Energy bills in the UK remain unpredictable and many households are searching for long-term solutions. Solar Panels & Battery Storage Installation offers a way to cut costs, gain energy independence and add value to your property. But beyond the obvious savings, what financial incentives are available to support homeowners making the switch?
Here’s a clear breakdown of the schemes and benefits you should know about.
0% VAT on Solar Panels & Battery Storage Installation
The government has set VAT at 0% for solar panels and battery storage fitted in domestic properties. This policy, in place until at least 2027, immediately reduces installation costs.
For example, a system costing £10,000 would previously have carried £2,000 in VAT. That savings stays in your pocket. This simple but significant change makes Solar Panels & Battery Storage Installation far more affordable.
Smart Export Guarantee (SEG)
The Smart Export Guarantee allows you to earn money from any surplus power you export to the grid.
- Eligibility: Your installation must be certified under the MCS scheme.
- Payments: Suppliers set their own rates, which currently range from 2p to 20p per kWh.
- Benefit: Batteries mean you can store energy for later use but any extra generation still earns you an income.
SEG doesn’t just provide payback; it strengthens the overall return on your solar investment.
ECO4 Scheme
The ECO4 scheme is aimed at low-income households or those living in homes with poor energy efficiency ratings (EPC D–G). Under the scheme:
- Solar panels can be included as part of wider energy efficiency upgrades.
- Eligibility is linked to income, benefits and property type.
It’s worth checking eligibility if your home falls into this category, as ECO4 can reduce upfront costs considerably.
Warm Homes: Local Grant (WH:LG)
Introduced in April 2025, this grant is distributed by local authorities. Funding covers improvements such as solar panels and battery storage, especially in households struggling with energy costs.
Eligibility and availability depend on where you live, so it’s important to contact your local council for details.
Long-Term Savings and Value
Even if you don’t qualify for grants, Solar Panels & Battery Storage Installation pays for itself over time.
- Lower bills: Savings of 40–60% on electricity are common.
- Energy security: Stored energy keeps you less reliant on the grid.
- Property value: Homes with renewable installations often sell faster and for more.
Over 20–25 years, the typical lifespan of panels, the financial benefits extend well beyond the initial investment.
What to Check Before Installing
To make the most of incentives:
- Confirm your installer is MCS certified (essential for SEG).
- Ask whether the 0% VAT rate applies to all elements of your system.
- Compare SEG rates across suppliers before committing.
- Explore whether your local authority has WH:LG funding available.
- Consider system size carefully — installation should reflect your household’s energy use, not just roof space.
Incentives That Make Solar a Smarter Choice
The combination of 0% VAT, SEG income, ECO4 support and local grant funding means UK homeowners have more opportunities than ever to make Solar Panels & Battery Storage Installation cost-effective.
If you’re ready to explore whether your home qualifies and what savings are possible, Glenfield Electrical can help you navigate the options and design a system that works for you.
Contact Glenfield Electrical today to find out how solar could save you money now and long into the future.
