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Grants and opportunities available when purchasing solar panels in 2023
Learn about the most recent solar panel grants and opportunities and you could benefit from sustainable energy for less. Although fewer programmes are available than in the past, homeowners can still apply for subsidies to help with installation costs. It’s a choice well worth thinking about because solar panels cost thousands of pounds.
The process of selecting solar panels for the home might be difficult. Different properties suit different panels and not all homes are ideal for panels. However, solar panels can significantly reduce your energy costs. With a 4.2-kilowatt peak system, the average household may save anywhere from £210 and £514 annually.
The ECO4 Scheme
The Energy Company Obligation (ECO), overseen by Ofgem, is a government programme for energy efficiency in the United Kingdom. The ECO1 programme started in January 2013, followed by ECO2, ECO2t and ECO3 over the years. The new programme, ECO4, has taken ECO3’s place. The four-year duration of ECO4 is planned to span until 31 March 2026. Low-income households can use ECO4 to upgrade their inefficient heating system. This allows them to have access to more effective and sustainable technology, such as solar PV panels.
According to estimates, the ECO4 will update over 450,000 residences, largely to EPC band C. The typical household energy cost will be reduced by about £290 for qualified households. Nevertheless, this might save as much as £1,600 a year for the least energy-efficient households.
The Smart Export Guarantee
The SEG is the scheme which replaced the Feed-in-Tariff in 2020. It mandates that energy providers with 150,000+ customers compensate homeowners for any solar electricity that is not used. As a result, you will already require the installation of solar PV panels, yet an SEG tariff can still help you save money on your electricity bill.
Homeowners that have solar PV panels installed may qualify if they are MCS-certified. But you’ll also be forced to install a registered smart metre that keeps track of the electricity you export. With the SEG, the question is primarily about potential earnings. Although this might vary according to your electricity usage and export tariff rates. Which? reports that households paying the highest SEG rate could save £82 annually.
Although this isn’t a grant to help you afford solar panels, it is an amazing scheme available that allows you to earn money off of your panels.
Zero VAT on Solar Panels
Homes in the UK will now enjoy zero VAT on the purchase of materials and their installations. This came into effect in April 2022.
The VAT-free period expires after five years, and the rate then goes back to 5%. Therefore, the elimination of the VAT in addition to grants puts householders one step closer to obtaining renewable energy sources than ever before. The average household with solar panels will save more than £1,000 on installation and £300 yearly on their energy bills. This is the result of the repeal of the 5% VAT on renewables, which was already a relatively low rate.
Other energy-saving products like heat pumps, biomass boilers, insulation, and more are also eligible for the 0% VAT.
Now you know of the grants and opportunities out there maybe it’s the right time to consider solar panels. Contact our team today! Take the next step and get your solar panels installed for 2023. We will be happy to discuss your next steps further.