
There are now more than 1.5million homes across the UK with solar panels and it’s no surprise that this number is expected to climb this year.
Generating solar energy and using it yourself can mean bigger savings – up to £350 per year on bills for a typical household.
Here’s why you should make 2026 the year you invest in solar panels.
In 2022, the government cut VAT on a number of energy-saving products, including solar panels, to encourage more homeowners to install them by making them cheaper. This is planned to be in place until March 2027, so while the upfront cost is lower, 2026 is a good time to invest in solar panels.
The 0% VAT applies to all residential properties, and you can only take advantage of the rate if you purchase your panels from the same company that you use to install it – which you can do with us!
Batteries and air source heat pumps are also VAT exempt, which when combined with solar panels can reduce your reliance on the grid and lower your energy bills even further.
You have until April 1 2027 to take advantage of the current no VAT, when the rate will go up to 5%.
The 2025 Autumn Budget confirmed that the ECO4 (Energy Company Obligation) scheme would officially end on March 31 2026. This government grant is designed to help low-income households improve poor energy efficiency ratings (EPC D or lower). If your household income is under £31,000 or you’re on Universal Credit or Pension Credit, you may qualify to have solar panels installed.
The scheme can potentially cover installations of £7,000 to £20,000. The good news is that once it ends, people won’t be left without as the government is investing £13.2billion funding between now and 2030 into the Warm Homes Plan, to help make home energy upgrades for low-income households and reduce energy bills. The specifics of this plan are yet to be announced.
A home with solar panels may be more attractive to buyers if they are eco conscious or looking to lower their energy bills – and they may be willing to pay more for it.
Back in 2021 trade body Solar Energy UK found that a typical home with solar panels could increase in value by up to 2%. Last year, home improvement experts BOXT said the increase could be as much as 14%.
How much value solar panels add to your home can depend on a number of factors, including the age of your solar panels (the newer the better), if you are using the Smart Export Guarantee (SEG) scheme to sell unused power back to the grid, and whether you have a battery storage system in place.
A battery storage system stores the electricity you generate (but don’t use immediately) from your solar panels, allowing you to use that power later in the day. For example, while at work all day you won’t need to power your home – the battery could store all that excess for you to use in the evening, to charge an electric car, or power your dishwasher, instead of paying for power from the grid. Having a battery in addition to solar panels will make your home even more appealing to buyers.
From solar panels to battery storage, to air source heat pumps and electric vehicle charging, we deliver great value, green home energy solutions that help our customers save money on their energy bills while reducing their impact on the environment.
Try our instant quote tool to get a free estimate for solar panels or contact our experts at sales@eerenewables.co.uk