Octopus Flux
Pays 28p/kWh for export between 4pm and 7pm (peak windows). For a battery-equipped solar customer who can time-shift midday solar into the 4-7pm window, the export income changes substantially.
Solar Panel Funding: SEG, VAT, Smart Tariffs and Finance
Solar PV does not attract a single headline grant the way a heat pump does. What it does have is a stack of smaller wins that add up to a strong financial case: 0% VAT on the install, the 15p/kWh Smart Export Guarantee rate from EDF Energy, consumer finance through Greenscape, plus the Warmer Homes scheme for eligible households. This page walks through how the funding works for solar specifically.
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Google Rating: 4.5
Trustpilot: (368) 4.6 Based on 368 reviews The solar funding stack
There is no single "solar grant" in the way the BUS grant works for heat pumps. Instead, solar funding is a combination of:
| Component | Approximate value |
|---|---|
| 0% VAT on energy-saving materials | 20% saving on the install (around £1,500-£3,500 on typical residential systems) |
| Smart Export Guarantee (SEG) | £150-£300/year for typical residential systems |
| Smart tariff peak export rates | Up to 28p/kWh for export during peak windows (vs 4p flat on basic SEG) |
| Self-consumption savings | £400-£900/year for typical residential systems |
| Battery storage uplift | Self-consumption rises from 25-35% to 75-85% |
| Consumer finance | Spreads the upfront cost across 5-10 years |
For a 4 kW residential solar install at around £7,500 with battery storage at around £6,800, the typical 25-year payback is 7 to 10 years on cash purchase, faster with smart tariff arbitrage, and immediately cash-flow neutral on finance.
0% VAT on energy-saving materials
The single biggest funding lever for most solar customers. Domestic solar PV, batteries and the install labour all qualify for 0% VAT under the UK's energy-saving materials relief. This represents a 20% saving compared with the standard VAT rate.
The 0% rate currently runs to 31 March 2027. After that it is expected to revert to 5% (the previous reduced rate). For customers installing in 2026, this is a meaningful window. A 6 kW solar + 13 kWh battery install would cost approximately £3,000-£3,500 more if installed after the relief ends, all other things being equal.
The 0% VAT is built into our prices. The proposal figure is the figure you pay. See the 0% VAT deep dive.
Smart Export Guarantee (SEG)
The Smart Export Guarantee is the regulated UK scheme that requires licensed electricity suppliers to pay you for the solar electricity you export to the grid. It replaced the Feed-in Tariff (FIT) in 2020.
Unlike FIT, SEG does not have a fixed government rate. Each supplier sets their own SEG export rate, ranging from 4p per kWh on the basic flat tariffs to 15p per kWh on stronger market rates. EDF Energy pays 15p per kWh, at the top of that range.
For most residential systems, the export earnings break down roughly as follows:
| System size + setup | Typical annual export | SEG earnings (varies by tariff) |
|---|---|---|
| 4 kW solar, no battery | 2,400-2,800 kWh | £100-£280 |
| 4 kW solar + 10 kWh battery | 800-1,200 kWh | £80-£220 (less export, more self-consumption) |
| 6 kW solar, no battery | 3,800-4,400 kWh | £150-£440 |
| 6 kW solar + 13 kWh battery | 1,400-1,800 kWh | £100-£320 |
| 8 kW solar + 16 kWh battery | 1,800-2,400 kWh | £150-£430 |
A battery typically reduces the SEG income (you export less because more is self-consumed) but it more than compensates by reducing the imported electricity cost. Net financial benefit of adding a battery is positive.
See the Smart Export Guarantee deep dive.
Smart tariffs for solar
The standard SEG export rate (around 4p/kWh) is the floor. The headline smart tariffs do much better:
Octopus Intelligent Octopus Go
Combines low overnight import rates (7p/kWh) with reasonable export rates, ideal for EV households with solar.
Octopus Cosy
Has three daily cheap import windows that work well with solar plus a battery for households with heat pumps.
The smart tariff choice depends on your install. A pure solar-only customer with no battery typically benefits most from a flat SEG tariff like Octopus Outgoing at 15p/kWh. A solar plus battery customer benefits most from Flux. We will recommend the right tariff in your proposal.
Self-consumption savings
The biggest financial benefit of solar is not usually the export income. It is the avoided cost of electricity you would otherwise have bought from the grid.
A typical UK household uses 3,500-4,500 kWh/year. With 4 kW of solar, you might generate 3,800-4,200 kWh/year. Without a battery, around 25-35% of that is consumed in the house directly (the rest exports). With a battery, this rises to 75-85%.
| Self-consumed solar | Avoided grid cost at 28p/kWh |
|---|---|
| 1,000 kWh | £280 |
| 2,000 kWh | £560 |
| 3,000 kWh | £840 |
| 3,500 kWh | £980 |
For a 6 kW solar + 13 kWh battery install, the typical self-consumption is around 3,000-3,500 kWh/year, which means £840-£980 avoided in grid electricity costs annually. This is the dominant financial benefit.
