Overall, there are six notable solar incentives for solar panels in the UK that will be covered in this guide: *Available solar panel grants in the UK as of September 2024 While some of the government initiatives are completely free solar panel grants, others are loans or reductions in VAT that count as solar panel government schemes.
Numerous incentives are available to homeowners looking to install solar power systems. On 1st April 2022, the UK switched from ECO3 to ECO4, which will run until 2026. The Energy Company Obligation has seen the UK government pledge £4 Billion across the next four years to raise the energy ratings of UK homes and reduce carbon emissions.
Capital allowances on solar panels are tax deductions that businesses can claim on the cost of installing solar panels in commercial properties. The UK government offers tax relief in the form of capital allowances to encourage businesses to invest in renewable energy and reduce their carbon footprint.
The average home can save more than £1,100 every year with solar panels! There are several solar panel grants and incentives currently available in the UK, aimed at reducing the cost of solar panels, your households’ energy bills and encouraging the adoption of renewable energy. How much could you get?
Overall, capital allowances on solar panels can provide a valuable tax relief for businesses investing in renewable energy and can help to reduce the cost of transitioning to a more sustainable and energy-efficient business model. The Government is offering tax breaks for the installation of solar panels until 31 March 2023.
In Sweden, there is the Green Deduction, a tax incentive that directly applies to the total cost of a solar panel system to the value of £3,500 a year. The 0% VAT on solar panels is also available in a number of European countries. For more information on international solar panel grants and initiatives, visit our dedicated page.