Solar Panel Grants UK 2026: Every Scheme Explained

Check What You're Eligible For

Rather than reading through every scheme and trying to work it out, use our eligibility checker. Answer a few questions about your home and it'll tell you which grants apply to you.

Now let's go through each scheme in detail: what it covers, what you actually get, and the catches nobody mentions.

UK-Wide Schemes (England, Scotland & Wales)

0% VAT on Solar Panels

This is the single most valuable incentive for most homeowners, and it's completely automatic: no application, no means testing, no waiting list. Since April 2022, solar panel installations have been charged at 0% VAT instead of the standard 20%.

Here's what that actually saves you:

The 0% rate covers solar PV panels, battery storage, inverters, and the installation labour. It does not cover purely electrical work done separately from the renewable installation.

Important: The government has not committed to extending 0% VAT beyond March 2027. From 1 April 2027, solar installations will be charged at 5% VAT (the reduced rate for energy-saving materials). That's not the end of the world, but it's worth factoring into your timing.

Smart Export Guarantee (SEG)

The SEG is the government scheme that requires large electricity suppliers (those with 150,000+ customers) to pay you for surplus electricity you export to the grid from your solar panels. It replaced the old Feed-in Tariff, which closed to new applicants in March 2019.

Unlike the Feed-in Tariff, SEG rates aren't set by the government; each supplier sets its own rate. And the variation is enormous. As of April 2026:

The key takeaway: don't just take the first SEG tariff offered to you. The difference between 6p/kWh and 25p/kWh is enormous. On a 4 kW system exporting 1,700 kWh/year, that's the difference between £102/year and £425/year. Over 20 years, it's £2,040 vs £8,500.

If you're comparing installers, ask whether they're linked to a premium SEG tariff. Using a Good Energy-linked installer and getting 25p/kWh could be worth more than saving £500 on the installation price.

How to pick the right SEG tariff

Think of it in three tiers:

1. If your installer offers a premium tariff (20–25p/kWh): take it. These are the best rates available and they're locked in at installation.
2. If you're already with a supplier offering 15p+ (British Gas, EDF, Good Energy, Ecotricity): sign up for their customer tariff. You can always switch later.
3. If neither applies, Octopus Outgoing at 12p/kWh is the best open-to-all rate. Octopus Flux and Intelligent Octopus Flux paid up to 32p/kWh during peak hours but are closed to new customers as of April 2026; if Octopus reopens them, they're worth a look for battery owners.

You need an MCS-certified installation and a smart meter to access any SEG tariff. Your installer handles the MCS certification; you can ask your supplier for a smart meter if you don't have one.

See what you could earn

How to register for SEG

1. Ensure your installation is MCS-certified (your installer handles this)
2. Get a smart meter installed if you don't have one (your supplier arranges this, free of charge)
3. Apply to your chosen supplier's SEG tariff online
4. You can switch SEG suppliers independently of your electricity supplier. Shop around annually.

England: Grants and Funding

Warm Homes: Local Grant (New for 2025)

This is the closest thing to a direct solar panel grant in England, and it's genuinely significant. The Warm Homes: Local Grant replaced the old Home Upgrade Grant (HUG) in April 2025 and is backed by £500 million of government funding running through to March 2028.

What you get: Up to £15,000 of fully funded energy efficiency measures, including solar PV and battery storage. No homeowner contribution required.

Who qualifies:

• Household income typically £36,000/year or less, although the threshold varies by council (Newcastle uses £23,000, Isle of Wight uses £38,000, most sit between £31,000 and £36,000). Always check your local council's rule.
• EPC rating of D, E, F, or G
• Privately owned home in England (including private rentals if the landlord agrees)
• Some designated postcodes qualify regardless of income

How to apply: Through your local council via GOV.UK. The council responds within 10 working days, arranges a free home survey, then recommends which measures your home needs. Solar panels and battery storage are explicitly listed as eligible measures.

This scheme is means-tested, so it won't help higher-income households. But if you earn under £36,000, it's the single most valuable scheme available. A typical solar + battery package worth £9,000–£12,000 could be installed at zero cost to you.

ECO4 (Energy Company Obligation 4)

ECO4 requires large energy suppliers to fund energy efficiency improvements in low-income and vulnerable households. It's the main route through which some homeowners receive solar panels at no cost. Tens of thousands of homes have received ECO4-funded solar so far, and around 10% of all ECO4 measures installed by mid-2025 (out of 875,900 in total) were micro-generation, the bulk of those solar PV (Ofgem ECO4 statistics, August 2025).

