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The Smart Export Guarantee is currently the only type of solar panel funding available in the UK.
The SEG enables small-scale low-carbon electricity generators to receive payments for the surplus energy they export back to the grid.
Although this is not a direct government grant, all licensed suppliers must now offer an export tariff to their customers. Those suppliers with over 150,000 customers are obligated to offer a tariff, while those with fewer can partake on a voluntary basis.
All homeowners with regular solar panel systems (up to 5MW capacity) are eligible under the SEG. In addition, the house must be fitted with a smart meter, in order to measure the exports. Most energy suppliers also offer a tariff for energy exported from solar battery storage systems.
This incentive makes solar panels a great type of green home improvement project.
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Reduced VAT for Energy-Saving Products
Solar panels are eligible for a possible 5% tax reduction under the new VAT pricing system for energy-saving products.
If you are over 60 years of age or are receiving income or disability benefits, you may qualify for this tax reduction. There are specific eligibility criteria, and the tax reduction can either apply to the whole product or only the installation costs.
You can read the government’s website for the full details.
Renewable Heat Incentive (RHI)
If you are interested in heating your home using solar thermal panels, you could benefit from the RHI scheme. Initially introduced for the commercial sector, the scheme was extended to domestic use in 2014. It is scheduled to end on 31 March 2022.
Its purpose is to encourage the switch from traditional to renewable heat technologies, such as solar water heating, biomass boilers, pellet stoves and more, to reduce the country’s carbon emissions. It provides 7-year long support for owners of such systems through quarterly cash payments, the amount of which depends on the type of technology and the latest related tariffs.
The property must first obtain an Energy Performance Certificate (EPC) assessing its energy efficiency and how it could improve, which is required for the RHI application.
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How to Apply for Funding
Each solar panel funding option has its set of eligibility criteria and application process, so it is important that you read the relevant guidelines and instructions.
You can find further information regarding the different energy grants on the Government’s website, where you will find all the information you need about the aids related to solar panels, as well as grants for other renewables, such as heat pumps and boilers.
After collecting the information, if you decide to invest in solar power or other sources of clean energy, you can head back to GreenMatch to receive free, non-binding quotes for solar panels, heat pumps and boilers.
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