Grants, VAT and funding

Home battery grants, VAT and loans: what actually exists in 2026

Search for home battery grants and you will find plenty of pages promising one. This is what the schemes' own rules say, nation by nation, including the help that does not exist.

Prices and rules checked 27 September 2026

Quick answer

There is no national grant for home batteries in any UK nation. The help that does exist: 0% VAT on installed batteries until 31 March 2027; Warm Homes Loan Scheme loans of up to £15,000 for a battery, from lenders the government pays to lower the rate; and, for eligible low-income homes in England, a council Warm Homes: Local Grant that can include a battery alongside solar panels.

Expect to pay for a home battery yourself. The only scheme that can fund one, the Warm Homes: Local Grant, is England-only, means-tested, for homes rated EPC D to G, and pays for a battery only alongside solar panels. Its £16,600 is an average per council project, not a sum anyone is owed. Home Energy Scotland stopped offering batteries to new applicants in 2024, Wales's Nest scheme lists solar panels but not batteries, and Northern Ireland has no home battery grant. Most homes pay cash or borrow, and this page shows what each costs.

What applies everywhere

HelpWho can use itWhat it is worth
0% VAT on installation, until 31 March 2027UK homes, when a VAT-registered installer supplies and fits the batterySaves the 5% that applies from 1 April 2027; supply-only purchases pay the standard rate
Warm Homes Loan SchemeAny UK home; no income test; MCS-certified product and installerLoans from approved lenders, up to £15,000 for an electrical storage battery, standalone or with solar. The Government pays the lender up to 20% of the loan, which must be passed on as a lower interest rate. Lenders have been listed on GOV.UK since the consumer launch on 27 October 2026 (DESNZ factsheet); some loans are interest-free, not all, and the aim is rates up to 5 percentage points below ordinary loans
Export paymentsHomes with eligible generation such as MCS-certified solarA price for exported electricity; not guaranteed for battery exports that could have come from the grid
Sources: HMRC VAT Notice 708/6; DESNZ Warm Homes Plan and Warm Homes Loan Scheme; Ofgem SEG guidance.

The loan scheme is the most significant change of 2026 for buyers: it spreads the cost without an income threshold, which none of the grants do. Terms come from the approved lenders, so compare the rate and the total repayable, and put the monthly cost next to the modelled saving from the calculator.

If a grant doesn't fit (it won't for most homes)

For the large majority of households none of the schemes above will pay for a battery. These are the realistic ways people fund one, with what each involves. This is information about how each route works; this site does not lend, arrange loans or pass anyone to a lender.

RouteWhat to knowWhere to read more
Pay from savings and check the paybackOctopus's published battery-only installation prices start at £5,336 for a 10 kWh battery (read 3 November 2026). The saving depends far more on your tariff and usage than on the brand.what a home battery costs by size; work out the payback on your own usage
A Warm Homes Loan Scheme loanOpen to any domestic property in the UK, with a battery cap of £15,000. It is a loan, not a grant: each lender runs its own credit and affordability checks, and some loans are interest-free but not all. Compare the rate and the total repayable.GOV.UK: how the Warm Homes Loan Scheme works
Choose the tariff before the batteryOn Octopus Flux the gap between the 4pm to 7pm peak and the 2am to 5am cheap rate was between about 20p and 22p a kWh in every one of the 14 GB regions on 3 November 2026. That gap is what a battery earns on.which tariff makes a battery pay
A battery for a business, farm or charity buildingThe 0% VAT rate is for homes and buildings used solely for a relevant charitable purpose. A business pays 20% VAT on a battery, which it can usually reclaim if it is VAT-registered, and business funding works differently from household borrowing.Commercial Solar Finance explains how businesses fund battery storage
Sources: Octopus Energy, battery-only installation (read 3 November 2026); DESNZ Warm Homes Loan Scheme rules s.3.7 and 4.13 to 4.19, and factsheet of 27 October 2026; Octopus Energy API, Flux rates for 3 November 2026; HMRC VAT Notice 708/6.

