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Benefits

Current UK solar and battery benefits, October 2026

Last reviewed 7 October 2026. Written for Broadstairs, Kent. Figures are estimates, not quotes.

Short answer. As of October 2026: 0% VAT on installed solar and batteries to 31 March 2027, 0% VAT on domestic electricity from 1 October 2026 to 31 March 2027, paid export under the Smart Export Guarantee, legal plug-in solar, and a means-tested local grant. There is no general solar grant.
Close view of black solar panels on mounting rails on an old clay-tiled roof with a chimney stack, gulls on the ridge and the grey sea beyond

0% VAT on solar and batteries

HMRC's VAT Notice 708/6 covers installations of energy-saving materials supplied between 1 May 2023 and 31 March 2027, and from 1 April 2027 the reduced rate of 5% applies. Batteries are in scope, including electrical battery storage fitted on its own. On a system priced at £8,500 to £12,500, 5% would add roughly £400 to £600 (our arithmetic).

0% VAT on the electricity you buy

HMRC says a temporary zero rate of VAT applies to domestic electricity in Great Britain from 1 October 2026 to 31 March 2027, announced on 21 July 2026. Ofgem's price cap from 1 October to 31 December 2026 is 26.32p per kWh for electricity, with a standing charge of 54.83p a day, averaged across England, Scotland and Wales on direct debit, and the figures leave VAT out for that period. Your own bill shows the rate you actually pay. This site values a unit you do not have to buy at 26.32p.

Paid export: the Smart Export Guarantee

Suppliers pay you for power you send to the grid. Ofgem says each supplier sets its own rate, and it must always be above zero. We list the rates we found in our Smart Export Guarantee guide. The Energy Saving Trust says you typically get around 12p for each unit.

Plug-in solar is legal

GOV.UK says that from 27 August 2026 plug-in solar kits can be plugged into homes across Great Britain. Each kit produces up to 800W. The Energy Saving Trust puts a kit at from about £450, saving £70 to £100 a year. See our guide for flats and rented homes.

A means-tested grant

The Energy Saving Trust says there are no dedicated UK Government grants for solar panels for most homes. There is a means-tested route. Thanet District Council says its Warm Homes: Local Grant is open, delivered with E.ON, for homes with a low energy rating (typically EPC band D to G) and a household income below £36,000, and the work can include solar panels. The council's energy team can check whether you qualify.

What is not on offer

We have not found a general grant for solar panels or batteries on an ordinary home, and we do not promise one. Check the sources below before you rely on any figure here, because rules and rates change.

Questions people ask

Can I combine 0% VAT and a grant?

The VAT rate is set by the installer on the invoice. A grant such as the Warm Homes: Local Grant is separate and income-tested. Ask the council's energy team how it applies to you.

Will 0% VAT on installs be extended?

We do not know. It is set to end on 31 March 2027, then 5% applies. Plan for that date.

Do these benefits apply to flats?

0% VAT applies to residential accommodation. The roof of a block usually belongs to the freeholder, so panels need their agreement. A battery inside the flat and plug-in solar are other routes.

Want numbers for your own home? Try the estimator or ask for a free quote.

Sources

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