As the world shifts towards more sustainable energy sources, the UK government and various energy suppliers are offering enticing financial incentives to encourage households to adopt solar power. These grants and incentives can significantly reduce the cost of installing solar panels, making it an affordable option for many Brits. Here’s a comprehensive guide to the solar cash grants available in the UK, including specific amounts that can be availed.
Smart Export Guarantee (SEG)
The Smart Export Guarantee (SEG) is a government-backed initiative that replaced the Feed-in Tariff (FiT) scheme. Under the SEG, energy suppliers pay households for the excess electricity their solar panels generate and export back to the grid.
Amount Available: The rates vary by supplier, but as of the latest figures, households can earn between 3p and 5.5p per kWh of electricity exported. For an average household with a 4kWp solar system, this could translate to earnings of approximately £100 to £200 per year, depending on the amount of electricity exported.
Energy Company Obligation (ECO)
The Energy Company Obligation (ECO) scheme requires large energy suppliers to help households improve their energy efficiency, which can include funding for solar panel installations. This scheme is particularly targeted at low-income households and those in vulnerable situations.
Amount Available: While the exact amount varies based on the supplier and the specific circumstances of the household, eligible applicants can receive grants covering up to 100% of the installation costs for solar panels. On average, this can amount to several thousand pounds, depending on the size and type of the solar system installed.
Local Authority Grants
Many local authorities across the UK offer grants and incentives to encourage the adoption of renewable energy. These grants can vary widely in terms of availability and amount.
Amount Available: Local authority grants can range from a few hundred to several thousand pounds. For instance, some councils offer grants of up to £2,500 for installing solar panels. It’s important to check with your local council for specific details and eligibility criteria.
Renewable Heat Incentive (RHI)
The Renewable Heat Incentive (RHI) primarily supports renewable heat technologies, but it can also benefit households that install solar thermal systems for heating water. The RHI pays homeowners for the heat they generate using renewable technologies.
Amount Available: For solar thermal systems, households can receive quarterly payments over seven years. The exact amount depends on the amount of renewable heat generated, but on average, households can receive around £300 to £500 per year, totaling up to £3,500 over the seven-year period.
How to Apply for Solar Grants
Research and Compare: Start by researching the various grants and incentives available. Compare the rates and terms offered by different energy suppliers under the SEG and check with your local authority for any available grants.
Get Quotes: Obtain quotes from certified solar panel installers. These quotes are often required when applying for grants and will help you understand the potential costs and savings.
Submit Applications: Follow the application process for each grant or incentive. This usually involves providing personal details, quotes from installers, and other relevant documentation.
Install and Start Saving: Once approved, proceed with the installation of your solar panels. Begin generating your own electricity, reducing your energy bills, and earning from the excess energy you export.
Conclusion
Solar power is not only an environmentally friendly choice but also a financially savvy one with the right grants and incentives. By taking advantage of the Smart Export Guarantee, Energy Company Obligation, local authority grants, and the Renewable Heat Incentive, Brits can significantly reduce the upfront costs of installing solar panels and enjoy long-term savings on their energy bills. Don’t miss out on these opportunities to make your home more sustainable and cost-effective.
For more detailed information and assistance with the application process, contact your local energy supplier or a certified solar panel installer today.