What solar incentives are available in 2020?

UK Solar Panels

Solar panels offer some of the best benefits, including lower energy bills, increased self-sufficiency, and becoming more environmentally-friendly, so it is likely you are already sold on the idea of solar panels.

If you’re just looking to increase your home’s energy efficiency then make changes such as replacing old light bulbs with new energy-saving ones or replacing your old windows & doors with new uPVC windows and doors is a great way to bring your energy bills down.

However, like many, it could be that you are being held back by the upfront costs needed to purchase and install solar panels. If so, then you may be interested to know about the current solar incentives that are available to you in 2020.  

Although you may have already heard that a lot of government funding schemes that were originally set up to help cover the costs of installing solar panels in homes across the UK have come to an end, that doesn’t mean that there aren’t still several incentives in place to help you reduce your reliance on the grid; you just need to know where to find them!

The Grid Incentive

An increasingly popular solar panel incentive in the UK, the Grid Incentive works by installing solar panels and battery technology on your property so that you can generate and store your own energy, making you less reliant on the grid.

The company will then trade any surplus energy that you have with other people on the national grid.

Therefore, not only will you be saving money on your energy bills, an estimated £514 per year, but you will also be part of a community that trades electricity at a cheaper rate than the standard energy suppliers.

In order to qualify for this scheme, you need to:

  • Be a UK homeowner
  • Have suitable roof space for the installation of solar panels

The Smart Export Scheme

Launched by the government in January 2020 to replace the Feed-in tariff, the Smart Export Scheme pays households who generate renewable electricity for exporting any that they don’t use to the national grid.

If you do want to take advantage of this scheme to earn money on your solar panels, then you will need to ensure that you install a smart meter so that you can accurately measure your electricity export.

It is also vital that you shop around before committing to an SEG energy tariff to ensure that you are getting as much money for your electricity as possible.

This scheme is a good way of recouping some of the money that you spent on having solar panels installed; however, it is worth noting that even if you choose the most generous tariff on the SEG scheme, it will still take a long time to pay back the total cost of your solar panels.

Low-interest loans

If you want to pay for your solar panels yourself outright, but do not have the money to do so, then you may want to look into lending companies that are providing low-interest rate loans with very reasonable monthly payments, specifically for those wanting to invest in solar panels.

The benefit of this way of paying for solar panels is that you can use the money you save on your monthly electricity bills to help pay towards your monthly loan repayments.