Complete guide to solar panel grants, 0% VAT, ECO4 scheme, and Smart Export Guarantee payments available in 2025.
While the Feed-in Tariff closed to new applicants in 2019, several valuable incentives remain available for UK homeowners considering solar panels. The most significant is the 0% VAT rate on residential solar and battery installations, which saves approximately £1,000-£2,000 on a typical installation.
Residential solar panel and battery installations are zero-rated for VAT until at least March 2027.
Government-backed scheme providing free or heavily subsidised energy efficiency measures including solar panels for eligible households.
Get paid for excess electricity you export to the grid. Rates vary by supplier.
Local authority grants for energy efficiency improvements in fuel-poor areas.
Since April 2022, residential solar panel and battery storage installations in the UK have benefited from 0% VAT. This significant incentive has been extended until at least March 2027, saving homeowners approximately £1,000-£2,000 on a typical installation.
The 0% VAT rate applies automatically - you don't need to apply or register. Simply ensure your installer is VAT registered and the installation is on a residential property.
The Energy Company Obligation (ECO4) scheme is a government-backed programme that provides free or heavily subsidised energy efficiency measures, including solar panels, to eligible households. The scheme runs until March 2026.
ECO4 funding is provided by major energy suppliers and distributed through approved installers. If you qualify, you could receive free solar panels with no upfront cost.
You may qualify for ECO4 if you receive any of the following benefits:
The Smart Export Guarantee (SEG) replaced the Feed-in Tariff in January 2020. Under SEG, energy suppliers with 150,000+ customers must offer to pay you for electricity you export to the grid. Rates vary significantly between suppliers, typically ranging from 4p to 15p per kWh.
A typical 4kW system exports approximately 1,700 kWh per year:
We help customers register for competitive SEG tariffs after installation.
Yes, through the ECO4 scheme if you receive qualifying benefits and your property has an EPC rating of D or below. Contact us for a free eligibility check.
No, the Feed-in Tariff closed to new applications in March 2019. It has been replaced by the Smart Export Guarantee (SEG) which pays for exported electricity.
The current 0% VAT rate for residential solar and battery installations is guaranteed until at least March 2027. It may be extended further.
Some local authorities offer additional grants through the Warm Homes: Local Grant scheme or their own initiatives. Availability varies by area - we can advise during your consultation.
Find out which grants and incentives you qualify for with a free consultation.