Solar grants, SEG, 0% VAT and ECO4

0% VAT until 31 March 2027

Installing solar panels and batteries in homes is zero-rated for VAT until 31 March 2027. From 1 April 2027 it is due to revert to the reduced 5% rate (HMRC VAT Notice 708/6). Your installer applies this. You don't need to claim it.

Smart Export Guarantee (SEG)

Under the SEG, larger electricity suppliers must offer a tariff that pays you for electricity you export to the grid. Ofgem says:

• You can choose any SEG supplier. It needn't be your current energy supplier.
• Rates and contract terms are set by each supplier, but must always be above zero.
• For solar up to 50kW, you'll need to show the installation and installer are suitably certified, usually with an MCS certificate, plus an export-capable smart meter.

Mandatory SEG suppliers for 2026/27 include British Gas, E, E.ON Next, EDF, Utility Warehouse, Octopus, OVO, ScottishPower, So Energy and Utilita (Ofgem list). Compare rates, because they vary widely.

ECO4

The Energy Company Obligation (ECO4) is funded through energy suppliers and aimed mainly at low-income and vulnerable households. The government has extended it to 31 December 2026. Solar may be included as part of a wider package of improvements, usually alongside electric heating, rather than as a standalone grant. Eligibility is set by suppliers and councils, so ask your energy supplier or Telford & Wrekin / Shropshire Council about local referral (“LA Flex”).

Great British Insulation Scheme (GBIS)

GBIS ended on 31 March 2026 and is closed to new installations (Ofgem). It mainly funded insulation, not solar.

What's next

The Energy Saving Trust notes the government's Warm Homes Plan is expected to bring low and zero-interest loans and fully funded support for people on low incomes. Details were still being confirmed when this guide was written.

Be wary of anyone cold-calling about “free solar panels”. Check eligibility directly with your energy supplier or council.

Related: Solar panel costs · Checking MCS installers