UK incentives for solar PV & battery storage, explained plainly
A straightforward look at the financial incentives currently available for solar PV and battery storage in the UK — what they are, who they apply to, and what to check before you commit to a project.
0% VAT on residential solar & battery storage
Most residential solar PV and battery storage installations in Great Britain currently qualify for 0% VAT, under HMRC's temporary relief on energy-saving materials. This covers the equipment and the installation labour, and it's applied automatically by a VAT-registered installer — there's no separate application or claim process.
The relief is scheduled to run until 31 March 2027, after which the rate is expected to revert to 5%. It applies to residential properties; commercial properties are generally not covered by this particular relief, though other business incentives may apply (see below).
The Smart Export Guarantee (SEG)
The Smart Export Guarantee is a government-backed scheme that requires larger electricity suppliers to pay eligible homes and small businesses for surplus renewable electricity exported to the grid. Rates aren't fixed by government — each supplier sets its own tariff, so it's worth comparing before choosing where to export to.
Claiming SEG typically requires an MCS-certified installation and an export-capable smart meter. We'll talk you through what's needed for your system as part of your assessment.
Worth noting: because self-consumed electricity generally avoids a higher cost than exporting earns back, a well-sized battery that lets you use more of your own generation is usually worth more to you than maximising exports — another reason system sizing, not just panel count, is what actually matters.
Incentives for commercial & industrial clients
Businesses may be able to claim capital allowances on qualifying renewable energy equipment, which can reduce the effective cost of a commercial or industrial installation. The specific rules, rates and eligibility criteria change from year to year, so this is genuinely a conversation for your accountant or tax advisor — we're happy to provide the technical specification of a proposed system to support that conversation, but we're not tax advisors and won't give you a number here.
This page is general information, not financial or tax advice
Incentive schemes, VAT rules, and tax treatments change, and eligibility depends on your specific circumstances. Please verify current details on GOV.UK or with an accountant before making a financial decision, particularly for anything time-sensitive like the 0% VAT deadline.
Frequently asked questions
Do solar panels and battery storage qualify for 0% VAT?
Most residential installations currently do, until 31 March 2027. Commercial properties are generally not covered by this relief.
What is the Smart Export Guarantee?
A scheme requiring larger suppliers to pay you for surplus electricity exported to the grid. It typically requires MCS certification and a smart meter.
Are there incentives for commercial or industrial installations?
Possibly, via capital allowances — this depends on your business's circumstances and should be checked with an accountant.
Want to know what this actually means for your property?
Book a free assessment and we'll talk you through what applies to your specific project.
Book your free assessment