Solar Panel Grants UK 2026: What Financial Support Is Available?

Since April 2022, residential solar panel installations in the UK have been zero-rated for VAT. This was originally set to run until 2027 and applies to:

• Solar panels
• Battery storage systems (when installed alongside or after solar panels)
• All associated installation labour and materials

What this saves you: On a £7,000 solar installation, you save £350 compared to the old 5% reduced VAT rate, and £1,400 compared to the standard 20% rate. This reduction is applied automatically by your installer — you do not need to claim it.

Eligibility: The property must be a residential dwelling. Commercial properties do not qualify. There is no means test or income requirement.

The Smart Export Guarantee requires energy suppliers with 150,000+ customers to offer a tariff for surplus electricity you export to the grid. This effectively pays you for solar energy you do not use yourself.

How much you earn: SEG rates vary between suppliers, typically ranging from 4p to 15p per kWh. A 4kW system exporting around 1,700 kWh per year earns roughly £75–£255 depending on your chosen tariff. Some suppliers offer "agile" or time-of-use export rates that can pay more during peak demand periods.

Requirements:

• Your solar panels must be installed by an MCS-certified installer
• You need a smart meter (or one that records export data)
• System capacity must be 5MW or less (all residential systems qualify)
• You can choose any participating supplier — you do not have to be their electricity customer

How to apply: Contact your preferred energy supplier directly after installation. You will need your MCS certificate and smart meter details. Most suppliers process applications within 2–4 weeks.

The Energy Company Obligation (ECO4) scheme runs from 2022 to 2026 and requires large energy suppliers to fund energy efficiency improvements for low-income and vulnerable households. Solar panels are one of the eligible measures.

Eligibility criteria:

• You live in a property with an EPC rating of D, E, F, or G
• You (or someone in your household) receive qualifying benefits such as Universal Credit, Pension Credit, Child Tax Credit, or Income Support
• Your property is privately owned or privately rented (with landlord consent)

What you get: If eligible, the full cost of solar panel installation is typically covered, meaning you pay nothing. The scheme may also cover battery storage and other energy efficiency measures (insulation, heating upgrades) at the same time.

How to apply: Contact your energy supplier directly or use the government's Simple Energy Advice service. Your supplier will arrange an assessment of your property. Wait times vary, and the scheme is first-come, first-served within supplier obligations.

Some local authorities in England, Scotland, and Wales offer their own solar panel support schemes. These vary considerably by area and may include:

• Home Energy Scotland: Interest-free loans of up to £7,500 for solar panels, available to homeowners in Scotland
• Nest scheme (Wales): Free home energy improvements including solar panels for eligible households in Wales
• Local authority solar group-buy schemes: Some councils negotiate bulk discounts with approved installers, passing savings to residents. Check your council's website for current programmes.
• Community energy schemes: Some areas offer community solar projects where residents can invest in or benefit from shared solar installations

Availability changes frequently. We recommend checking with your local council or visiting the Energy Saving Trust website for the latest schemes in your area.

While not grants, several finance options can help spread the cost of solar:

• 0% interest finance: Some installers offer 0% finance over 2–5 years, allowing you to spread the cost with no interest charges. Monthly payments typically work out at £100–£200.
• Green mortgages: A growing number of mortgage lenders offer preferential rates or additional borrowing for energy-efficient home improvements, including solar panels.
• Personal loans: A standard personal loan at current interest rates (6–8%) would add to the total cost, but solar savings may still exceed monthly repayments. Calculate carefully before committing.