The UK government offers several financial incentives that can significantly reduce the cost of going solar. Here is everything you need to know about the grants and schemes available in 2025.
VAT Relief on Solar Panels
Since April 2022, solar panel installations on residential properties benefit from 0% VAT, saving homeowners 20% on their installation cost. This applies to solar panels, battery storage, and related equipment. At SMS, all our quotes already reflect this zero-VAT pricing.
Smart Export Guarantee (SEG)
The SEG requires energy suppliers with more than 150,000 customers to pay you for electricity you export to the grid. Current rates range from 4p to 15p per kWh depending on your supplier and tariff. Octopus Energy, one of our trusted partners, offers some of the most competitive SEG rates.
ECO4 Scheme
The Energy Company Obligation (ECO4) runs until March 2026 and provides free or heavily subsidised energy efficiency measures, including solar panels, for eligible households. You may qualify if you receive certain benefits or live in a property with a low EPC rating.
Home Upgrade Grant (HUG2)
This scheme targets off-gas-grid homes in England with an EPC rating of D, E, F, or G, and a household income below £36,000. It can cover the full cost of solar panels and battery storage as part of a whole-house retrofit.
How We Help
Our team checks your eligibility for every available scheme during the initial consultation. Many of our customers have received significant reductions through these programmes, and some have had their entire system covered.
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