What the Autumn Budget Actually Changed for Solar, Batteries and Heat Pumps
The Autumn Budget on 28 October 2026 changed less for solar, battery and heat pump costs than the headlines going into it suggested. Some things moved, several didn’t, and it’s worth knowing which is which before you assume a deadline has shifted.
What actually moved
The electricity VAT cut, the temporary reduction from 5% to 0% that started 1 October 2026, got extended. It was due to end 31 March 2027; the Budget pushed that to 30 June 2027. See our October price cap breakdown for what that cut is actually worth on a typical bill.
What stayed exactly where it was
Two things widely expected to move didn’t. The 0% VAT relief on installed solar panels and battery storage still ends on 31 March 2027, reverting to 5%, exactly as already planned. See our VAT relief deadline post for what that’s worth to act on now rather than wait out. And despite reports going into the Budget that Boiler Upgrade Scheme funding faced cuts, the actual per-household grant amounts, £7,500 for most heat pumps and £9,000 for homes replacing oil or LPG, are unchanged. The Budget froze future scheme funding rather than cutting what an individual household can claim today.
What’s still unresolved
The Clean Heat Market Mechanism’s proposed 2027/28 target rise wasn’t part of the Budget at all. It’s running on its own consultation timeline. See our CHMM consultation update for the detail on that.
The practical takeaway
If you were waiting on the Budget to find out whether solar, battery or heat pump grants and VAT relief were about to disappear early, the honest answer is mostly no. The one real change, the longer electricity VAT cut, helps your bill either way, solar system or not, and doesn’t move any of the install-cost deadlines.
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Frequently asked questions
Did the Autumn Budget cut solar or battery VAT relief?
No. The 0% VAT relief on installed solar and battery equipment still ends 31 March 2027 exactly as planned before the Budget. Nothing about that date changed.
Did the Budget cut the Boiler Upgrade Scheme grant?
Not the grant amount itself. £7,500 (£9,000 for oil or LPG replacement) is unchanged. The Budget froze future scheme funding rather than cutting what a household can currently claim.
What did the Autumn Budget actually change for energy bills?
It extended the electricity VAT cut from 5% to 0%, pushing the planned end date from 31 March 2027 to 30 June 2027.