As the renewable energy revolution gains momentum across Europe and the UK, one of the most impactful financial incentives for homeowners is the 0% VAT rate on solar photovoltaic (PV) systems, energy storage systems (ESS), and heat pumps. These technologies enable energy independence, reduce household bills, and contribute directly to national climate targets.

But who exactly qualifies for this tax relief? What conditions apply? And how can homeowners, certified installers, and renewable energy webshops take advantage of this in 2025 and beyond?

In this article, 3Buy Solar provides a comprehensive breakdown for private customers, solar installers, heat pump professionals, and B2C/B2B webshop operators across the EU and UK markets.

Who Can Claim 0% VAT on Solar PV, ESS, and Heat Pumps?

🇪🇺 EU: Private Residential Owners with Self-Use Renewable Installations

Under the EU VAT Directive 2022/542, implemented by multiple EU member states, the 0% VAT rate can apply to private end-users when the following conditions are met:

  • The solar PV system, battery storage (ESS), or heat pump (air/water/ground source) is installed on or near a private residential building or dwelling.

  • The system is intended for self-consumption or household heating, not commercial resale or grid-only feed-in.

  • Installation must be done by a certified professional and invoiced properly with a legally compliant 0% VAT clause.

  • The invoice must be addressed to the homeowner, with verifiable residential address.

  • Equipment must be technically suitable for private home energy and heating purposes.

✅ Examples of Qualifying Products:

  • Solar Panels (e.g., JA Solar 430W–600W, mono PERC)

  • Hybrid / String / Off-Grid Inverters

  • Energy Storage Systems (ESS) (e.g., BYD, Huawei Luna, Pylontech, Dyness)

  • Complete Residential Solar Kits (including mounting, monitoring, DC/AC cabling)

  • Heat Pumps (e.g., air-to-water monoblock, split units, or ground source systems)

  • Heat Pump Accessories (e.g., hydroboxes, control units, glycol kits – if supplied with the system)

🇬🇧 UK: 0% VAT on Solar and Heat Pump Installations for Households

Since April 2022, the UK government has applied a 0% VAT rate on energy-saving materials, extended in 2024 to include:

  • Solar PV systems

  • Solar batteries and hybrid inverters

  • Air-source and ground-source heat pumps

  • Heating controls, insulation, and related installable accessories

Conditions:

  • Installation must be at a private residential property (owner-occupied or landlord-owned).

  • The products must be installed together as part of a complete system by a VAT-registered installer.

  • DIY or component-only purchases do not qualify for 0% VAT unless accompanied by a valid install declaration and invoiced by an approved supplier.

Requirements for Installers and Renewable Webshops for Reduced or 0% VAT

For Installers (Solar & Heat Pumps):

  • Must be certified by national authorities (e.g., MCS Certified in the UK, Elektroinstallateur or Meisterbetrieb in Germany).

  • Invoice must clearly:

    • Separate labor and material costs.

    • Include VAT-free clause based on local tax law.

  • Provide documentation verifying the installation site is a private home.

For Online Shops (like 3Buy Solar via Buy-Solar.Online):

  • For EU residential customers, display VAT-exempt pricing and conditions for eligible solar and heat pump products.

  • Request:

    • Installation certificate

    • Proof of home address

    • Declaration of private use

  • For UK customers, link sales to certified installers or supply declaration templates for compliant invoices.

  • Verify buyer intent to ensure only non-commercial, private-use systems are processed at 0% VAT.

  • Comply with local VAT rules and thresholds for cross-border transactions within the EU.

🛑 Who Is NOT Eligible for 0% VAT?

  • EPCs or commercial installers purchasing stock for resale or commercial deployment.

  • Installers or distributors purchasing without declaring the end-user installation.

  • Agricultural, garage, or storage buildings not used as private homes.

  • Customers from EU states that have not implemented Directive 2022/542.

  • DIY-only customers without certified installation or invoice structure.

🇬🇧 United Kingdom

0% VAT on Solar PV, ESS, and Heat Pumps

  • Effective Period: From April 1, 2022, until March 31, 2027.

  • Eligible Products:

    • Solar panels

    • Battery storage systems (including retrofits)

    • Air-source and ground-source heat pumps

    • Other energy-saving materials

  • Conditions:

    • Applies to installations in residential properties and buildings used solely for charitable purposes.

    • Must be supplied and installed together by a VAT-registered installer.

    • Standalone purchases without installation services may not qualify.

Note: After March 31, 2027, the VAT rate is scheduled to revert to 5%.

🇩🇪 Germany

0% VAT on Residential Solar PV and ESS

  • Effective Date: January 1, 2023.