England

Warm Homes: Local Grant (WH:LG). Councils deliver it to eligible low-income households from April 2025 to March 2028, and it is fully funded for those who qualify. Batteries were added as a measure in June 2025, paused in November 2025 because no MCS product standard was in place, and allowed again from 2 February 2026. The government's guidance is explicit that a battery can only be installed where it complements existing or new solar panels. Ask your council whether its scheme is open and what it includes.

ECO4. A battery can be installed during an ECO4 retrofit, but Ofgem's guidance says it will not contribute to any ECO score, so it is not a funded measure in practice. ECO4 ends on 31 December 2026.

Boiler Upgrade Scheme. The new £2,500 grants in the Warm Homes Plan are for air-to-air heat pumps and heat batteries (which store heat, not electricity). They are not a grant for home electricity batteries, whatever some installer pages say.

Who can get a battery through the Warm Homes: Local Grant

The Warm Homes: Local Grant is the one scheme that can pay for a home battery, so it is worth knowing exactly who it is for. It applies only in England, only to eligible low-income homes, and only when the battery is fitted with solar panels. These are the tests in DESNZ's policy guidance, updated on 2 July 2026, which every council works to. The headline £16,600 is an average per council project, not an amount any household is owed; the cost cap explained sets out the detail. The tests:

TestWhat the guidance says
The homeIn England, privately owned (owner-occupied or privately rented), with an EPC rating of D, E, F or G.
Income, route 1: your postcodeThe home is in one of the most income-deprived areas of England (income deciles 1 and 2 of the Indices of Multiple Deprivation). No income check is needed.
Income, route 2: benefitsAnyone in the household, other than lodgers or adults in full-time education, receives Housing Benefit, income-based Jobseeker's Allowance, income-related Employment and Support Allowance, Income Support, Pension Credit or Universal Credit. A home rated EPC E to G can also qualify by meeting two of the ECO Flex route 2 proxies, such as eligibility for council tax reduction or free school meals.
Income, route 3: household incomeGross annual household income of £36,000 or less, counting every adult except those in full-time education, or income below the "after housing costs" threshold for the household's size, which can admit some households above £36,000. The figure is kept under review.
The batteryOnly alongside new or existing solar panels, fitted by an MCS-certified installer to the MCS battery standard (MIS 3012) and in line with PAS 63100 and PAS 2035, and only where it will cut the household's bills. The guidance strongly recommends a working smart meter and a check for a cheaper time-of-use tariff.
What it costs youNothing for an owner-occupier. A private landlord's first property is fully funded and later ones need a 50% contribution from the landlord. Tenants are not asked to pay.
What the grant can coverCouncils work to an average cost cap of £16,600 per home for energy-performance measures, a pot that includes solar panels, insulation, smart controls and batteries, plus a separate £16,600 average for low carbon heating such as heat pumps. It is an average across a council's project, not a sum each household is entitled to.
How to applyStart on GOV.UK. The council for your home usually contacts you within 10 working days and decides, with its assessor, which measures the home gets.
Sources: DESNZ, Warm Homes: Local Grant policy guidance for local authorities (updated 2 July 2026), sections 4, 6 and 7; GOV.UK, Apply for the Warm Homes: Local Grant (read 7 October 2026).

A battery on its own is not funded. If your home has no solar panels and the council's assessment does not recommend them, the grant will not pay for a battery. Ask the council whether its current programme includes solar and batteries. Anything you pay for yourself still gets 0% VAT on installation until 31 March 2027.

Scotland

Home Energy Scotland stopped funding solar PV and battery storage for new applications in 2024; the Scottish Government's record of the decision gives 15 May 2024 as the date the change was approved. Its current funding table has no battery row. It still funds heat pumps for homeowners, with a £7,500 grant plus an optional interest-free loan of up to £7,500, and offers hybrid PV-T panels and solar thermal by £5,000 loan only. Warmer Homes Scotland, the fuel-poverty scheme delivered by Warmworks, does not name batteries. The Warm Homes Loan Scheme covers Scottish homes, and GOV.UK says it can sit alongside a Home Energy Scotland grant, but not for the same item. The Scotland page covers the regional tariff and network detail.