To qualify, you generally need to:

• Receive qualifying benefits (Universal Credit, Pension Credit, Child Tax Credit, income-related ESA, or others)
• Live in a property with an EPC rating of D, E, F, or G
• Own your home, or have a landlord willing to participate

The catch with solar under ECO4: Solar PV can only be included as part of a whole-house retrofit; it can't be a standalone measure. Your home's heating system must be a heat pump, electric storage heaters, or electric heating for solar to qualify. In practice, this means ECO4 solar usually comes as part of a package alongside insulation and heating improvements.

There's also the LA Flex route: if you don't receive qualifying benefits but your household income is below £31,000/year, your local authority can refer you to ECO4 under their flexible eligibility criteria. Contact your council's energy team to ask.

A warning about ECO4 cold callers: If someone phones you unsolicited offering "free solar panels under a government scheme," be very cautious. Legitimate ECO4 installers rarely cold-call. Check any company on the TrustMark register before agreeing to anything.

Warm Homes Plan (Announced January 2026)

Published 20 January 2026, the Warm Homes Plan is a £15 billion programme to upgrade up to 5 million homes by 2030, lift 1 million households out of fuel poverty, and support 180,000 jobs. It's billed as the biggest home upgrade programme in British history.

For solar specifically, the key components are:

• Government-backed Consumer Loan Scheme launching April 2027, with up to £1.7 billion of private finance plus £300 million of government support to deliver 0% or low-interest loans for solar panels, batteries and heat pumps, available to all homeowners regardless of income.
• £5 billion of public investment for low-income households, covering fully funded packages of solar, batteries, heat pumps, smart controls, insulation and draught-proofing.
• £2.7 billion for the Boiler Upgrade Scheme to 2030, kept open in England and Wales (this funds heat pumps, not solar, but pairs well with solar).
• A new Warm Homes Agency to take over delivery from the multiple departments and Ofgem teams that run schemes today.

The catch: The Consumer Loan Scheme doesn't open until April 2027 (gov.uk Warm Homes Plan). Exact rates, application process and detail are not yet final. The £5 billion low-income funding is delivered through the Warm Homes: Local Grant and ECO4 successor schemes. For now, don't delay a decision waiting for the loan offer. The existing 0% VAT and SEG benefits are concrete and available today.

Boiler Upgrade Scheme: Not for Solar, But Worth Combining

The Boiler Upgrade Scheme (BUS) provides £7,500 towards an air-source heat pump or ground-source heat pump. It doesn't cover solar panels directly, but installing solar alongside a heat pump is one of the smartest financial moves you can make. The solar offsets the heat pump's electricity costs, dramatically improving the combined payback period.

A heat pump plus 4 kW solar system could cost you as little as £3,000–£5,000 out of pocket after the BUS grant and 0% VAT on the solar. For more on this, see our guide to solar panels and heat pumps together.

Scotland: Grants and Funding

Home Energy Scotland (HES)

Home Energy Scotland is funded by the Scottish Government and offers grants and interest-free loans for energy improvements, but there's an important change to be aware of.

Solar PV funding closed in June 2024. As of 2026, HES no longer provides grants or loans specifically for solar panel installations. The scheme now focuses on heating systems (heat pumps), insulation, and energy efficiency measures.

What Scottish homeowners CAN still access for solar:

• 0% VAT: applies UK-wide, saves £1,000–£2,400
• Smart Export Guarantee: same UK-wide SEG tariffs
• ECO4: if you're on qualifying benefits with EPC D or below

If you're in Scotland and considering solar alongside a heat pump, it's still worth calling Home Energy Scotland on 0808 808 2282, as the heat pump element may still qualify for HES support (up to £7,500 grant plus £7,500 interest-free loan, with a £1,500 rural uplift on the grant for island and rural homes). You can install solar at the same time using 0% VAT.

Rural and island communities may also have access to additional local grants. Ask HES about area-specific support.

Wales: Grants and Funding

Nest (Warm Homes Nest Scheme)

The Welsh Government's Nest scheme provides free home energy improvements (including solar panels) to eligible households in Wales. The Welsh Government has invested over £251 million in Nest from 2011 to 2024, helping more than 60,000 households (gov.wales annual reports).

