Grants
Key Solar PV Incentives in 2025
1. Energy Company Obligation (ECO4)
Offers fully funded or subsidised solar installations (up to £6,000–£10,000), targeting low-income households in EPC bands D–G who receive certain benefits (e.g., Universal Credit)
Also extended through LA Flex, allowing councils to broaden eligibility to moderate-income or vulnerable households
2. Smart Export Guarantee (SEG)
Pays for excess electricity exported to the grid—typically £0.15–£0.25 per kWh, significantly reducing your payback period
Requires an MCS-certified install and a smart export meter.
3. 0% VAT on Solar Panels & Batteries
VAT on supply and installation is 0% (normally 5%) until March 31, 2027, saving hundreds to thousands upfront
4. Home Upgrade Grant (HUG Phase 2)
Delivers up to £10,000 grants for solar and energy improvements to low-income, off-grid homes (EPC D–G), via participating councils (ends March 2025) 5. Warm Homes Plan (Local Grants)
Under the 2025–28 initiative, up to £30,000 is available for comprehensive home upgrades, including solar PV, for low-income and social housing households
6. Regional & Community Schemes
Home Energy Scotland: up to £6,000 grant or interest‑free loan for solar in Scotland
Welsh Nest Scheme: free installations for low-income/renters in Wales with poor EPCs
Solar Together: council-led bulk-buying scheme offering 10–25% cost cuts via group orders
✅ Summary Table
| Scheme | Benefit | Eligibility |
|---|---|---|
| ECO4 + LA Flex | Up to £6–10k subsidy | Low-income, low EPC, benefit claimants |
| Smart Export Guarantee (SEG) | £0.15–£0.25/kWh for exported power | MCS install + smart meter |
| VAT Relief | 0% VAT until Mar 2027 | All domestic installs |
| Home Upgrade Grant (HUG 2) | Up to £10k | Low-income, off-grid homes |
| Warm Homes Plan | Up to £30k | Low-income & social housing |
| Regional Schemes | Varies (£6k max) | Scotland, Wales, selected councils |
| Solar Together | 10–25% group discount | Homeowners in participating areas |
Key ASHP Grants & Incentives in 2025
1. Boiler Upgrade Scheme (BUS) – £7,500 Grant
Offers £7,500 off an ASHP installation in England & Wales (also for ground-source systems)
Extended until 31 December 2027 f
2025–26 budget increased to £295 million, up from £205m
Installer must be MCS-certified and apply on your behalf
2. Energy Company Obligation (ECO4)
Covers up to 100% of the cost for low-income or fuel-poor households across England, Wales, and Scotland
Includes retrofit of heat pumps as part of wide-scale home improvements.
Runs through March 2026
3. Warm Homes Plan & Local Grants
Broad funding pot (~£3.2 billion for 2025–26) offering up to £15,000 for low-carbon heating via local authorities
Covers both insulation and ASHP installations, administered locally.
4. Regional Schemes
Scotland
Home Energy Scotland: £7,500 grant + £7,500 interest-free loan
Warmer Homes Scotland: Up to £10,000 grant for eligible households
Wales
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Nest Scheme: Covers the full cost of ASHPs for low-income homes
Northern Ireland
NISEP: Up to 100% funding depending on income
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5. 0% VAT
Domestic ASHP installations have 0% VAT until March 2027, saving potentially £750–£1,500
6. Regulatory Changes & Simplified Planning
Since May 29, 2025, the requirement to maintain a 1 metre boundary distance has been removed, easing installations
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Consultations are underway to include hybrid or air-to-air systems in future BUS expansion
✅ Summary Table
| Scheme | Value | Eligible Areas | Notes & Deadlines |
|---|---|---|---|
| Boiler Upgrade Scheme | £7,500 | England & Wales | Until Dec 2027; via MCS installer |
| ECO4 | Up to 100% | UK-wide (incl. Scot.) | For low-income households, until 2026 |
| Warm Homes / Local Grants | Up to £15k | England | Administered by local authorities |
| Home Energy Scotland | £7.5k + £7.5k loan | Scotland | Apply via Home Energy Scotland portal |
| Warmer Homes Scotland | Up to £10k | Scotland | Targeted at vulnerable households |
| Nest Wales Scheme | Full cost coverage | Wales | For low-income homes |
| NISEP | Up to 100% | Northern Ireland | Income-dependent |
| VAT Relief | 0% VAT | UK-wide | Until March 2027 |
| Planning Relaxation | N/A | England | Removes 1 m boundary rule from May 2025 |