The UK Government has recently made another significant move towards making eco-friendly energy more affordable – this time they’re reducing the VAT on Battery Storage Systems to zero.
This new policy, set to be implemented from February 1st, 2024, not only means solar energy is becoming even more accessible, but it also means you have a limited time window to save money on your own installation.
How Much Can You Save?
The current UK VAT rate is 20%. This means that if you’re spending a net amount of £3,000 on battery storage for your solar panels, you’re going to save £600.
When you take into account that a solar setup is going to save you money on your energy bills in the long run, this extra saving makes going solar an even more attractive proposition.
To find out exactly how much you’ll save on an installation for your home, call a member of our team today on 01453 705915 and we’ll be happy to give you a quote.
You Don’t Need Solar Panels to Save Money with Battery Storage
You don’t actually need solar panels to take advantage of energy savings with battery storage.
Most energy suppliers offer cheaper electricity overnight or using off-peak hours as there isn’t as high of a demand.
For some suppliers, this may be as cheap as 10p per kWh off-peak compared to 28p during peak times.
With a battery storage system, you can store this electricity during the night and use it during the day saving you up to 2/3rds on your electricity bill!
Save Money by Adding Battery Storage to Your Current Installation
If you already have solar panels but don’t currently have battery storage, you’re likely wasting energy and losing money.
Solar panels produce the most energy when it’s not needed the most; during peak daylight hours.
Without batteries to store this surplus energy, it goes to waste. This can lead to substantial missed savings over months and years.
Now is the perfect time to add storage batteries to your current setup, it’s unlikely the government is going to offer a bigger reduction than 0% VAT.
Some of the Benefits of Solar Battery Storage
If you’re not sure why you need solar battery storage as part of your solar panel installation, some of the benefits of solar battery storage include:
Energy Independence: Solar battery storage allows you to store excess solar energy generated during the day for use at night or on cloudy days, reducing reliance on the grid.
Backup Power During Outages: In case of power outages, a solar battery can provide essential power to your home, ensuring continuity and convenience.
Financial Savings: Storing excess solar energy can lead to significant savings on electricity bills, as you can use your stored energy during peak times when electricity rates are higher, instead of drawing power from the grid.
Reduced Environmental Impact: Using solar energy stored in batteries reduces reliance on electricity generated from fossil fuels, thereby lowering your carbon footprint and contributing to a more sustainable environment.
Low Maintenance: Compared to other forms of backup power, such as generators, solar battery systems require minimal maintenance and are a lot more cost-effective.
General Implications for the Renewable Energy Sector
Outside of the savings you’ll see as a homeowner, the introduction of a 0% VAT rate from February 2024 is set to significantly boost the renewable energy market.
It’s a bold step that shows the government’s commitment to innovation and investment in green technologies, leading to future developments in energy storage and management.
If you’ve been on the fence for a while; the perfect time to invest in solar power is now.
The government incentives and tax breaks are the most generous they’ve been, and you’re going to see a drastic reduction in your energy bills once you’re generating your own energy.
Some households save as much as 50% on their energy bills, meaning your installation is going to pay for itself over time – and then some.
You’ll also see an increase in your property value, so don’t let the thought of moving home in the future put you off either.
And of course, there is the environmental impact. Solar panels play a crucial role in reducing carbon footprints.
By transitioning to solar energy, a typical UK household can prevent the emission of approximately 1.3 to 1.6 tonnes of carbon annually.