UK solar and battery benefits, October 2026
What helps you right now, what it is worth to a Faversham house, and when it ends. Every figure comes from a page we opened on 7 October 2026.
1. 0% VAT on the install, until 31 March 2027
GOV.UK VAT Notice 708/6 sets a zero rate for installing energy-saving materials in homes, including solar panels, from 1 May 2023 to 31 March 2027. Batteries qualify too: the notice covers a standalone battery for storing grid electricity and a battery retrofitted to solar, since 1 February 2024. From 1 April 2027 the reduced rate of 5% applies. On a system priced at £8,500 to £12,500, that is about £400 to £600 of VAT you would otherwise pay (our arithmetic). until the deadline.
2. Cheaper electricity, and no VAT on it
Ofgem's price cap for 1 October to 31 December 2026 is an average 26.32p per kWh for electricity and a 54.83p daily standing charge, for Great Britain on a standard variable tariff paid by direct debit. HMRC Revenue and Customs Brief 10 (2026) removes VAT from domestic electricity in Great Britain from 1 October 2026 to 31 March 2027. Every unit your panels make and you use is a unit you do not buy at that price.
3. Payments for the power you export
Ofgem says Smart Export Guarantee rates must always be above zero. The supplier pages we opened on 7 October 2026 show a wide spread. Octopus pays 4.1p per kWh on its plain fixed SEG, open to anyone, and 12p on Outgoing Octopus. British Gas pays 12p to its own electricity customers and 3p to others. E.ON Next pays 17.5p on a 12-month fixed tariff for systems installed by E.ON, and EDF pays 18p for systems bought from EDF. The Energy Saving Trust says you typically get about 12p. See the export rates guide.
4. Plug-in solar, legal in Great Britain from 27 August 2026
Approved plug-in kits can now be used in Great Britain. GOV.UK says each kit makes up to 800W and could save households up to £110 a year. The Energy Saving Trust says kits start from around £450 and save about £70 to £100 a year. Only one device per home is allowed at the moment, you must register it before you use it, and renters and flat owners need permission from the landlord or freeholder. Kits with built-in batteries are not covered. Rules in full.
5. Cheap overnight rates for batteries
Octopus Energy's public tariff data for the South East, read on 7 October 2026, shows Intelligent Octopus Go on a 12-month fixed deal at 7.6p per kWh at night, Octopus Go variable at about 8.2p for its cheap window, Go 12-month fixed at 9.5p and Cosy at about 12.6p for its cheap periods. A battery can fill at those prices, and the day rates are much higher. Read the tariffs guide for the honest sums.
6. Electric cars and heat pumps make it stack
MCS counted 210,000 certified installations in the UK in the first half of 2026, almost 150,000 of them solar and 36,000 of them batteries, with 92% of the batteries going onto homes with solar. MCS also quotes the Energy Minister saying a typical home could save up to £550 a year by installing a heat pump, solar and a battery together. A car or heat pump gives a battery more to do. See EV charging with solar.
7. Loans and grants
The Warm Homes Plan, announced on GOV.UK on 20 January 2026, promised government-backed zero and low-interest loans for solar, batteries and heat pumps. GOV.UK's lender page, updated 17 September 2026, says applications from lenders for the first stage have closed and a further window is expected later in 2026, so we do not count loans in our sums. The Boiler Upgrade Scheme grant is £7,500 towards a heat pump, rising to £9,000 for oil or LPG homes from 21 July 2026, and flat owners and renters can get up to £500 towards a chargepoint until 31 March 2027.
What this means for a Faversham house. The 0% VAT deadline is the only benefit with a hard end date, and quotes, surveys and network approval take weeks. If solar is right for you, starting this autumn leaves time to be installed before 31 March 2027. If a battery is only a maybe, check the paybacks first.
Benefits questions
Which benefit is worth most?
For most houses it is the saving on power you use directly, then export payments, then the 0% VAT on the install. The VAT relief is a one-off saving of about 5% of the price, and it ends on 31 March 2027.
Are there grants for solar panels?
The Energy Saving Trust says there are no dedicated UK Government solar panel grants for most homes. A Warm Homes Loan Scheme is being set up, with lenders still being signed up, and we found no page confirming that loans are available to the public yet. Income-eligible households can ask Swale Borough Council what grants it runs.
Does the electricity VAT cut change the sums?
A little. Removing VAT from household electricity from 1 October 2026 keeps what you pay per unit at 26.32p, which is the Ofgem price cap figure our estimates use. It also means a unit you generate and use is worth 26.32p, not that figure plus VAT.
Last reviewed 7 October 2026. Rules and rates change, so check dates before you sign. All sources.
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