Budget 2026 and Solar

How does the 2026 budget affect solar?

March 2026 Budget — impact on solar panel owners (to be updated after budget announcement): KEY AREAS TO WATCH: (1) 0% VAT STATUS: Will it be extended beyond March 2027? The budget may confirm an extension or announce the end date. Impact: £350-£1,600 per installation. (2) ECO4 FUNDING: Will the scheme be extended and expanded? ECO4 provides free solar for low-income households. (3) BUS GRANT: Will the £7,500 heat pump grant continue? Directly affects solar + heat pump combined installations. (4) ELECTRICITY PRICING: Any changes to the Ofgem price cap mechanism? Higher cap = higher solar savings. (5) BUILDING REGULATIONS: Any acceleration of Future Homes Standard requirements? More new-build solar = larger market. PRE-BUDGET ANALYSIS: Current 0% VAT expires March 2027. Industry lobbying for permanent extension. CCC recommends permanent 0% as part of net zero pathway. Treasury position: unknown — revenue impact of extension is ~£200M/yr. POST-BUDGET: This page will be updated within hours of the budget announcement with confirmed changes and their impact on solar economics. Sources: HM Treasury budget documents (gov.uk), HMRC, Ofgem, CCC.