19/07/2023
GRANTS AND ASSISTANCE FOR GOING SOLAR. SOLAR PANEL INSTALLERS BECKENHAM.
www.solarpanelinstallersbeckenham.co.uk
Are you considering investing in solar panels for your home but find the costs daunting? What if we told you that government bodies and regulators like Ofgem could help you lighten that financial load and that there are grants specifically designed to make solar energy more affordable for UK residents?
In May 2023 alone, over 11,000 new solar arrays were installed in homes across the UK and solar panel grants have been a great help for many people who are now enjoying the benefits of clean, renewable energy without bearing the full cost. For example, Ofgem’s ECO4 can save you up to 100 per cent of the cost of solar panels.
In this article, we’re going to answer the following crucial questions for you:
• Can I make solar panels cheaper with a grant?
• What help or grants are there, and do I qualify?
• What’s the process, and is it easy?
We’ll unpack the world of solar grants, outlining what types of financial assistance are available, whether you’re eligible, and how to apply. We’ll provide a step-by-step guide to the process, so you can see how straightforward it can be.
Several solar panel grants and other incentives are currently available for UK homeowners, designed to encourage using renewable energy and reduce your household bills.
Eligibility for solar panel grants
The eligibility requirements for grants for solar panels can encompass a wide range of factors. These include the type and location of the property, the financial situation of the applicant, the energy efficiency of the building, and the specifics of the solar installation process.
It’s important to understand the specific eligibility criteria for each grant before applying, to ensure the time and effort invested in the application process are well-placed. In all cases, the exact details of these criteria will be outlined by the organisation administering the grant.
Energy Company Obligation 4 (ECO4) including LA Flex
The Energy Company Obligation (ECO) is a UK government scheme managed by Ofgem. It’s aimed at improving the country’s least energy-efficient homes, focusing on low-income and vulnerable households. The scheme obliges larger energy suppliers to deliver energy efficiency measures to domestic premises in Great Britain.
Under the ECO, there have been multiple phases, each with slight changes in focus and eligibility criteria. If you receive any of the following benefits, you could be eligible for ECO4 funding:
• Income-based Jobseekers Allowance (JSA)
• Income-related Employment & Support Allowance (ESA)
• Income Support (IS)
• Universal Credit (UC)
• Housing Benefit
• Working Tax Credit (WTC)
• Child Tax Credits (CTC)
• Pension Credit Guarantee
• Pension Credit Savings Credit
Anyone with additional Department for Work and Pensions (DWP) benefits could also be eligible for ECO4, regardless of whether they receive Universal Credit.
The primary focus of the grant is on homes occupied by their owners. However, it will also extend support to energy inefficient social housing and privately rented residences, provided the property owner permits works to take place.
How to apply for the ECO4 grant
Applying for an ECO4 grant is quick and straightforward, and there are a number of companies that offer the grant. These can be found through an online search. The application follows a similar process, whoever you choose to go through.
1. Follow the online application process to confirm your eligibility.
2. Once you have done this, you’ll receive an email containing a unique reference number and a document. This asks for your permission to contact the Department of Work and Pensions to confirm your benefits. The document can be digitally signed and returned.
3. Within a week, you should be contacted to arrange a free survey. The survey consists of a 10 – 15 minute inspection of your home’s energy efficiency measures and is designed to be minimally intrusive.
4. Once the survey is completed and your application approved, installing your solar panels can take up to eight weeks.
LA Flex (Local Authority Flexible Eligibility) is an extension of the ECO4 scheme. Under this initiative, local authorities can determine eligibility criteria for energy efficiency measures and identify households that may not have been eligible under the national criteria. However, they typically include conditions such as:
• The household is defined as low-income and is at risk of fuel poverty
• The property is hard to heat, often due to poor insulation or lack of a central heating system
• The residents are vulnerable in some way, such as being elderly, disabled, or having young children
It’s also important to note that private tenants can be eligible under LA Flex, with their landlords’ permission.
If you are eligible under ECO4, or LA Flex, you could be entitled to up to 100 per cent off your solar panels.
Solar Together
Solar Together is a group buying scheme for solar panels operating in local council regions of the UK. Its goal is to make solar power more accessible and affordable for homeowners and small businesses.
The scheme brings together households and local government authorities to create a collective buying group for solar panels for homes. Interested parties register, and solar panel providers bid for the opportunity to install their panels for the group. This typically results in a competitive installation price, lower than an individual household could negotiate.
Once a winning provider is selected, registered participants receive a personal recommendation tailored to their specific needs. They can then decide whether or not to go ahead with the installation.
The Solar Together scheme aims to promote the use of renewable energy, reduce carbon emissions, and help residents save money on their energy bills. It not only provides a platform for more cost-effective solar panel installations and high-quality installations, full technical surveys, and thorough customer service throughout the process.
Smart Export Guarantee (SEG)
This scheme came into effect on 1 January 2020 (after being introduced by the UK government), with the view to replace the previous Feed-in Tariff scheme. The SEG mandates that larger energy suppliers must offer an export tariff to their customers who generate their own renewable electricity, such as through solar panels or wind turbines.
Anyone who installs a renewable energy system, such as solar panels or wind turbines, with a capacity up to 5MW can qualify for the SEG. They must also have an export meter installed and a Microgeneration Certification Scheme (MCS) certificate, or equivalent document. While it’s not necessary to incorporate a solar storage battery into your system to be eligible for SEG, it could be a useful addition, ensuring no surplus energy is wasted.
