Solar for charities, village halls and community buildings
Solar suits a community building when it is used in daylight: a hall with a nursery, clubs and classes through the week, a community centre with a café and offices, a charity's warehouse or workshop, a day centre. A hall used mainly in the evenings exports most of what the panels make unless a battery or another building on the site can use it.
- Who uses it, and when. Weekday daytime bookings make the most of the panels
- The roof. Its condition, which way it faces, shading, and whether it is listed or in a conservation area
- The meter. One supply or several, and whether neighbouring buildings could share the power
- Who owns the building. The charity, a trust, the council or a private landlord
VAT for charitable use
Since 1 February 2024, HMRC's zero rate for energy-saving materials has applied to buildings intended for use solely for a relevant charitable purpose, until 31 March 2027, when it reverts to the reduced rate of 5% (Notice 708/6). Solar panels and batteries are both on HMRC's list.
| How the building is used | VAT on supply and installation |
|---|---|
| By a charity otherwise than in the course or furtherance of a business | Zero rate until 31 March 2027 |
| As a village hall or similar, providing social or recreational facilities for a local community | Zero rate until 31 March 2027 |
| Partly for business activities (a shop, a café run as a business, commercial lettings) | Standard rate, unless the charitable part is apportioned |
HMRC says the installer should take reasonable steps to check the use, for example a letter from the charity confirming it; no certificate is needed. A VAT-registered charity using a building for business activities may be able to reclaim VAT on that part (GOV.UK). See VAT on solar panels for the full picture.
Give your trustees a real proposal to consider: book a free site survey.
Book a free site surveyGrants and community energy funding
Great British Energy's community energy page lists (GBE):
- GBE Community Fund. Grants for eligible community energy projects in England, Wales and Northern Ireland, from early feasibility through to construction
- In Scotland. Great British Energy invests in the CARES programmes delivered by Local Energy Scotland, including the Community Energy Growth Fund and CARES Launchpad
- Application help in England. Your Local Net Zero Hub can give tailored advice and review a draft application
- Shared ownership. Guidance and templates for a community taking a stake in a commercial project
Great British Energy has also funded mayoral authorities to put solar on community buildings: in July 2025 it announced a share of £10 million for projects including rooftop solar on care homes, leisure centres and libraries (GBE). Local schemes open and close, so check what your council or combined authority offers. Our solar grants page lists the national picture.
Community ownership models
There are three common ways a community building gets solar:
| Model | Who pays and owns | What the building gets |
|---|---|---|
| The charity buys it | The charity, from reserves, a grant or a loan | All the savings on its own bills |
| A community energy group | A local energy organisation raises the money and owns the panels | Cheaper electricity under an agreement, and community involvement |
| A third-party funder | A funder installs and owns the panels under a power purchase agreement | Electricity at an agreed rate, with no upfront cost |
The second and third need an agreement covering roof access, how long it runs and what happens at the end. Our guide to solar PPAs explains how the third works.
Who signs: trustees and landlords
Trustees make the decision. The Charity Commission's guidance on trustee decision making (CC27) says trustees must act within the charity's powers and in its interests, make sure they have enough information, take account of what is relevant and reach a decision a reasonable board could make (Charity Commission). A written proposal from the installer, with the design, the expected generation, the price and the maintenance, is that information. If the charity leases the building, the landlord must consent; if it is listed or in a conservation area, planning or listed building consent may be needed. See solar on leased property and planning permission.
Sources
HMRC Notice 708/6, Great British Energy's community energy pages and the Charity Commission's CC27 were read on 2 November 2026. Funds open and close, so check the current round.
- HMRC VAT Notice 708/6: energy-saving materials, relevant charitable purposes (2.22)
- Great British Energy: community energy, the GBE Community Fund and CARES in Scotland
- Great British Energy: £10 million to cut energy bills for community facilities (17 July 2025)
- Charity Commission: Decision making for charity trustees (CC27)
- GOV.UK: Charge, reclaim and record VAT
General information, not tax or legal advice. Your accountant confirms the VAT position.