equipment and the installation.