Solar in 2026: VAT, export payments and planning, explained
Alongside the panels themselves, there are a few schemes and rules worth knowing about before you install solar. None of them are complicated, and together they make the process smoother than many people expect. This guide walks through each one calmly.
VAT on home solar
Under current rules, the installation of solar panels in homes attracts a 0% rate of VAT, which means the price you're quoted is the price you pay, without an extra percentage added on top. This applies to residential installations and is one of the things that makes the figures you see more straightforward to compare.
Worth remembering: VAT rates can change at a Budget, so it's sensible to confirm the rate that applies at the time of your installation. We'll always set out the tax treatment clearly in your written quote.
Getting paid for surplus: the Smart Export Guarantee
The Smart Export Guarantee, or SEG, is the scheme that pays you for electricity your panels generate but you don't use, which flows back into the grid. Larger energy suppliers are required to offer at least one export tariff, and there's a range to choose from.
Export rates vary between suppliers and tariffs. At the time of writing they run from around 15p to 25p per unit on the higher-paying deals, with some fixed-rate and some variable options. You don't have to export to the same company that supplies your import, which is worth knowing when comparing.
- Choosing a tariff: consider whether you prefer a fixed rate for certainty or a variable one that can move with the market.
- Getting registered: after your system is commissioned, you apply to an export supplier with your meter and installation details. We handle this for our customers.
- Getting paid: payments are based on the exported units recorded by your smart meter, typically settled monthly or quarterly.
Do you need planning permission?
For most homes in England, roof-mounted solar panels fall under permitted development, meaning they don't need a separate planning application. There are sensible limits around how far panels can project from the roof, and the rules differ a little for flats and for ground-mounted systems.
There are two main situations where extra care is needed. Listed buildings usually require consent before any alteration. And homes in conservation areas or other designated land may have additional considerations. In both cases we identify the situation early and help prepare what's needed.
The takeaway: the paperwork side of solar is manageable and, for the most part, handled on your behalf. VAT is currently 0%, export payments are available through the SEG, and most roofs don't need a planning application.
If you'd like us to check how all this applies to your specific home, we're happy to talk it through with no obligation. We'll confirm everything in writing before any work is booked.