Current Grants and Incentives for Solar PV in the UK
Switching to solar energy is not only a great way to reduce your carbon footprint but also an excellent financial investment. With various government incentives and grants available, installing solar panels is more affordable than ever. In this post, we’ll break down the current grants and incentives available in the UK for 2024 to help you understand how you can maximize your savings when installing a solar PV system.
1. Smart Export Guarantee (SEG)
The Smart Export Guarantee (SEG) allows homeowners with solar PV systems to sell their excess electricity back to the grid. Energy suppliers in the UK are required to offer SEG tariffs, though the rates vary between suppliers.
How does it work? To take advantage of SEG, you must install your solar panels through an MCS-certified installer (such as Everbright, soon to be MCS accredited). Once installed, you can sign up for an SEG tariff through your energy provider, allowing you to earn money from the surplus energy your system generates.
What are the benefits? SEG payments can range from 3p to 15p per kWh depending on the supplier, offering you the opportunity to earn extra income by selling unused energy. This incentive adds a financial benefit to installing solar panels, beyond reducing your energy bills.
2. Zero VAT on Solar PV Installations
One of the most significant incentives currently available in the UK is the Zero VAT policy on solar PV installations. This temporary VAT relief was introduced in April 2022 and remains a major advantage for anyone looking to install solar panels on their home.
How does it work? Previously, homeowners were charged a reduced 5% VAT rate on solar PV installations. However, with the current zero VAT policy, you won’t need to pay any VAT on the cost of your solar system or battery storage (if installed simultaneously), leading to substantial upfront savings.
What are the benefits? This tax relief can save homeowners thousands of pounds on the installation cost of their solar system, making it an excellent time to invest in renewable energy.
3. Energy Company Obligation (ECO4) Scheme
While primarily focused on improving energy efficiency in low-income homes, the ECO4 Scheme may offer some funding for solar PV systems in qualifying households.
How does it work? Large energy companies are required to help vulnerable or low-income households make their homes more energy-efficient. The scheme typically funds insulation and heating improvements, but solar PV systems could be included in a broader package for eligible households.
What are the benefits? If eligible, households can receive significant subsidies or grants to improve their home’s energy efficiency, potentially covering part of the cost of installing a solar PV system.
4. Future Opportunities
While some popular grants, such as the Green Homes Grant and the Renewable Heat Incentive (RHI), have now closed, the UK government continues to prioritize renewable energy. This means future incentives could be on the horizon. For example, new group-buying schemes such as Solar Together offer bulk pricing discounts, making solar PV installations more affordable for participating households.
How Can Everbright Help You?
At Everbright Solar, we are dedicated to making the switch to solar energy as seamless and affordable as possible. With upcoming MCS certification and Competent Person accreditation, we’ll soon be fully certified to help you benefit from these government schemes and incentives.
If you’re interested in learning more about how you can save on your solar installation through these grants and incentives, feel free to contact us for a free consultation or view our current pricing guide.
By staying informed about these grants and incentives, you can significantly reduce the cost of your solar PV system and start saving on your energy bills sooner. Don't miss out on these opportunities—reach out to Everbright Solar today to take the first step towards greener, more affordable energy.