Warmer Homes scheme for solar
Lower-income households, EPC D-G properties and certain benefit recipients may qualify for the UK Government's Warmer Homes scheme (the successor to ECO4), which can cover solar as part of a broader retrofit package alongside batteries, heat pumps and insulation.
For eligible households, the scheme can cover most or all of the install cost. Ask us during your survey and we will check your eligibility.
Solar Together and council partnerships
Some local councils across East Anglia run periodic Solar Together-style schemes, partnering with vetted installers (including us) to offer residents preferential pricing through bulk-buy arrangements. We have been a delivery installer on multiple such schemes.
The schemes are not means-tested. Eligibility is based on living in a participating council area when the scheme is running. The savings vary by scheme but typically 5-10% off comparable open-market pricing.
If a scheme is currently running in your council area, register interest via the council's official scheme website. If no scheme is currently active in your area, you can still book a free survey with us at standard pricing, which is comparable to or better than scheme pricing for most install types.
Consumer finance for solar
For the upfront cost of solar (or solar plus battery), finance through Greenscape Energy covers most household budgets:
| Loan amount | Term | APR | Monthly payment | Annual energy saving |
|---|---|---|---|---|
| £7,500 (4 kW solar) | 12 months | 0% | £625 | £400-£600 |
| £7,500 (4 kW solar) | 24 months | 0% | £313 | £400-£600 |
| £7,500 (4 kW solar) | 60 months | 7.9% | £152 | £400-£600 |
| £7,500 (4 kW solar) | 120 months | 7.9% | £91 | £400-£600 |
| £12,800 (4 kW solar + 10 kWh battery) | 12 months | 0% | £1,067 | £1,000-£1,400 |
| £12,800 (4 kW solar + 10 kWh battery) | 24 months | 0% | £533 | £1,000-£1,400 |
| £12,800 (4 kW solar + 10 kWh battery) | 60 months | 7.9% | £259 | £1,000-£1,400 |
| £12,800 (4 kW solar + 10 kWh battery) | 120 months | 7.9% | £155 | £1,000-£1,400 |
| £14,800 (5 kW solar + 13 kWh Tesla PW3) | 12 months | 0% | £1,233 | £1,200-£1,600 |
| £14,800 (5 kW solar + 13 kWh Tesla PW3) | 24 months | 0% | £617 | £1,200-£1,600 |
| £14,800 (5 kW solar + 13 kWh Tesla PW3) | 60 months | 7.9% | £299 | £1,200-£1,600 |
| £14,800 (5 kW solar + 13 kWh Tesla PW3) | 120 months | 7.9% | £179 | £1,200-£1,600 |
| £18,500 (8 kW solar + 16 kWh battery) | 12 months | 0% | £1,542 | £1,400-£2,000 |
| £18,500 (8 kW solar + 16 kWh battery) | 24 months | 0% | £771 | £1,400-£2,000 |
| £18,500 (8 kW solar + 16 kWh battery) | 60 months | 7.9% | £374 | £1,400-£2,000 |
| £18,500 (8 kW solar + 16 kWh battery) | 120 months | 7.9% | £223 | £1,400-£2,000 |
For solar plus battery, the monthly finance payment is often comparable to or less than the monthly energy saving, making the install cash-flow neutral or positive from day one.
0% APR on agreements of 1 to 2 years. Longer terms, up to 10 years, are 7.9% APR. Subject to status, credit checks apply. Greenscape Energy Limited is FCA-authorised as a credit broker (FCA registration 690130).
A worked example
Take a 4-bed Suffolk family home: 6 kW SunPower solar + 16 kWh Solis battery + Octopus Flux tariff.
The Warmer Homes scheme, if the customer is eligible, can reduce the upfront cost. Consumer finance can spread it. Whichever path, the energy bill saving compounds over the 25+ year life of the system. Lifetime saving on this profile is approximately £55,000-£70,000 in 2026 prices.
| Component | Amount |
|---|---|
| Install cost (with 0% VAT) | £9,200 |
| Annual solar generation | ~5,500 kWh |
| Annual house consumption | ~4,500 kWh |
| Self-consumed (with battery) | ~3,800 kWh |
| Export to grid | ~1,700 kWh |
| Avoided grid electricity (at 28p) | £1,064 |
| SEG export earnings (Flux peak + standard mix) | £340 |
| Annual saving | £1,404 |
| Pre-install electricity bill | £1,800 |
| Post-install net electricity cost | ~£396 |
| Payback (cash purchase) | ~6.5 years |
| Effective bill reduction | 78% |
What we handle for you
The solar funding paperwork is all in our scope:
-
DNO connection notification (required for any new solar install)
-
MCS install certification, which gates SEG eligibility
-
SEG application support to whichever supplier you choose
-
Warmer Homes scheme application if you are eligible
-
Consumer finance application through Greenscape at proposal stage
-
0% VAT registration and proper invoicing
-
Smart tariff guidance so you switch to the right tariff at the right time
You sign one agreement (the install agreement). Everything else is handled.
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