Wales

The Welsh Government's Nest Warm Homes Programme provides free measures for owner-occupiers and private renters on means-tested benefits or a low income, in a home rated EPC 54 (band E) or below, or 68 (band D) or below where someone has an eligible health condition. It names boilers, heat pumps, insulation and solar panels. Batteries are not listed. The Warm Homes Loan Scheme covers Welsh homes. See the Wales page for the two network areas that cover Wales.

Northern Ireland

The Housing Executive's Affordable Warmth Scheme covers insulation and gas or oil heating, not heat pumps, solar or batteries. The Housing Executive's Priority PV scheme, in the NISEP 2026/27 list, gives Housing Executive tenants a 20% grant towards solar panels, a hybrid inverter and a battery. NISEP's fully funded domestic schemes are for owner-occupiers with household income under £28,000 (single) or £35,000 (couple or family); the list does not say batteries are included. The Department for Communities consulted on a successor to Affordable Warmth, the Warm Healthy Homes Fund, until 19 August 2026, and its consultation document proposes offering solar PV and battery storage subject to a home assessment. It is a proposal with no confirmed launch date, not a scheme anyone can use yet. The Warm Homes Loan Scheme covers Northern Ireland homes. Northern Ireland is outside the Smart Export Guarantee; Power NI pays 11.88p a kWh for exported electricity from 1 October 2026 to 30 September 2027. The guide to home batteries in Northern Ireland covers the connection rules and tariffs.

Borrowing for a battery: the Warm Homes Loan Scheme and ordinary finance

For the many homes that do not qualify for the grant, the Warm Homes Loan Scheme is the other route the government supports, by paying lenders to lower their rates. DESNZ's scheme rules (September 2026) set out what it is, and what it is not:

  • A lender's loan, not a grant. Lenders that DESNZ has approved, and the Financial Conduct Authority regulates, make personal unsecured or secured loans and do their own affordability and credit checks. The scheme sets no income threshold, and it covers any home in the UK.
  • Up to £15,000 for a battery, on its own or with solar panels. Solar panels have the same £15,000 cap; an air-to-water heat pump has £20,000 before the Boiler Upgrade Scheme grant is deducted.
  • The Government pays for a lower rate. It gives lenders a grant of up to 20% of each loan, for loans of three years or longer, and the lender must pass it on by lowering the nominal interest rate.
  • MCS-certified product and installer. The battery must be installed by an MCS-certified installer to the MCS standard, and lenders verify the certification.
  • Timing. DESNZ's factsheet of 27 October 2026 marks the consumer launch, with the first lenders listed on GOV.UK; the rules describe a second lender window in late 2026 for onboarding in early 2027. Lenders may not use the scheme's branding until DESNZ has approved them, so ask any lender to confirm it is an approved scheme lender before you rely on a "Warm Homes" rate.

Installers and suppliers also offer their own finance, and the total repayable is what to compare. E.ON Next's published example for its £3,995 Sunsynk Elite battery is a £998.75 deposit and 120 monthly payments of £35.77 at 7.9% APR representative, which comes to £5,291.15 in total, £1,296.15 more than the cash price. A rate that the scheme has reduced should show up in exactly that figure, so ask for the total repayable on the same battery with and without the scheme, and put the monthly cost next to the modelled saving from the calculator. For the price of the system itself, see the solar panels and battery cost guide.

Claims to be wary of

  • Cold calls about batteries. In a Which? survey of 2,039 solar panel owners in April 2024, more than a third had been cold called about their panels in the previous five years, and being sold a battery storage system was one of the frequent uninvited offers. A council grant starts from your own application on GOV.UK, not from a call.
  • A fee to "release" a grant. Under the Warm Homes: Local Grant an owner-occupier does not contribute to the cost of the work, and a loan comes from a regulated lender, so a request to pay an upfront fee for either is a warning sign.
  • "Free battery" offers usually mean the battery is bundled into finance or a tariff contract. Read the total repayable.
  • "£2,500 battery grant" refers to heat batteries and air-to-air heat pumps, not electricity storage.
  • "Grant ends soon" deadlines: the one real date is the VAT change on 1 April 2027, and it moves the rate from 0% to 5%.
  • "Government-approved battery": MCS certifies installers and installations under MIS 3012, not battery products. Check the installer instead.