How to apply for SEG
In order to receive payment under SEG, you will need to apply directly to a supplier offering SEG tariffs. The energy suppliers providing these tariffs are listed on the Ofgem website.
It’s worth noting that the supplier who provides your energy doesn’t necessarily need to be your SEG tariff supplier. These can be two separate entities.
Suppliers under the SEG are mandated to offer you a tariff, but they have the discretion to set the terms of that tariff, which could be either fixed or variable.
Be aware that these tariffs can shift over time, so it’s advisable to regularly review your current tariff to ensure it remains competitive.
If you possess a storage device like a household battery or an electric vehicle capable of importing and exporting electricity, you could benefit from the SEG. You can seek advice about this from your potential SEG tariff supplier.
Zero VAT
In the UK, the VAT (Value Added Tax) rate on most goods and services is 20 per cent. However, under government incentives, certain energy-saving materials and equipment, including the best solar panels, are eligible for a reduced VAT rate.
This reduced rate is currently 0 per cent until 31 March 2027, and it applies to the supply and installation of solar panels on residential properties in England, Scotland, and Wales.
This reduced VAT rate is part of the UK government’s efforts to encourage energy efficiency and the use of renewable energy sources.
Expired solar panel grants
There have been a number of solar panels grants that have recently expired. Such schemes typically had set durations or funding limits, meaning that once a certain date was reached or the available funding was exhausted, the grant would expire. This means while the grants could have provided significant assistance at the time, they are no longer available for new applicants. Here are a few examples of schemes that have now expired.
Feed-in Tariff
The Feed-in Tariff (FiT) was a UK government scheme designed to encourage the uptake of a range of small-scale renewable and low-carbon electricity generation technology.
Under the FiT scheme, homeowners who installed renewable electricity systems, such as solar panels, wind turbines, or hydroelectric power, could receive payments from their energy supplier. These payments were for the electricity they generated and used themselves, as well as any surplus electricity they exported back to the national grid.
Although the scheme closed to new entrants in March 2019, existing contracts, up to a maximum of 20 years, continue to be honoured.
Green Homes Grant
The Green Homes Grant was a government scheme designed to help homeowners and landlords in England make their homes more energy-efficient.
Under the scheme, vouchers worth up to £5,000 were issued to cover up to two-thirds of the cost of making energy efficiency improvements to homes. The types of improvements covered under the grant included insulation, low-carbon heating, draught proofing, and solar panels. For low-income households, the vouchers could be worth up to £10,000 and cover 100 per cent of the cost.
However, the Green Homes Grant scheme faced various criticisms, including difficulties in administration and accessing accredited installers, which led to a low take-up. The scheme was initially planned to run until March 2022, but it was closed prematurely in March 2021.
Renewable Heat Incentive (RHI)
The RHI aimed to encourage the uptake of renewable heat technology among householders and businesses through financial incentives. It was the first of its kind in the world and was introduced to help the UK meet its carbon reduction targets.
The Domestic RHI was launched in April 2014 and helped with the installation of biomass heating systems, ground or water source heat pumps, air-to-water heat pumps, and solar thermal panels. The scheme provided a financial incentive in the form of quarterly cash payments over seven years to homeowners, landlords and self-builders who installed or had installed eligible renewable heating technology.
The scheme’s goal was to compensate for the difference between the cost of installing and operating these heating systems compared to fossil fuel systems, thus making renewable heat sources a more attractive option.
The RHI scheme officially closed to new applicants on 31 March 2021. Existing participants will continue to receive their payments for the full term of their agreement.
Other ways to fund solar panels
Several other organisations offer assistance to fund solar panel installations, focusing on mortgage holders specifically.
Barclays Greener Homes
As part of its commitment to encouraging energy-efficient home improvements, Barclays has launched the Greener Home Reward scheme. This initiative is designed to assist its UK residential mortgage customers in installing solar panels. By registering online for the scheme, eligible customers can enjoy a financial incentive towards solar technology.
Under this scheme, Barclays offers a cash reward of £1,000 to its residential mortgage customers who have installed and fully paid for their solar panel systems. However, to ensure quality, a business registered with TrustMark must carry out the installation.
Once the installation is complete, the customer is eligible for the £1,000 cash reward, thereby making their shift to sustainable energy more affordable.
Lloyds Bank Eco Home Reward
If you already have, or are applying for, a Lloyds Bank mortgage, or are borrowing funds for home improvements, you can claim up to £500 cashback for a solar panel installation.
Once you’ve checked your eligibility, and registered either online or in person, use your preferred supplier to install your solar panels, before claiming your cashback.
Halifax Green Living Reward
Whether you’re an existing Halifax mortgage holder, in the process of applying for one, or securing funds for home improvements, you’re eligible to claim up to £500 cashback for installing solar panels.
To take advantage of this offer, you’ll first need to verify your eligibility and register. Following this, you can proceed with the installation of your solar panels using the supplier of your choice. Once the installation is completed, you’re ready to claim your cashback.
NOTE: We claim no right or title to this article which is shared for information purposes only. The article has not been edited, but has been shortened to fit within with our blog restraints. The author is fully acknowledged as Katharine Allison and the article can be found in full at Independent dot co dot uk.
Statistics, systems and financials quoted should be taken as general information only and may not be right for your specific premises and circumstances. You are strongly advised to consult a solar panel installation professional and your local authority before undertaking any financial commitment.
If you are thinking of going solar, get a FREE quote from SolarQuote Beckenham. Get information and updated costs right for your premises and situation.
www.solarpanelinstallersbeckenham.co.uk