Since Russia started the war in Ukraine, energy prices at the wholesale level have skyrocketed. Like you, many other homeowners are now considering solar panels to reduce energy consumption costs. However, a significant barrier to becoming greener while saving a substantial amount of your hard-earned money each year is the cost of installation of solar panels. This is why you, and many other homeowners, are searching for grants for solar panels.
We published an in-depth article in December 2022 discussing whether it’s worth installing solar panels. In this article, we highlighted that the cost is significantly cheaper than it used to be despite fewer attractive government grants and schemes. Nonetheless, investing several thousand pounds is still somewhat difficult for many households. And this is where solar panel grants and initiatives come into play.
Alternatives to Solar Panel Grants
0% VAT
In a bid to reduce the cost of solar panels for homeowners, the government is not charging VAT. It means manufacturers and distributors effectively offer a solar panel system 20% cheaper. In addition, installing solar panels is 20% cheaper as well, as installers aren’t required to charge VAT either. In most cases, it is a saving of at least £1,000 for the average household.
Furthermore, the 0% VAT is extended to other home improvement products in relation to energy. For example, insulation and draught stripping – can stop the warm air from exiting your home while preventing cold air from entering. To learn more about which products are covered under the 0% VAT scheme, go to the government’s energy-saving products page.
As you can imagine, this applies to anyone regarding your economic circumstances. While free solar panels aren’t available, and even if they were we’d all be paying more taxes, an exception from VAT does reduces solar panel prices and solar panel installation.
ECO4
ECO4 started in August 2022 and is due to continue until the end of March 2026, and is good news for households that receive the following benefits:
- Child Tax Credits (CTC)
- Child Benefits – depends on income threshold*
- Jobseekers Allowance (JSA)
- Employment & Support Allowance (ESA)
- Income Support (IS)
- Pension Credit Guarantee Credit
- Universal Credit (UC)
- Warm Home Discount Scheme Rebate
- Working Tax Credit (WTC)
- Housing Benefit
- Pension Credit Saving Credit
ECO4 offers free solar panel grants in the UK for households with income-related benefits. If you’re in receipt of any of these benefits, you’re eligible for a solar panel grant so you can use renewable energy and save money on your energy bills.
ECO+
ECO+ is an extension of the ECO scheme that opens the net to 100,000s more households to tackle high energy bills. Under this scheme, when it’s launched in Spring 2023, homes with an EPC rating of D or worse in a Council Tax Band of A to D could get one of the following insulation installed:
- Cavity wall insulation
- Solid wall insulation (external and internal)
- Loft insulation
- Pitched roof insulation
- Flat roof insulation
- Underfloor insulation
- Solid floor insulation
- Park home insulation
- Room-in-roof insulation
As always, the Money Saving Expert has explained how more people can get help with energy-efficient home improvements with relation to ECO+.
Local Authority Flexible Eligibility
You may still qualify for Local Authority Flex if you do not receive any of the above benefits. As the same suggests, it offers more flexibility for local authorities to support low-income households to install solar panels to experience energy bill savings. However, to be considered a low-income household, determined at £30,000 or less per year. The eligibility criteria are extensive, and it’s best to view it on the ECO4 website.
Smart Export Guarantee (SEG)
Under SEG, homeowners who have installed solar panels can speed up the return on their investment by selling energy produced back to their chosen supplier. It used to be called the Feed in Tariff Scheme but recently changed. Each energy company offers different rates and has certain criteria. We wrote an article a few weeks back on, the benefits of installing solar panels, which presents some of the best offers in the industry.
Summary
While there are not any solar panel grants in 2023, other alternatives exist. Firstly, everyone can benefit from 0% VAT on the cost and installation of solar panels. However, only those in low-income families or homes with an EPC of D or worse can get free insulation. Furthermore, low-income families can also benefit from replacing inefficient energy with more efficient solar panels.