What to do next

Price the battery as if no grant exists, because for most homes none does, and use the loan scheme or your own savings to compare offers on the same basis. The cost guide has the official median prices, and if you want prices for your own home, ask for home battery storage quotes (we reply by email).

Battery funding questions

Is there a government grant for home batteries?

Not as a standalone national grant. The main help is 0% VAT on installed home batteries until 31 March 2027 and lower-interest loans through the Warm Homes Loan Scheme. Low-income households in England may get a battery through their council's Warm Homes: Local Grant, but only alongside solar panels.

Am I eligible for a home battery grant?

Only through the Warm Homes: Local Grant, which covers privately owned homes in England with an EPC rating of D to G where the household meets one of three income routes: a postcode in the most income-deprived areas, a qualifying benefit, or gross household income of £36,000 or less. A battery is funded only alongside solar panels. No other UK scheme pays for a home battery.

How much is the Warm Homes: Local Grant worth?

DESNZ's guidance sets an average cost cap of £16,600 per home for energy-performance measures such as solar panels, insulation and batteries, plus a separate £16,600 average for low carbon heating. It is an average across a council's whole programme, not a sum each household can claim, and an owner-occupier pays nothing towards the work.

How much can I borrow for a battery under the Warm Homes Loan Scheme?

Up to £15,000 for an electrical storage battery, on its own or with solar panels. The Government pays the lender up to 20% of the loan for terms of three years or longer, and the lender must pass that on as a lower interest rate. The loan comes from a lender DESNZ has approved, which makes its own affordability and credit checks.

Can a landlord get a grant for a battery?

A private landlord can have one property fully funded under the Warm Homes: Local Grant and must pay 50% of the cost of any later ones. The home must still be rated EPC D to G, the household living there must meet the income test, and the battery must go in with solar panels. A landlord can also borrow through the Warm Homes Loan Scheme.

Is the £2,500 battery grant real?

Not for home batteries that store electricity. The new £2,500 grants announced in the Warm Homes Plan are for air-to-air heat pumps and heat batteries that store heat for central heating. Pages that describe it as a grant for electrical home batteries are wrong.

Can I get a battery through ECO4?

Ofgem's ECO4 guidance allows a battery to be installed during an ECO4 retrofit, but it earns no ECO score, so suppliers have no scheme incentive to fund one. ECO4 ends on 31 December 2026.

Does Home Energy Scotland fund batteries?

No. Home Energy Scotland stopped funding solar PV and battery storage for new applications in 2024 (the change was approved on 15 May 2024), and its current funding table does not include batteries. Only hybrid PV-T panels and solar thermal remain, as £5,000 loans, for homeowners.

Is there a home battery grant in Northern Ireland?

No standalone one. The Housing Executive's Priority PV scheme gives its own tenants a 20% grant towards solar panels, a hybrid inverter and a battery. NISEP's fully funded domestic schemes are for owner-occupiers with household income under £28,000 (single) or £35,000 (couple or family), and the scheme list does not say batteries are included. The Warm Healthy Homes Fund has been consulted on but is not open.

When does 0% VAT on batteries end?

On 31 March 2027. From 1 April 2027 installed batteries in homes move to the reduced 5% rate, according to HMRC VAT Notice 708/6. It is a real date, but it is not a reason to rush a decision: 5% on a £6,000 installation is £300.

Can I sell battery electricity through the Smart Export Guarantee?

The SEG pays for exported electricity from eligible generation such as MCS-certified solar. Ofgem says suppliers are not obliged to pay SEG rates for battery exports that could have been charged from the grid, so grid-charged battery export depends on the tariff you choose, such as Octopus Flux.

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