Costs and savings
| Item | Typical cost |
|---|---|
| Solar panels, about 4.5kWp | About £7,600 |
| Home battery | About £5,000 to £8,000 |
| New inverter (after about 12 years) | Ask your installer |
VAT
Solar panels and batteries fitted in homes have 0% VAT until 31 March 2027. From 1 April 2027 the rate goes to 5%.
Getting paid: the Smart Export Guarantee
The Smart Export Guarantee (SEG) makes some energy firms pay you for spare power you send to the grid. Each firm sets its own rate. Rates must be above zero. Shop around. A typical rate is about 12p per unit. It covers England, Scotland and Wales.
What is payback?
Payback is how long it takes for savings to cover what you paid. Example: you pay £7,600 and save about £760 a year. That is 10 years to pay back.
| Place | Home all day | Out all day |
|---|---|---|
| London | 9 years | 9 years |
| Manchester | 10 years | 11 years |
| Aberystwyth | 9 years | 10 years |
| Stirling | 11 years | 12 years |
Grants
There's no grant for solar that everyone can get. But some lower-income homes can get free upgrades, which can include solar panels, through schemes like the Warm Homes: Local Grant. See grants, VAT and official help below.
Grants, VAT and official help
On benefits or a low income? See benefits and free help.
These are official government and regulator websites. We link to them so you get the latest rules straight from the source.
- VAT on energy-saving materials (GOV.UK) (opens official site)
The official VAT rules. There's 0% VAT on home solar panels and batteries until 31 March 2027, then 5%. - Find ways to save energy in your home (GOV.UK) (opens official site)
The government's checker for energy-saving ideas and grants you may be able to get. - Warm Homes: Local Grant (GOV.UK) (opens official site)
England: free upgrades, which can include solar panels, for some lower-income homes. - Warm Homes Plan (GOV.UK) (opens official site)
The government's plan for cutting energy bills and upgrading homes (January 2026). - Energy Company Obligation, ECO4 (Ofgem) (opens official site)
Not a grant: energy firms choose which homes to help. Mainly lower-income homes with an EPC rating of D to G. Solar is rarely funded on its own. Ends 31 December 2026, and no ECO5 is planned. - Great British Insulation Scheme (Ofgem) (opens official site)
Closed on 31 March 2026. Shown here for reference only. - Boiler Upgrade Scheme (GOV.UK) (opens official site)
Money off heat pumps and biomass boilers. Not for solar panels. - Smart Export Guarantee (Ofgem) (opens official site)
How you get paid for the spare power you send to the grid. - Home Energy Scotland (opens official site)
Scotland: free advice, grants and loans. - Nest (GOV.WALES) (opens official site)
Wales: free advice and home upgrades for some households. - Affordable Warmth Scheme (Housing Executive) (opens official site)
Northern Ireland: energy-saving grants for lower-income homes. - MCS: advice for homeowners (opens official site)
Find a certified installer and learn what to expect.
What's offered where you live?
We don't store your postcode. It's sent to postcodes.io, a free postcode service, to find your area. This tells you what's offered nearby, not whether you qualify.
Where our facts come from
Figures are typical and approximate. Last reviewed October 2026.