Whether it’s a more affordable mortgage or government incentives, there are some incredible financing options for solar panels that make them more affordable than ever in the UK. So why doesn’t everyone install them?
Why doesn’t everyone install them?
The main reason people cite for not installing solar panels on their home or business is the initial cost, which they will need to pay off over the coming years. However, many people are unaware of the numerous offers available for those looking to go green. We’re here to help you start your renewable journey.
Other common myths about solar panels include concerns about cloudy weather, doubts about whether they are recyclable, and misconceptions about the complexity of the installation process. Let’s explore some ways you can purchase solar panels at a much lower cost.
Other common myths about solar panels include concerns about cloudy weather, doubts about whether they are recyclable, and misconceptions about the complexity of the installation process. Let’s explore some ways you can purchase solar panels at a much lower cost.
Green Mortgages
A green mortgage is designed to increase the appeal of owning a green property. This green property could include solar panels, renewable heating solutions, and various other eco-friendly features. Alongside lower interest rates or cost reductions, you’ll save money on energy bills and have the ability to sell excess energy back to the grid. The UK is making a significant push toward a net-zero society, and these types of offers were almost non-existent 10 years ago.
What do you need to do to qualify?
The first option is purchasing a home that is energy efficient. The property must have an EPC (Energy Performance Certificate) rating of A or B, and you’ll then be eligible for cashback on the property or a better interest rate on your mortgage.
The second option is installing green improvements in your home, such as solar panels or renewable heating solutions. Maisum Renewable Energy offers both of these services. Based in the West Midlands, we have over 25 years of experience and are here to help you become more energy efficient, reducing your bills in the process.
The second option is installing green improvements in your home, such as solar panels or renewable heating solutions. Maisum Renewable Energy offers both of these services. Based in the West Midlands, we have over 25 years of experience and are here to help you become more energy efficient, reducing your bills in the process.
Which lenders offer green mortgages?
What is Virgin Money’s Retrofit Boost?
Only last month, Virgin Money launched a huge offer called the Retrofit Boost mortgage that offers customers up to £15,000 cashback to make their home more energy efficient. This is not only for residential customers but also buy-to-let. A five-year fixed mortgage can secure up to £3,000, seven-year comes with £10,000 and ten-year is £15,000.
All Retrofit Boost mortgages come with a £995 fee with a minimum loan size of £150,000 and maximum of £500,000.
Other types of green mortgages?
Nationwide offers £500 cashback on properties with an EPC rating of A, or £250 on B-rated properties. You can borrow between £5,000 and £15,000 interest-free on a two-year or five-year fixed-rate basis to carry out home improvements.
Barclays offers better interest rates on properties with an EPC rating of A or B, as well as up to £2,000 for existing mortgage holders wanting to carry out green improvements.
There are various other green mortgages available—check them out from the companies listed above.
Barclays offers better interest rates on properties with an EPC rating of A or B, as well as up to £2,000 for existing mortgage holders wanting to carry out green improvements.
There are various other green mortgages available—check them out from the companies listed above.
Smart Export Guarantee (SEG)
Over five years ago, the UK joined numerous other countries in committing to reach net-zero carbon emissions by 2050. With nearly 25 years to go, the government is offering various grants for cleaner energy, including the SEG scheme introduced in 2020. The SEG offers homes export tariffs for a variety of small-scale energy generation technologies when they return surplus energy created back to the National Grid.
SEG Covers:
Solar PV Systems
Solar energy is the most popular way to create low-carbon energy in homes. As of June 2024, 1.39 million UK homes have solar panels, a nearly 49-fold increase from just 28,211 homes in 2010. With growing awareness of solar panel efficiency and the significant reduction in energy costs, this number is expected to continue rising throughout the year.
There are no specific requirements regarding the type of Solar PV system that qualifies for this scheme; however, it must generate less than 5MW of electricity and be MCS certified. While the benefits of solar battery storage include storing excess energy for use at night and SEG is an export tariff, solar storage can still be covered in some instances.
There are no specific requirements regarding the type of Solar PV system that qualifies for this scheme; however, it must generate less than 5MW of electricity and be MCS certified. While the benefits of solar battery storage include storing excess energy for use at night and SEG is an export tariff, solar storage can still be covered in some instances.
Home Upgrade Grants (HUG)
The HUG scheme aims to improve the energy efficiency of homes. This isn’t limited to just solar panels but is also available for external/internal wall insulation, cavity wall insulation, air source heat pumps, and hot water cylinder insulation and thermostats. It’s set to deliver up to £700 million between 2023 and 2025 to further support the goal of achieving net-zero by 2050.
- Save on energy bills.
- Reduce your carbon footprint.
- Minimal maintenance.
- Long-term benefits of investing.
- Never-ending source of energy.
- Energy during power outages with battery storage.
“West Midlands Combined Authority has partnered with Act on Energy and Marches Energy Agency to distribute HUGs across the region.” – Click here to be taken to the WMCA website and apply for the grant.
To qualify, you must have a household income of £36,000 or less or live in a property within one of the Central Government’s eligible postcodes. Other requirements include living in a property where gas isn’t the main form of heating, paying council tax to Birmingham City, Sandwell, Dudley, or Rugby Borough Council, and living in a property with an EPC rating of D, E, F, or G.
To qualify, you must have a household income of £36,000 or less or live in a property within one of the Central Government’s eligible postcodes. Other requirements include living in a property where gas isn’t the main form of heating, paying council tax to Birmingham City, Sandwell, Dudley, or Rugby Borough Council, and living in a property with an EPC rating of D, E, F, or G.
Other Financial Options
