The UK government has put more financial support behind renewable energy than at any point since the Feed-in Tariff closed in 2019. From 0% VAT on domestic installations to £7,500 heat pump grants, there are now multiple overlapping schemes that can dramatically reduce the upfront cost of going green.
This guide covers every grant, incentive, and tax relief available in 2026 for homeowners, landlords, and businesses across England. We explain what each scheme offers, who qualifies, and how to access it.
0% VAT on Residential Solar and Battery Storage
Since April 2022, domestic solar panel installations have been zero-rated for VAT. This applies to solar panels, battery storage, and associated equipment when installed on residential properties. The scheme is confirmed until 31 March 2027.
This saves you 20% on the total installation cost. On a typical 4kW solar system costing £5,500, the VAT saving is £1,100. On a combined solar and battery system costing £9,000, you save £1,800. The 0% rate applies automatically — your installer (like Green Hat Renewables) applies it on your invoice.
Boiler Upgrade Scheme (BUS) — £7,500 for Heat Pumps
The Boiler Upgrade Scheme provides a £7,500 grant for air source heat pumps and a £7,500 grant for ground source heat pumps installed in England and Wales. The scheme runs until March 2028 and is available to homeowners replacing fossil fuel heating systems.
To qualify, your property must have an EPC (any rating), be replacing a fossil fuel system (gas, oil, LPG, or electric heating), and use an MCS-certified installer. The grant is applied directly by your installer — you never need to pay the full amount upfront. Green Hat Renewables is MCS certified and handles the entire BUS application process.
Smart Export Guarantee (SEG)
The Smart Export Guarantee requires licensed electricity suppliers to offer a tariff for surplus solar electricity exported to the grid. Current SEG rates range from 3p to 15p per kWh depending on your supplier and tariff type.
The best SEG rates in 2026 come from Octopus Energy (Flux: up to 27p/kWh during peak, or 15p/kWh fixed), Octopus Agile Export (variable, often 10-20p/kWh), and British Gas (7.5p/kWh fixed). You need an MCS-certified installation and a smart meter to access SEG payments. We handle your MCS registration as part of every installation.
ECO4 Scheme — Free Insulation for Eligible Households
The Energy Company Obligation (ECO4) provides free or heavily subsidised energy efficiency improvements including loft insulation, cavity wall insulation, external wall insulation, and heating upgrades. The scheme targets fuel-poor households and low-EPC-rated properties.
- Benefit recipients: If you receive Universal Credit, Pension Credit, Child Tax Credits, Working Tax Credits, Housing Benefit, or Income Support, you likely qualify.
- Low-EPC properties: Homes rated D, E, F, or G may qualify regardless of benefit status under the LA Flex scheme (Local Authority referral).
- What is covered: Loft insulation, cavity wall insulation, external wall insulation, underfloor insulation, and in some cases, heating system upgrades.
- Cost: Fully funded for qualifying households. No upfront cost. We assess eligibility and manage the application as an ECO4 approved installer.
Annual Investment Allowance (AIA) for Businesses
Businesses installing solar panels, battery storage, heat pumps, or EV chargers can deduct the full cost from taxable profits in the year of installation. The Annual Investment Allowance is currently set at £1 million, meaning virtually all commercial renewable energy installations qualify.
For a business paying corporation tax at 25%, a £50,000 commercial solar installation effectively costs £37,500 after tax relief. Combined with electricity savings and SEG income, commercial solar systems typically achieve payback in 2-4 years.
Workplace Charging Scheme
The OZEV Workplace Charging Scheme provides grants of up to £350 per charging socket, to a maximum of 40 sockets per applicant. Businesses, charities, and public sector organisations can claim for EV charger installations at their premises. The scheme covers the cost of the charger and installation, making workplace EV charging very affordable.
How to Access These Schemes
The simplest way to access all available funding is to book a free survey with an MCS-certified installer. At Green Hat Renewables, we assess your eligibility for every relevant scheme during your initial survey, handle all paperwork and applications, and ensure your installation meets the technical requirements for each programme.
Contact us on 0330 111 7421 or book a free survey online. We serve all of Cambridgeshire, Norfolk, and Suffolk.
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