If you have been searching for a home battery grant, you have probably noticed that the answer is not straightforward. Unlike the Boiler Upgrade Scheme (BUS) for heat pumps, there is no single UK government grant that writes you a cheque for a home battery.
But that does not mean there is no financial help available. Several schemes can reduce the cost of a battery installation, and the Smart Export Guarantee (SEG) can help it pay for itself faster.
This guide covers every form of financial support available for home battery storage in the UK in 2026, who qualifies, and how to apply.
Prices checked: July 2026.
0% VAT on Battery Storage
This is the biggest subsidy available to most homeowners. Since February 2024, the UK government has applied a 0% VAT rate on the installation of energy storage products in homes, including batteries.
If you use a VAT-registered installer, you pay 0% VAT on both the equipment and the labour. This saves you 20% compared to standard VAT — roughly £1,000 off a £5,000 installation.
| Item | With 20% VAT | With 0% VAT | Saving |
|---|---|---|---|
| 10kWh battery system | £6,000 | £5,000 | £1,000 |
| 13.5kWh battery system (Tesla Powerwall) | £9,600 | £8,000 | £1,600 |
| 5kWh battery system | £3,600 | £3,000 | £600 |
Who qualifies: All UK homeowners. You do not need to meet any income thresholds. The installer must be VAT-registered and the battery must be installed in your home.
Does it apply without solar panels? Yes. The 0% VAT rate applies to battery storage installations whether or not you install solar panels at the same time.
Energy Company Obligation (ECO4)
ECO4 is a UK government scheme that requires large energy suppliers to fund energy efficiency improvements for low-income and vulnerable households. Battery storage can sometimes be included.
Who qualifies: Homeowners or private tenants receiving certain means-tested benefits, including:
- Pension Credit
- Income Support
- Income-based Jobseeker's Allowance (JSA)
- Universal Credit (with income limits)
- Child Tax Credit (with income limits)
- Working Tax Credit (with income limits)
What it covers: ECO4 typically covers insulation, heating upgrades, and solar panels. Battery storage is not a guaranteed ECO4 measure, but it can be included as part of a wider solar + battery installation. You will need an assessment from your energy supplier or a registered ECO4 installer.
How to apply: Contact your energy supplier (British Gas, EDF, Octopus, and others) and ask about ECO4 eligibility. You can also search for an ECO4 installer near you for independent assessments.
Home Upgrade Grant (HUG)
The Home Upgrade Grant (HUG) is a government fund distributed through local authorities in England. It covers energy efficiency improvements for homes not connected to the gas grid — typically homes using electric heating, oil, or LPG.
Who qualifies:
- You own your home (or have landlord permission)
- Your household income is under £31,000 (or you receive certain benefits)
- Your home is not connected to the gas grid
- Your home has a low Energy Performance Certificate (EPC) rating — D or below
What it covers: Insulation, heat pumps, solar panels, and in some cases battery storage. Eligibility is assessed per local authority, and not all councils offer battery storage as a HUG measure. Grants can be up to £10,000.
How to apply: Search for "Home Upgrade Grant" plus your local council name. Each council runs its own application process. The grants are limited and often oversubscribed, so apply early.
Smart Export Guarantee (SEG)
The Smart Export Guarantee (SEG) is not a grant, but it reduces the effective cost of a battery by paying you for electricity you export to the grid.
If you have solar panels and a battery, you can export excess solar generation to the grid. Energy suppliers pay you a fixed rate per kWh exported.
| Supplier | SEG rate (July 2026) |
|---|---|
| Octopus Energy (Outgoing Flux) | 15p per kWh |
| So Energy | 7.5p per kWh |
| EDF | 6p per kWh |
| Eon Next | 5.5p per kWh |
| Scottish Power | 5p per kWh |
Battery-only homes: If you do not have solar panels, SEG does not apply. You cannot export grid-charged electricity under SEG rules.
Typical annual SEG income: A 4 kW solar system with a battery can earn roughly £150 to £300 per year through SEG at current rates.
What Is Not Available
It is important to know what does not exist, so you do not waste time looking for it.
- No direct battery grant. There is no scheme that gives you cash upfront specifically for a home battery (unlike the Boiler Upgrade Scheme for heat pumps).
- No Feed-in Tariff. The old FIT scheme closed to new applicants in 2019. SEG replaced it and pays less.
- No local authority battery grants (mostly). While some councils offer solar grants, very few offer standalone battery grants. Check with your local council, but do not expect it.
- No tax credits. Battery storage installations do not qualify for tax relief, unlike some business energy investments.
How to Check What You Qualify For
- Check your VAT status. You automatically get 0% VAT on any battery installation from a VAT-registered installer. This applies to everyone.
- Check your benefits. If you receive means-tested benefits, ask your energy supplier about ECO4. This is your best chance of getting significant financial support.
- Check your heating type. If you are off the gas grid, check with your local council for HUG funding. Battery storage is sometimes included.
- Switch to a time-of-use tariff. Not a grant, but switching to Octopus Flux or Intelligent Go can significantly reduce your payback period.
- Compare SEG rates. If you have solar panels, switch to the highest SEG rate supplier to maximise your export income.
Frequently asked questions
There is no direct grant that pays for a home battery specifically. The main financial support is 0% VAT, which automatically reduces the cost by 20%. ECO4 and HUG may cover battery storage as part of wider energy efficiency improvements for eligible households.
There is no "free battery" scheme. ECO4 can sometimes fully fund solar and battery installations for low-income households. If you do not qualify for ECO4, you will need to pay for the battery yourself (with 0% VAT).
No. The BUS covers air source heat pumps, ground source heat pumps, and biomass boilers. It does not cover battery storage. However, installing a heat pump and a battery together can make sense, and some installers offer package deals.
The 0% VAT rate for energy storage installations was initially set to run until 2027. The government extended it as part of the 2024 budget, but no confirmed end date has been set. For now, it is in place. We will update this guide if the rules change.
Right size first. Quotes second.
Usage in, recommended capacity out. Then, if you want them, up to three quotes from vetted installers.