A Helping Hand Towards a Solar Future

The UK Government has big plans to reach net zero emissions by 2050, and to achieve this, solar panels cannot be limited to the rooftops of high-end earners. The ECO4 scheme aims to assist low-income and vulnerable households in improving energy efficiency. Eligible homeowners can receive support for installing solar panels, which can significantly reduce electricity bills in the long-term, as well as make significant social improvements to those living with health conditions made worse by the cold. Eligibility is based on specific criteria, including income level and existing energy efficiency measures in the home, and you can complete a free eligibility check here.

gov eco 4

But I own my own wind farm! Well, you need the Smart Export Guarantee (SEG)

Making money off your solar panels just sitting on your roof sounds too good to be true, right? Well, if you have installed solar PV panels in your home or business (or own your own wind farm), you may be able to earn money through the Smart Export Guarantee (SEG). Under the SEG, home or business owners with solar panels can receive payments for surplus electricity exported back to the grid. In actual fact, energy suppliers with over 150,000 customers are mandated to offer this scheme, providing a financial incentive for generating renewable energy. Rates and terms vary by supplier, so it’s advisable to compare offers. Read more about the SEG here.

Tell me more about 0% VAT on Solar Panel Installations…

To encourage renewable energy adoption, in 2022, the UK government implemented a 0% VAT rate on the installation of solar panels for residential properties. This reduction lowers the upfront cost of solar installation, making solar power even more accessible to the average homeowner. The zero VAT approach is currently in effect and is scheduled to last until 2027, after which it will revert to 5%, which is still pretty low compared to other VAT rates! There are a few stipulations in place however: customers must pay for the installation and supplies simultaneously (i.e. you’d need to hire a company that is both selling you the panels and fitting them for you), the solar panels must be new and not second-hand, and they must be fitted by a MCS-registered installer (like us!). On another positive note, you can include other relevant goods or services along with the solar panel’s installation, once it occurs at the same time. 

My fossil fuel boiler’s on the blink! Well, upgrade it then…

The Boiler Upgrade Scheme (BUS) supports the decarbonisation of heat in buildings, moving away from traditional fossil fuel heating systems to those with a heat pump or biomass boiler. It provides upfront capital grants to support the installation of heat pumps and biomass boilers in homes and non-domestic buildings in England and Wales. 

Acting on behalf of property owners, installers can apply for: 

  • £7,500 off the cost and installation of an air source heat pump 
  • £7,500 off the cost and installation of a ground source heat pump, including water source heat pumps 
  • £5,000 off the cost and installation of a biomass boiler 

Think you might be eligible? Find out how to apply for the grant.

Air Heat Pump, saving money and energy costs

Brr…I think I need the Warm Homes Plan

One of the most recent Government initiatives, the Warm Homes Plan is expected to introduce initiatives to support solar energy adoption. The Warm Homes Plan will help people find ways to save money on energy bills and deliver warmer, cleaner to heat homes, with up to 300,000 homes to benefit from upgrades in 2025 alone! Again, there’s support for low-income households, renters and the plan even branches out to include grants for heat pumps too. And, music to our ears, but the one-metre rule that required planning permission to get a heat pump in England is now a thing of the past, removing the barrier of planning permission for many customers.

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Siri, explain Regional Electricity Pricing to me.

Unbelievably, some areas of the UK currently generate so much excess wind energy, we offset unused quantities to countries such as France, only to buy it back at a higher price from countries such as Norway, as and when we need it. Make it make sense!

Regional Electricity Pricing UK Map
Source: EDF Energy

In a regional pricing model, electricity prices would vary based on local factors such as production costs, demand levels (anything from charging your phone to powering a football stadium), and the availability of renewable energy sources. Regions abundant in renewable energy, like wind or solar, might benefit from lower prices due to reduced production costs, while areas with higher demand and less local generation could experience comparatively higher prices. 

Greg Jackson: Regional Pricing’s Top Fan.

Greg Jackson, CEO of Octopus Energy, is a prominent advocate for implementing regional pricing in the UK. He argues that this system could lead to more efficient energy use and lower costs for consumers, and made headlines just before Christmas when he said that Scotland could have the cheapest energy prices in Europe (!) if the UK made the switch to this zonal model. Rather than sending all that surplus energy to the continent, if Scotland stored and used their surplus power locally, it could be given to consumers at a much lower price, cutting bills for not only their consumers, but for those in other areas of the UK too.

Picture of Greg Jackson. Regional Pricing’s Top Fan.
Greg Jackson, Octopus CEO. Source: The Business Anecdote

In an interview with BusinessGreen, Jackson emphatically stated, “If we have locational pricing and market reform, the resulting investment signals mean we can be building the grid where we need it most to hit the 2030 target.”

He further elaborated on social media, noting, “Locational pricing will make energy cheaper in every region. In other countries, it attracts investment in energy-intensive industries.” In a prolonged period of low economic growth in the UK, this would be extremely welcome news to boost our struggling economy over the coming years. 

What are the benefits of Regional Pricing?

Advocates of this model, like Greg Jackson, believe that regional pricing can:

  • Lower Energy Bills: Consumers in regions with abundant renewable energy could see reduced bills, making use of all the green energy that would have otherwise gone to waste – this could amount to up to £900 million saved over the next decade!
  • Encourage Investment: Accurate pricing signals would attract investments in renewable energy projects and infrastructure where they are most needed, boosting local and national economies and ensure we don’t slip into a recession.
  • Promote Efficiency: Aligning prices with local supply and demand could lead to more efficient energy consumption and generation patterns. In fact, considering just wind power, we could save enough green energy to power almost half a million households each year.

Industry Debate and Concerns

Despite the potential benefits, the proposal for regional pricing has naturally sparked debate within the energy industry. Some industry groups express concerns that such changes could increase costs for heavy industries and deter investment into those regional areas that so desperately need the economic boost. Jackson addresses these concerns by suggesting that there are ways to meet the needs of these industries without imposing additional costs on households and businesses.

To bring or not to bring in regional electric pricing?

That is the million dollar (pound) question. Without a doubt, regional electricity pricing presents a compelling opportunity to enhance efficiency and reduce costs in the UK’s energy market. It would be a landmark moment in the history of electricity, breaking from decades-old practice and bringing the UK energy usage into the 21st century. While the debate continues, leaders like Greg Jackson advocate for reforms that align prices with local realities, potentially benefiting consumers and the renewable energy sector alike.

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