Energy grants available in 2023

The latest information from the government is that they are investing £12 billion in Help to Heat schemes to make sure homes are warmer and cheaper to heat. This includes the:

• Boiler Upgrade Scheme
• Energy Company Obligation (ECO)

This funding is not delivered directly by the government, but through installers, local authorities, energy companies and other bodies. (Source: gov.uk)

This information is correct as of 27th February 2023.

Boiler upgrade scheme

The Boiler Upgrade Scheme (BUS) is a government grant initiative to encourage property owners to install low carbon heating systems. Biomass boilers and air source heat pumps can be costly to buy and install. The BUS grant helps overcome the initial cost and make this new technology more affordable.

The scheme is set to run from 2022 to 2025 and is open to both domestic and small non-domestic properties in England and Wales. The grants available under the BUS scheme are:

• £5,000 towards an air source heat pump
• £5,000 towards a biomass boiler
• £6,000 towards a ground source heat pump (including water source heat pumps and those on shared ground loops)

One grant is available per property, and most homes are covered under the scheme. Visit the government website for more detailed information about eligibility and how to apply.

Energy Company Obligation

The ECO4 Order came into force on the 27th of July 2022 and will cover a four-year period until 31 March 2026. The ECO4 Order applies to measures installed from 1 April 2022.

ECO funding is available for low-income households in the UK who will need to contact their energy suppliers to apply. The final phase of this scheme is only just underway. More information can be found on the government website.

Smart Export Guarantee

The Smart Export Guarantee (SEG) is designed to offset solar lifetime costs. Under the scheme, homeowners who generate renewable energy receive payments for feeding solar-generated electricity into the national grid.

This government-backed initiative started in January 2020. More information about eligibility criteria is available through Ofgem. Renewable technology types which are covered under the scheme include:

• Solar Photovoltaic Panels (Solar PV)
• Wind turbines
• Micro combined heat and power (micro – CHP)
• Hydro generators
• Anaerobic digestion (AD)

Solar PV vs Solar Thermal

There are two types of solar energy panels available on the market, both of which utilise different technologies for different purposes.

These are:

• Solar Thermal: Primarily installed on your roof, these panels heat up your water by collecting sunlight that heats liquid stored in tubes. Once hot enough, it’s transported to your water cylinder, ready for your next bath or shower
• Solar PV: Panels that absorb sunlight and transform it into electricity for your house using silicon-based technology

These are both excellent, green-fingered options. The Government Green Homes Grant, which covered solar thermal panels is no longer available. However, the SEG scheme can now help to offset the cost of solar PV panels.

Being a relatively new technology with fewer available options, Solar PV technology can be expensive to install. Over a lifetime, however, the SEG scheme will help households recoup some of the initial financial outlay.

For the best results, install both solar thermal panels and solar PV panels on south-facing roofs or on the ground in direct sunlight.

Benefits of installing solar panels

There are various benefits associated with solar panels. If you’re wondering why it’s worth offering your customers solar thermal panels, then let us try to convince you:

• You reduce your environmental impact, with a saving of up to 600kg of carbon dioxide emissions every year
• You benefit from a warmer house and a 10% reduction (on average) in heating bills per year
• Solar thermal is more efficient than solar PV due to heat waves carrying more energy than sunlight. It also cuts out the transformation of thermal energy into electricity
• Solar thermal panels are cheaper than PV panels and work in cold climates due to their energy storage capacity
• Solar panels last up to 25 years with minimal maintenance

Average cost of solar panels

Check out our solar panel installation cost guide for a comprehensive look into all the costs involved in both types of solar panels.

FAQs

Is it worth getting solar panels in the UK?

The UK isn’t known for its sunshine. However, as long as your thermal solar panels are installed on your roof or in a spot that gets direct sunlight, they’re incredibly effective at drawing and storing heat from the sun, meaning they work all year round.

Can I install solar panels myself?

No. Due to their complexity and specific installation requirements, we recommend you hire a professional to install your solar panels so you can reap the most benefits.

What are the best solar panels?

We recommend speaking to a professional to determine which solar panels would be best for your home.