To help you get realise the energy benefits there are two grants available that you maybe eligible for, a guarantee for the electricity you export, plus of course no VAT on solar panel energy systems. Starting with the benefits everyone can receive.
No VAT (0%) On Solar Panel Energy Systems
Currently solar panels and the energy system installed at the same time have VAT relief or 0% VAT. You do not have to apply for this, the installer will include this automatically in your quote.
Smart Export Guarantee (SEG)
The Smart Export Guarantee (SEG) is a government-backed initiative requiring some electricity suppliers (those with over 150,000 customers), to pay small-scale generators (under 5MW) for low-carbon electricity which they export to the National Grid, providing certain criteria are met.
SEG is simple in theory, more complicated in practice so see the Smart Export Guarantee article.
Grants
The two grants you maybe able to use are
ECO4
Benefit – up to 100% of the cost of a solar energy system, but also covers other aspects of home energy use including insulation and heating including air source heat pumps.
This grant is aimed at energy in-efficient households who meet the following criteria (if this does not apply go to the next grant, the Home Upgrade Grant).
- Warm Home Discount Scheme Rebate
- Child Benefit – depends on income thresholds
- Child Tax Credits (CTC)
- Working Tax Credit (WTC)
- Universal Credit (UC)
- Income Support (IS)
- Pension Credit Saving Credit
- Pension Credit Guarantee Credit
- Housing Benefit
- Jobseekers Allowance (JSA)
- Employment and Support Allowance (ESA)
Receiving a benefit does not guarantee receipt or level of grant. Every case is assessed on it’s merits. If you meet these criteria please check eligibility before installation to make sure you will get a grant.
Before any solar work starts, your home has to be insulated to a specified level, through ECO4 you might also qualify for insulation too.
Applying for ECO4
To apply for ECO4 contact one of the energy suppliers that has to carry out ECO4 improvements. This does not have to be your current energy provider and you may approach more than one to see if they meet your needs. Current ECO4 energy suppliers are
- British Gas
- Co-Operative Energy
- E
- E.ON
- Ecotricity
- EDF
- ESB Energy
- Octopus Energy
- Outfox The Market
- OVO Energy
- Scottish Power
- Shell Energy
- SO Energy
- Utilita Energy
- Utility Warehouse
Once you make contact, you are guided through an assessment by phone and if you meet the criteria then the company will arrange a home visit to confirm suitability for the grant. The process is designed to make it as simple as possible.
Depending on the route into ECO4, the process can be from a week to several weeks depending on all the verifications and approvals required. To make the process as smooth as possible make sure you have all the required documentation ready, and the details given in the application match the documentation.
Success & Installation
If you are successful the installation company takes on all costs associated with the work and will invoice the responsible company directly so you don’t have to deal with any upfront costs. If required and it is rare, any contribution will then be paid back through the ECO4 company.
Home Grant Upgrade (HUG)
Applies to England only – Scotland, Northern Ireland and Wales have their own schemes.
Benefit – grants of up to £10,000 for home energy improvements including solar energy systems, insulation, heat pumps, double glazing and heating controls. £10,000 will cover the cost of a typical home solar installation (£7,800) but usually grants are 85 – 90% of the cost of installing solar.
This grant is specifically aimed at homes not connected to gas grid whose EPC rating is D, E, F and G. There maybe a criteria that the household income is under £31,000. The home also has to be in one of the qualifying local authority areas who themselves were given a grant by the Government. Contact your local authority or Home Grant area group to find out more.
Interested In A Home Solar Energy System?
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