Quick answer: Yes — in 2026 you can stack 0% VAT (until 31 March 2027), the Smart Export Guarantee, ECO4/LA Flex and the £7,500 Boiler Upgrade Scheme on the same property. They cover different measures and funders, so they combine. The catch: a home battery qualifies for 0% VAT but is not Boiler Upgrade Scheme-eligible.
The four schemes — and how they overlap
Each of these works differently. One is a tax relief, one is an ongoing payment from your energy supplier, one is a council-administered grant, and one is a fixed upfront grant for heat pumps. Because they sit on different mechanisms, a single household can benefit from all four at once — provided each measure meets that scheme's own rules.
| Scheme | What it covers | Value (2026) | Key condition |
|---|---|---|---|
| 0% VAT (HMRC Notice 708/6) | Solar PV, battery storage (incl. standalone), heat pumps | 0% on supply & install until 31 March 2027 | Residential; reverts to 5% on 1 April 2027 |
| SEG (Ofgem) | Export of surplus solar electricity | ~1p–27p per kWh (indicative) | MCS certificate + smart meter |
| ECO4 / LA Flex | Solar, heat pumps, insulation | Council-administered grant | Low-income / EPC D–G; runs to 31 March 2026 |
| BUS (Boiler Upgrade Scheme) | Air & ground source heat pumps | £7,500 | Valid EPC; replacing a fossil-fuel system |
If you want the full picture before you start, our overview of solar & heat pump grants sets out who qualifies for each one.
0% VAT until 31 March 2027 — get the date right
Under HMRC VAT Notice 708/6, domestic solar PV, battery storage (including standalone batteries since 1 February 2024) and heat pumps carry 0% VAT on supply-and-install for residential properties until 31 March 2027, after which the rate reverts to 5% on 1 April 2027. Many installers wrongly quote 31 January 2027 — the legislation says 31 March, which gives you two extra months. This relief applies automatically: your installer simply doesn't add VAT, so there is nothing to claim back.
SEG — paid for what you export
The Smart Export Guarantee (Ofgem) obliges every energy supplier with 150,000+ customers to offer an export tariff. You need an MCS certificate for the install and a smart meter capable of half-hourly readings. Rates vary widely, so treat the table below as a guide, not a quote.
| Tariff | Indicative rate | Best for |
|---|---|---|
| Octopus Outgoing Fixed | ~15p/kWh flat | Simple, predictable export |
| Intelligent Octopus Flux / Outgoing Agile | up to ~27p/kWh at peak | Battery owners who export at peak |
| EDF, OVO, E.ON Next, British Gas, Scottish Power, So Energy, Good Energy | ~3p–15p/kWh | Varies — compare per supplier |
Rates indicative — verified June 2026, check with the supplier before switching. A battery lifts SEG earnings because you can hold cheap or self-generated electricity and release it when export prices peak.
ECO4 / LA Flex — the means-tested route
ECO4 and its Local Authority Flexible Eligibility (LA Flex) extension are administered by councils for low-income households and homes rated EPC D–G. They can fund solar, heat pumps and insulation. The scheme runs to 31 March 2026, so if you qualify it is worth checking with your local authority promptly. Where ECO4 covers part of a measure, 0% VAT still applies to any element you pay for yourself.
BUS — £7,500 for the heat pump, nothing for the battery
The Boiler Upgrade Scheme provides a £7,500 grant towards an air source or ground source heat pump in England and Wales. You need a valid EPC and must be replacing a fossil-fuel system (gas, oil or LPG). An MCS-certified installer applies on your behalf and deducts the £7,500 from your quote — you never handle the paperwork. £7,500 is the current figure; we won't speculate on future changes.
The hard limit to remember: batteries are not BUS-eligible. The grant funds the heat pump only. Your battery still gets 0% VAT, but no BUS money flows to it.
What stacks, what doesn't
- Stacks: 0% VAT + SEG + BUS on one property (solar, battery and heat pump together).
- Stacks: ECO4/LA Flex alongside the above if you're eligible.
- Does not: BUS toward a battery — solar, inverter and battery are outside the heat pump grant.
- Does not: a second BUS grant for the same property in the same cycle.
