The idea behind solar incentives in the UK is simple. The UK government is working towards reaching a 32% renewable target before 2030. And introducing different schemes will help them push towards the goal faster.
In this article, we’ll discuss how you can apply and more.
Solar Panel Funding UK: Which One is Available in 2022?
Installers installing solar panels
Here are significant solar panels incentives in the UK:
SEG (Smart Export Guarantee)
Plant growing in a bulb
On January 1st, 2020, the SEG took effect and is currently active. The idea behind the SEG is to pay small-scale low-carbon electricity for the excess energy they send back to the grid. In truth, this grant is not directly from the government; it requires licensed suppliers to provide an export tariff to their customers.
So, suppliers with less than 100,000 customers can voluntarily export tariffs to their customers. But, suppliers with over 100,000 customers must offer a tariff.
What are the advantages of the Smart Export Guarantee?
First, if you become an SEG generator, it comes with the privilege of checking various SEG Licensees to get the best price offer per kWh exported.
While at it, you can check the contract rate and length the Licensees offer.
Typically, you should expect a rate between 1p and 7.5p per kWh.
For example, for a 6.5p per kWh rate, an average two-bedroom homeowner with about 3.0 kWp solar panel installation will earn over £100 yearly under the Smart Export Guarantee.
Who’s Eligible?
You are eligible for SEG if you’re a homeowner with consistent solar panel systems of up to 5MW capacity.
Further, your home has to feature a smart meter to measure the exports.
Also, it’s crucial to note that a few energy suppliers provide special rates for the energy you export from specific systems.
How Do You Apply for SEG?
Once you get an SEG Licensee, apply accordingly based on the specific process.
But before proceeding with the application for SEG tariffs, ensure that you’ve installed a customized energy-efficient panel that fits your home’s needs.
As a result, it will help you save energy from the onset with standard panels suited for your home.
The ECO4 Scheme
Different green energy source
Initially, it was the ECO3 that was effective in the UK. But now, the ECO4 (Energy Company Obligation) is active and should run from July 2022 to March 2026.
The UK Government has issued £4 billion to this cause to reduce carbon emissions and boost the energy ratings of homes.
Is ECO4 different from ECO3?
Yes, it’s different because the former offers people the opportunity to qualify due to flexible eligibility.
Also, it’s essential to note that the ECO4 applies to eligible measures installed from 1st April 2022.
The Pros of the ECO4 Scheme
This scheme is incredible as it allows low-income households to switch their old heating system for a more eco-friendly and efficient design, like solar PV panels.
Further, the ECO4 should upgrade about 450,000 to primarily EPC band C.
So, qualified homes with the least efficiency could save up to £1,600 per year. And the average home will save around £290 on energy bills.
Who’s Eligible?
Vulnerable, low-income, and fuel-poor homes qualify for the ECO4 scheme.
But your home has to meet specific requirements before qualifying for solar PV panels.
- You must live in a privately rented home or live in a home you own
- Possess an inefficient heating system that is within the D-G energy efficiency band
- You must be receiving government incentives like income support.
- All-electric homes mustn’t have ruled out District Heat Network or biomass boilers.
Further, you may still qualify for ECO4 under ECO4 LA Flex if you’re currently not getting government benefits but are considered low-income.
Also, the LA Flex allows councils to determine suitable eligibility criteria in their region.
So, the requirements may not be limited to only people’s circumstances or income. Hence, more people in the UK will get solar panel grants.
How Do You Apply for the ECO4 Scheme?
First, you need to contact a participating energy supply. Then, they will schedule a telephone assessment to ask questions about your home and heating needs.
With this information, the participating energy supply will discuss a possible date for an installer to visit your home.
The installer will confirm your home’s suitability for ECO4 and determine the best-suited energy-efficient measure.
0% VAT for Energy-savings Products
Inscription of VAT on a table
The UK government introduced zero VAT for installing energy-efficient measures and materials in April 2022.
But after five years, the VAT will revert to 5%. Hence, this initiative and the solar panel grants will help homeowners get renewable energy sources quickly.
The Advantages of the 0% VAT
The 0% VAT will allow homeowners with rooftop solar panels to save around £300 per year on energy bills and over £1,000 on installation.
Also, this solar incentive applies to other energy-saving materials, excluding solar panels, like insulation, heat pumps, biomass boilers, etc.
Who’s Eligible
You can be eligible for the zero VAT rules if you live in a home with new installation needs that meets specific requirements:
- You must do your installation and buy the necessary products at once.
- Install other things, like insulation, at the same time. In short, the bulk of the work must be for energy-saving materials.
How Do You Apply for 0% VAT?
Your installer will automatically apply the 0% VAT if your energy-saving materials and installation qualify you for the incentive. So, it doesn’t require any application process.
UK Solar Panel Funding 2022: Is It Legal?
Funds for solar expansion
Yes, this solar incentive is legitimate. Further, you can get back most of the solar panels and installation costs with the ECO4 initiative.
And if you’re a homeowner that meets specific criteria, you can get the prices of other energy-saving measures as a bonus. With SMG, you can earn money by producing extra electricity from solar panels.
In addition, you can boost your savings by staying up to speed with the grants.
Also, it’s crucial to apply the grants to the appropriate panels.
In Closing
Solar incentives UK in 2022 is a big deal due to the quest for a low-carbon future.
The government should have offered grants or interest-free loans to encourage energy-efficiency measures and solar panel sales in 2015.
But they came up with other ideas like the expired Feed-in Tariff scheme and the ones highlighted in this article that are running.
Now, things are looking good for many qualified homes in terms of energy saving.
At this rate, the UK government may conveniently reach its renewables goal in 2030.
Do you need more insight into solar panel incentives? Please feel free to reach us.
