Subsidies and the VAT position
Residential solar installation is currently zero-rated for VAT at 0% to 31 March 2027 (HMRC, VAT Notice 708/6). On a combined solar and battery cost of £8,000 to £14,000 or more, that relief can represent a saving of between £1,000 and £3,000, according to renewableenergyhub.co.uk (2026). Confirm with your installer that they are applying the correct VAT treatment to the full system, not just the panels.
Beyond VAT, the main current support is the Smart Export Guarantee (SEG), which requires electricity suppliers with at least 150,000 domestic customers to pay you for surplus electricity exported to the grid. The rate is supplier-set and must always be above zero, but it varies significantly between suppliers, so comparing SEG tariffs pays. The installation must be certified under MCS or an equivalent scheme to be eligible. Our solar panel grants and funding guide covers the broader subsidy landscape.
The Ofgem standard variable electricity unit rate is 27.69p per kWh under the price cap (renewableenergyhub.co.uk, 2026). That rate is what every kilowatt hour you generate and use yourself saves you, which is why self-consumption matters more than export in most household economics.