Worked example — a Yorkshire home in 2026
Take a typical East Yorkshire home installing a 4kW solar array, a home battery and an air source heat pump, replacing an old gas boiler:
| Measure | Indicative cost | Grant / relief | Net effect |
|---|---|---|---|
| 4kW solar PV | £6,200–£8,200 installed | 0% VAT | No VAT to pay |
| Home battery (e.g. ~5–10kWh) | ~£700–£950 per usable kWh | 0% VAT only (not BUS) | No VAT; lifts SEG & self-use |
| Air source heat pump | Quoted by installer | £7,500 BUS deducted | £7,500 off the quote |
| Surplus export | — | SEG ~15p (Octopus Fixed) | Ongoing income |
In Yorkshire a 4kW system generates roughly 3,400–3,650 kWh per year, covering 60–75% of a typical home's electricity, with a payback of around 7–11 years — faster with a battery and a strong SEG tariff. The heat pump's £7,500 BUS grant lands immediately as a deduction, while the solar and battery benefit from 0% VAT and ongoing export income. Stacked together, the household trims VAT across all three measures, takes £7,500 off the heat pump and earns from exported solar.
Choosing your battery
Two systems we install often illustrate the range. The Sigenergy SigenStor is an all-in-one inverter with modular 5–48kWh battery, an optional DC EV charger, a roughly 15-year warranty and true whole-home backup. The Solax Triple Power is an AC/hybrid battery that pairs within the Solax inverter ecosystem, carries around a 10-year warranty and offers strong value. Installed battery cost typically runs £700–£950 per usable kWh. Either way the battery attracts 0% VAT until 31 March 2027 — but never BUS funding.
Get it stacked correctly
The savings only land if each measure meets its scheme's rules and the install is MCS-certified — that single certificate unlocks both SEG and BUS. YEERS is a Hull-based, MCS-certified solar, battery, heat pump and EV installer serving Hull, East Yorkshire, North Yorkshire and Lincolnshire, backed by a 10-year workmanship warranty. We design the package so the grants and reliefs stack cleanly and handle the BUS application on your behalf. Request a quote and we'll map every grant you qualify for.
Frequently asked questions
Can you combine solar and heat pump grants in 2026?
Yes. In 2026 a single property can benefit from 0% VAT on solar, batteries and heat pumps (until 31 March 2027), the Smart Export Guarantee for exported solar, the £7,500 Boiler Upgrade Scheme for the heat pump, and — if you qualify — ECO4/LA Flex. They sit on different mechanisms and different funders, so they stack.
Does the Boiler Upgrade Scheme cover a home battery?
No. The £7,500 Boiler Upgrade Scheme funds air or ground source heat pumps only; batteries are not BUS-eligible. A home battery still qualifies for 0% VAT until 31 March 2027, but no BUS grant money goes toward it.
When does 0% VAT on solar and heat pumps end?
Under HMRC VAT Notice 708/6, 0% VAT on domestic solar PV, battery storage and heat pumps runs until 31 March 2027, then reverts to 5% on 1 April 2027. Some installers wrongly quote 31 January 2027 — the correct date is 31 March 2027.
Do I need a smart meter to claim SEG?
Yes. The Smart Export Guarantee requires an MCS certificate for your install and a smart meter capable of half-hourly readings, so your supplier can measure and pay for the electricity you export. Rates currently range from around 1p to 27p per kWh depending on the tariff.
Can I get the £7,500 Boiler Upgrade Scheme grant and still claim 0% VAT?
Yes. The £7,500 grant is deducted from your heat pump quote by an MCS-certified installer, and 0% VAT applies separately to the supply-and-install of the heat pump, solar and battery until 31 March 2027. The two do not cancel each other out.
Who qualifies for ECO4 or LA Flex alongside other grants?
ECO4 and LA Flex are council-administered for low-income households and homes rated EPC D–G, and can fund solar, heat pumps and insulation. The scheme runs to 31 March 2026. If you qualify, it can sit alongside 0% VAT, SEG and the Boiler Upgrade Scheme — check eligibility with your local authority.
Last updated June 2026 · YEERS — MCS-certified renewable installers, Hull & Yorkshire.
