In the United Kingdom, several incentives and schemes are available to encourage the adoption of energy storage systems:

1. VAT Reduction on Battery Storage Installations:

As of 1st February 2024, the UK government has reduced the Value Added Tax (VAT) on battery storage installations to 0%. This reduction applies to all homeowners, regardless of whether they have existing solar panels. The VAT cut effectively lowers the cost of battery storage systems by 20%, resulting in savings between £700 to £1,500 per installation.

Source: Get Retrofitted

2. Long Duration Electricity Storage (LDES) Investment Support Scheme:

In October 2024, the UK government launched the LDES investment support scheme to attract investment in renewable energy storage technologies. This initiative aims to develop infrastructure capable of storing renewable energy for extended periods, thereby enhancing energy security and supporting the transition to net-zero emissions.

Source: GOV.UK

3. Warm Homes Plan:

Announced in early 2025, the £6.6 billion Warm Homes Plan provides grants and low-interest loans to millions of UK homeowners for installing solar panels and battery storage systems. The scheme offers upfront grants to low-income households and affordable loans to others, repayable through reduced electricity bills. Additionally, the plan may increase incentives for selling surplus electricity back to the grid.

Source: The Times & The Sunday Times

4. Local Authority Initiatives:

Various local councils offer schemes to promote renewable energy adoption. For instance, Wiltshire Council's "Solar Together" initiative allows residents to purchase solar panels and battery storage systems at reduced rates through group purchasing. Participants have reported significant reductions in their energy bills.

The Scottish Sun

5. Energy Company Obligation (ECO) Scheme:

The ECO scheme targets lower-income households living in energy-inefficient homes. It places the responsibility on energy suppliers to fund home improvements, such as insulation, to reduce energy bills. While primarily focused on insulation, some aspects may indirectly support energy storage adoption.

Source: Duracell Energy

Assessing Eligibility and Application Process:

Eligibility criteria for these incentives vary. Homeowners should research each scheme thoroughly to determine qualification requirements. The 0% VAT rate on battery storage installations is universally applicable until 31st March 2027, offering a significant saving for all homeowners.

Source: Duracell Energy

By leveraging these incentives, UK residents can reduce the upfront costs of energy storage systems, contribute to a more sustainable energy grid, and achieve long-term savings on their energy bills.