“Self-generating renewable energy via solar PV is widely considered a simple and cost-effective way to reduce reliance on the grid, decentralise supply, reduce utility bills and protect consumers against energy market volatility. As a result, the adoption of domestic solar has continued to accelerate at breakneck speed, undoubtedly helped by the government’s slashing of VAT for solar panels back in April 2022.
“However, while the prospect of minimising energy bills makes self-generated green energy an attractive option, the disadvantage of any microgeneration tech is that its output and consumption are often unpredictable. For one, optimum generation relies on certain weather conditions, and peak generation periods are typically during the day when most users are away from the home.
Self-generated domestic power starts at 45%
“As a result, the average consumption rate for self-generated domestic power stands at just 45% in the UK, with some users only able to reduce their reliance on mains energy by less than 25%. Rather than making full use of self-generated solar energy in the home, electricity is often exported to the grid at times of high generation and low use and then typically bought back (at a higher price) when it’s needed most.
“At myenergi, we believe that eco-smart tech is the most effective solution to bridge the self-consumption gap. After all, there are a number of products on the marketplace – including our integrated ecosystem – that enable homeowners to harness up to 100% of self-generated energy.
“The introduction of a zero-rated tax on ESMs essentially lowers the barrier to entry for eco-smart solutions, providing an even easier, more cost-effective and more accessible way to invest in technologies that maximise self-consumption, improve energy efficiency and enable further long-term reductions in utility bills.
“As a result, it’s undoubtedly a major step forward for both consumers and the industry. As well as opening up widespread financial benefits, it demonstrates the government’s commitment to ensuring that support remains firmly in line with a rapidly evolving green energy landscape.
Incentivising decarbonisation solutions
“When it comes to myenergi tech, our eddi power diverter and zappi solar EV charger are now in scope for VAT relief when fitted to an ESM, while our libbi home battery is classified as zero-rated both as a standalone technology and when connected to (or installed alongside) renewable energy generation solutions such as solar, wind or hydro.
“Households can, therefore save thousands of pounds on purchase and installation prices while simultaneously reducing their carbon footprint, streamlining utility bills and taking complete control of their energy use. This is a major move and one that should be wholeheartedly commended, not only for its up-front financial benefit but for its wider implications on renewable energy generation and consumption as a whole.
“The government should always seek to incentivise decarbonisation solutions, ideally delivered through mechanisms like tax relief and subsidies. In October last year, for example, the government upped the maximum grant available towards the installation of heat pumps from £5,000 to £7,500.
“Before the update, we had already witnessed a marked difference in home heat pump adoption – in 2023, heat pump installations grew by nearly a fifth (with over 200,000 heat pumps now installed across the country) – and this number is only expected to continue rising with the availability of larger government grants.
“Looking ahead, we’re expecting VAT relief legislation to be further updated to include a wider selection of ESMs as we continue to see a strong positive link between home clean energy adoption and government incentivisation. Additional tax benefits and clean tech subsidies should and will be introduced to further drive down the initial capital investment required to install eco-smart, green technology in the home and do even more to help consumers save money.”
For more information about myenergi, or the company’s eco-smart range of home energy tech, visit www.myenergi.com. To read the government’s consultation summary, visit Summary of responses – GOV.UK (www.gov.uk).