Funding solar panels
One of the most well-known subsidies on solar panels is the ECO4 Scheme. The ECO4 Scheme replaced the earlier known EO3 Scheme, and will be active until march 2026. Thanks to ECO4’s new conditions, more people are now eligible for the energy-saving subsidy. The ECO4 Scheme helps households make the switch to energy-efficient solutions. It allows them to trade in old systems for sustainable alternatives, such as solar panels. Mostly low-income, fuel-poor and vulnerable households receiving benefits of the ECO4 Scheme.
Conditions of the ECO4 Scheme
Not sure if you’re eligible for the ECO4 Scheme? Make sure to check out the ECO4 Scheme conditions:
- Do you currently possess an inefficient heating system within the D-G energy efficiency band?
- Do you own and live in the house, or live in private rented accommodation?
- Are you receiving government benefits (e.g. child benefits or income support)?
Based on the conditions above, you can apply for sustainability measures. Do you meet the above conditions, but live in an all-electric home with a biomass boiler or a District Heat Network? Then you are ruled out on the ECO4 Scheme.
0% VAT rate solar panels
The installation of solar panels is subject to a reduced VAT rate of 0% until 31 December 2027. The 0% VAT rate applies to anyone with a private or residential connection. The reduced VAT rate also applies to all the necessary work carried out to install solar panels. For example, this includes the electrical and plumbing work, as well as the finishing work. The reduced VAT rate applies to all parts and accessories of the technical installation specific to the system in question, such as:
- Fastening materials
- (Micro) Inverters
Also keep in mind that, when opting for solar panels, adding a home battery also provides 0% VAT. When doing so, you get a fully sustainable and largely independent energy network in one fell swoop.