  • Eligible Products:

    • Photovoltaic systems up to 30 kW for single-family homes.

    • Up to 15 kW per unit for multi-family buildings, with a maximum of 100 kW per building.

    • Associated energy storage systems.

  • Conditions:

    • Applies to the supply, import, intra-Community acquisition, and installation.

    • Must be installed on or near private dwellings.

    • Primarily for self-consumption purposes.

Note: This measure aims to reduce bureaucracy and support private operators of PV systems

🇦🇹 Austria

0% VAT on Residential Solar PV Systems

  • Effective Period: January 1, 2024, to March 31, 2025.

  • Eligible Products:

    • Photovoltaic systems up to 35 kW.

    • Associated components and assembly services.

  • Conditions:

    • Applies to private individuals installing systems on residential properties.

    • Aims to simplify the acquisition process and boost solar adoption

Note: The VAT exemption is set to expire after March 31, 2025, unless extended by the government.

🇪🇸 Spain

Standard VAT Rates Apply

  • Current VAT Rate: 21% for most goods and services, including solar PV systems and heat pumps.

  • Notes:

    • While there have been temporary reductions in VAT for electricity due to market conditions, no permanent reduced VAT rates for solar PV or heat pumps have been established.

    • The Spanish Photovoltaic Union (UNEF) has proposed measures to promote self-consumption, but VAT reductions have not been implemented as of July 2025.

🇷🇴 Romania

Increased VAT on Solar PV Systems

  • Current VAT Rate: 9% for photovoltaic panels, increased from the previous 5%.

  • Notes:

    • The VAT increase is part of a broader tax package aimed at addressing budgetary concerns.

    • Consumers and installers have expressed concerns over delays in settlements and an unclear legal framework affecting the photovoltaic sector.

🇳🇱 Netherlands

0% VAT on Solar Panels

  • Effective Date: January 1, 2023.

  • Eligible Products:

    • Solar panels installed on or near private dwellings.

  • Conditions:

    • Applies to the supply and installation of solar panels.

    • Aims to make solar energy more accessible to homeowners.

🇮🇪 Ireland

0% VAT on Solar Panels

  • Effective Date: May 1, 2023.

  • Eligible Products:

    • Solar panels installed on private dwellings.

  • Conditions:

    • Applies to the supply and installation of solar panels.

    • Part of Ireland’s efforts to promote renewable energy adoption.

🇭🇷 Croatia

0% VAT on Solar Panels

  • Effective Date: Date not specified.

  • Eligible Products:

    • Solar panels installed on private dwellings.

  • Conditions:

    • Applies to the supply and installation of solar panels.

    • Aims to encourage the use of renewable energy sources.

🇵🇹 Portugal

Reduced VAT on Solar Panels

  • Current VAT Rate: Reduced rates apply to thermal and photovoltaic solar panels.

  • Notes:

    • The reduced VAT rates are part of Portugal’s efforts to promote renewable energy.

    • Specific rates and conditions may vary; it’s advisable to consult local regulations for detailed information.

Please Note: VAT rates and policies are subject to change. It’s recommended to consult with local tax authorities or professional advisors for the most current information and to ensure compliance with all applicable regulations.

Best Practices for Homeowners (Solar & Heat Pump Buyers)

To ensure you qualify for the 0% VAT rate:

  1. Buy from a certified solar and renewable energy supplier like 3Buy Solar.

  2. Choose products specifically listed as 0% VAT-eligible — check for labels like:

    • “For residential self-use”

    • “Private customer VAT exempt”

  3. Prepare the following:

    • Proof of residential installation address

    • Copy of installer certification (if required)

    • Completed VAT exemption declaration (provided by webshop)

  4. Maintain proper documentation and installation photos for tax or audit purposes.

Shop 0% VAT Solar PV, ESS & Heat Pump Systems at Buy-Solar.Online

3Buy Solar offers Europe’s leading selection of 0% VAT eligible solar kits, home batteries, hybrid inverters, and certified residential heat pump systems from top EU and UK brands.

Why Order from Us?

  • ✅ Full 0% VAT support for private EU & UK homeowners

  • ✅ Verified certified installer network & B2C webshop documentation

  • ✅ Complete residential solar & heating systems in one place

  • ✅ Real-time stock visibility, no minimum order, express delivery

  • ✅ Trusted by EU installers and private buyers since 2018

Contact Our Team for VAT-Free Orders

Need help validating your VAT exemption or finding the right kit?

Get in touch with our multilingual support team:

📧 info@buy-solar.online

📞 +44 204 577 1078 (UK)

📞 +421 233 070 448 (EU)

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