Available Solar Panel Incentives
VAT Reduction Scheme
The government introduced the VAT reduction scheme in April 2022 and will run to April 2027. The VAT reduction scheme means you will pay 0% VAT on energy saving materials. This means there has never been a better opportunity for homeowners to go green and reduce their ever rising energy bills with the use of energy saving materials.
This applies to all energy saving materials, so it applies to Solar Panels and many other items such as:
- Air source heat pumps
- Solar Panels
- Ground source heat pumps
- Controls for central heating and hot water systems
Smart Export Guarantee (SEG)
For those of you who are looking to get solar panels installed, the Smart Export Guarantee (SEG) means you can earn money by exporting the electricity produced by your solar panels back to the national grid. This was introduced by the government and has been wanted by many since they removed the Feed in Tariff.
The Smart Export Guarantee scheme is much better and more fair than the old Feed in Tariff, because homeowners get paid for every unit of electricity you export back. Which makes this much more appealing for people to get solar panels as well as battery storage, maximising the potential of solar pv panels.
The rates you can get paid back vary from each export company you can use, so shopping around for the best price is a wise choice. You are also able to switch energy providers if you wish, the panels don’t lock you into any long term contracts with energy companies.
This is the government’s fourth step in the Energy Company Obligation (ECO) scheme. This scheme has been designed to support low-income households improve their existing homes and heating systems with a newer more energy efficient product.
This incentive started in July 2022 and will run to March 2026.
You could be eligible for this scheme if you meet any of this criteria:
- Your household income is less than £31,000 per year
- You receive certain benefits
- You have been referred by a local authority, doctor or energy provider