Quick answer: Yes — in 2026 you can stack 0% VAT (until 31 March 2027), the Smart Export Guarantee 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 schemes — and how they overlap
Each of these works differently. One is a tax relief, one is an ongoing payment from your energy supplier, and one is a fixed upfront grant for heat pumps. Because they sit on different mechanisms, a single household can benefit from all of them 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 |
| 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.
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).
- 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 12p (Octopus Outgoing 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, and the £7,500 Boiler Upgrade Scheme for the heat pump. 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.
Last updated June 2026 · YEERS — MCS-certified renewable installers, Hull & Yorkshire.
