Domestic funding — VAT, export income and finance
If you are a homeowner — or a landlord funding a system on a residential let — your funding toolkit in 2026 is built around three things. First, 0% VAT on the install until 31 March 2027, which is automatic and needs no application. Second, the Smart Export Guarantee, which pays you for surplus power and improves the long-run economics. Third, finance or a PPA, which removes or spreads the upfront cost.
What you generally will not have access to in 2026 is a mainstream grant that simply pays for the panels. ECO4 provided that for low-income households until it closed on 31 March 2026; for most homeowners now, "funded" means the combination above rather than a giveaway. Means-tested help may return through the Warm Homes Plan, and we will flag it honestly when it is live. Tenants in private rentals usually need the landlord to fund the system, though you benefit from the bill savings.
A practical domestic plan: take the 0% VAT, choose a supplier with a strong SEG export rate, and — if you do not want to pay cash — compare finance against a PPA on total cost, not just the monthly figure. If you are also considering heat, fold the Boiler Upgrade Scheme into the same project.
Business funding — capital allowances, PPAs and asset finance
Commercial solar is a different game. The 0% VAT relief is a domestic measure, so most businesses do not get it — but they have something households do not: capital allowances. Under the Annual Investment Allowance, a business can write off the full cost of a qualifying solar installation against taxable profits in the year of purchase, up to the AIA limit; larger or special-rate spend can attract the 50% First-Year Allowance. For a profitable company this is often the single largest piece of the funding picture, cutting the effective cost by the value of the tax relief.
On top of that, businesses can fund the upfront cost through asset finance or a commercial PPA, where a third party installs and owns the system and sells you the power. Structured well, a commercial system can be cash-flow positive from year one: the energy saving plus tax relief outweighs the finance cost. The catch is that allowances depend entirely on your tax position, so this is a conversation to have with your accountant alongside your installer.
Businesses also have the option of stacking solar with related measures — battery storage for peak-shaving, EV charging, or heat — each with its own funding logic. To see how the numbers land for your premises, start with the commercial solar savings calculator, then run our eligibility check so we can match you to a commercial-grade installer.
Which one are you?
The dividing line is the property, not the person. Solar on your home is domestic funding even if you run a business; solar on your commercial premises is business funding even if you are a sole trader. If you own both, the two can be planned together but funded separately. Tell us which property you are looking at and we will point you at the right routes.