MCS certified installers. Over 500 homes across the UK.

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SEG, BUS and 0% VAT

Renewable Energy Funding

Funding options to help you spread the cost of your renewable energy system

Get paid for the electricity you export, claim a grant towards a heat pump and pay 0% VAT on solar panels, heat pumps and battery storage.

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Accredited, certified and approved by

  • MCS certified
  • NICEIC approved contractor
  • EPVS accredited
  • HIES Accredited Installer and Trading Standards Approved Code
  • Sunsynk master installer
  • Mitsubishi Electric business partner

Funding options

Three ways to lower the cost

Government-backed schemes that pay you for the power you export, put a grant towards a heat pump and take the VAT off your installation.

  • SEG

    Smart Export Guarantee

    Small-scale generators receive payments from electricity suppliers for the electricity they export back to the National Grid (subject to certain criteria).

    SEG details

  • BUS

    Boiler Upgrade Scheme

    A grant to cover part of the cost of replacing your fossil fuel heating (oil, gas or electric) with a heat pump or biomass boiler.

    BUS details

  • 0% VAT

    0% VAT on renewable products

    Zero-rated VAT on installing solar panels, air source heat pumps and battery storage, for all homes in the UK until 31 March 2027.

    0% VAT details

Smart Export Guarantee (SEG)

Get paid for the electricity you export

The Smart Export Guarantee is a government-backed initiative, launched in 2020. It requires some energy suppliers to pay small-scale generators, usually homes, a tariff for the energy they export back to the grid.

SEG value and payment

Your energy supplier sets the tariff, but it must always be above 0p. The amount can change, so it is worth shopping around. The current average is around 5p per kWh exported, but some suppliers, such as Octopus and E.ON, offer more attractive rates on special tariffs, which could be as much as 20p per kWh.

For further reading, see the SEG guide on ofgem.gov.uk.

SEG enquiries
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SEG eligibility

How to claim your SEG payments

The SEG is open to homes with an eligible renewable technology. Here is what you need.

  1. 01

    An eligible system

    Solar photovoltaic (solar PV), wind, micro combined heat and power (micro-CHP), hydro or anaerobic digestion (AD), installed in Great Britain.

  2. 02

    A smart meter

    The installation must meet certain criteria. For example, you’ll need a smart meter fitted if you don’t already have one.

  3. 03

    DNO registration

    The installation must be registered with your local DNO (Distribution Network Operator). We register it for you.

  4. 04

    Apply to your supplier

    Apply for the Smart Export tariff with your energy supplier, for example British Gas, Octopus or E.ON.

Boiler Upgrade Scheme (BUS)

A grant towards your heat pump

The Boiler Upgrade Scheme supports the decarbonisation of heat in buildings. It provides upfront capital grants to encourage low-carbon heating, such as heat pumps, in homes and non-domestic buildings in England and Wales. You could get a grant to cover part of the cost of replacing your fossil fuel heating (oil, gas or electric) with a heat pump or biomass boiler.

BUS eligibility

  • You must own the property
  • The heat pump must replace your existing system, not form a hybrid system
  • Your installer must be certified by the Microgeneration Certification Scheme (MCS)

Renewafuel is a fully accredited MCS installer, and we operate under and are bound by the MCS terms and conditions. The scheme launched with £450 million of government grant funding over three years, from 2022 to 2025.

See air source heat pumps
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BUS value and payment

£7,500 off an air source heat pump

Acting on behalf of property owners, Renewafuel can apply for £7,500 off the cost and installation of an air source heat pump. For further reading, see the Boiler Upgrade Scheme on ofgem.gov.uk.

BUS enquiries

0% VAT on renewable products

0% VAT on solar, heat pumps and batteries

In April 2022 the Government announced that solar panels, air source heat pumps and solar battery storage in homes would have their VAT cut to 0%. It is a time-limited measure to help families invest in products that make them less reliant on energy suppliers and today’s high gas and electricity tariffs.

Do I need to apply?

No, you don’t need to do anything. The VAT is removed automatically, so the final price you pay already excludes it and your invoice shows the VAT as 0%.

How long will it last?

0% VAT on energy-saving installations is in place until the end of March 2027. For further reading, see gov.uk.

0% VAT enquiries
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Questions

Funding questions

Quick answers on the Smart Export Guarantee, the Boiler Upgrade Scheme and 0% VAT.

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What is the Smart Export Guarantee?
A government-backed initiative launched in 2020. It requires some energy suppliers to pay small-scale generators, usually homes, a tariff for the electricity they export back to the grid.
How much does the Smart Export Guarantee pay?
Your energy supplier sets the rate, but it must always be above 0p. The current average is around 5p per kWh exported, and some suppliers, such as Octopus and E.ON, offer special tariffs of as much as 20p per kWh, so it pays to shop around.
Who can get the Boiler Upgrade Scheme grant?
Property owners in England and Wales replacing fossil fuel heating with a heat pump or biomass boiler. The heat pump must replace your existing system rather than form a hybrid, and it must be fitted by an MCS certified installer. Renewafuel is fully MCS accredited and applies for the grant on your behalf.
Can I use finance with a grant?
Yes. If your heat pump qualifies for the Boiler Upgrade Scheme, the grant comes off your quote first, so you only spread the cost of what is left. See our finance options.
Do I need to apply for 0% VAT?
No. The VAT is removed automatically, so the final price you pay already excludes it and your invoice shows the VAT as 0%.
How long will 0% VAT last?
It is a time-limited measure, in place until the end of March 2027.

Funding enquiries

Talk to us about funding

To discuss or apply for SEG or BUS funding, or to ask about 0% VAT on your installation, contact Renewafuel. To find out how much you could be saving, try our savings estimator.

  • A qualified engineer, not a salesperson
  • Exact figures for your property, not averages
  • A straight answer if your home is not suitable

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