To qualify:

• Own or privately rent your home in Wales
• Receive means-tested benefits OR be a low-income household
• Have an EPC rating of 54 (E) or lower; or 68 (D) or lower if someone in your household has an eligible health condition affected by cold (respiratory, circulatory, mental health, dementia, or developmental conditions)

Nest is fully funded, with no cost to qualifying households. Call 0808 808 2244 or visit the Nest website to check eligibility.

Green Homes Wales

If you don't qualify for Nest, Green Homes Wales offers interest-free loans from £1,000 to £25,000, repayable over up to 10 years, for energy efficiency improvements including solar panels, batteries and heat pumps. A six-month repayment holiday is built in so the savings start before the repayments do.

For some measures, the scheme also offers a grant covering up to 30% of eligible project costs alongside the loan, so the out-of-pocket cost can be lower than the headline loan amount suggests.

There's no means test; it's open to all Welsh homeowners. The Welsh Government has put more than £5 million of new funding into the scheme for 2026 to 2027 (gov.wales). Apply through the Development Bank of Wales on a first-come, first-served basis.

Welsh homeowners also benefit from 0% VAT, SEG, and ECO4 (which covers Great Britain: England, Scotland and Wales).

Solar Together: Group Buying Discounts

Solar Together is a council-backed group-buying scheme that runs in some areas of England. Residents register their interest, a reverse auction is held, and vetted installers bid to win the whole batch at a discounted price.

Typical savings: 30 to 35% below average solar panel costs (around £2,500 off a typical 3-bed installation, source: Sunsave 2026). Some councils with stronger competition see closer to 35%, others closer to 20%, depending on the local installer market.

It's not available everywhere, as it depends on whether your local council participates. As of 2026, active areas include Surrey, Warwickshire, Oxfordshire, the West of England (Bristol, Bath & North East Somerset, South Gloucestershire, North Somerset) and Kent (Ashford plus 11 other district and borough councils). It does not run in Scotland or Northern Ireland. Check your council's website or search "Solar Together [your area]" to see if it's running near you.

There's no means test; it's open to all homeowners and businesses in participating areas. The installation quality is typically good because the council vets the installers.

What Each Scheme Is Actually Worth

The Myths You Need to Ignore

Myth: "There's a £5,000 Government Grant for Solar in England"

This one circulates endlessly on social media and in dodgy Facebook ads. There is no universal £5,000 solar grant in England. The Warm Homes: Local Grant can cover much more than that, but it's means-tested (income under £36,000) and you need an EPC of D or below. If someone is advertising a flat "£5,000 grant" with no mention of eligibility criteria, they're misleading you.

Myth: "Free Solar Panels"

The "free solar panels" offers from the early 2010s were rent-a-roof schemes, where a company installed panels on your roof for free, kept all the Feed-in Tariff income, and left you with only modest bill savings. These schemes are essentially extinct now that the FiT closed in 2019. Any company still marketing "free solar panels" should be approached with extreme caution. Read the small print. You may be signing a 20–25 year lease that complicates any future sale of your home.

The exception is ECO4 and Nest, which genuinely provide free solar panels to eligible low-income households. But the eligibility criteria are strict, and you won't get cold-called about them.

Myth: "Solar Pays for Itself in Two Years"

At April 2026 prices, realistic payback periods are 7 to 10 years for solar only and 9 to 13 years for solar with battery storage (Sunsave, EcoFlow and switchtogether 2026 calculations). A typical 4kW system at £6,000 installed pays back in around 9 to 10 years, and a 4kW + 5kWh battery at £10,000 installed in around 12 to 13 years. Anyone claiming two years is using fantasy assumptions about electricity prices or self-consumption. See our solar panel costs guide for a full breakdown.

Schemes That Have Ended (Don't Get Caught Out)

If you're researching solar grants, you'll find a lot of outdated information about schemes that no longer exist. Here's what's closed:

If any website or company references these schemes as current, their information is out of date, or they're deliberately misleading you.

How to Maximise Your Total Support

The smartest approach depends on your circumstances:

If your household income is under £36,000 (England)

1. Apply for the Warm Homes: Local Grant through your council; you could get fully funded solar + battery
2. If that doesn't work out, check ECO4 eligibility (especially via the LA Flex route)
3. Either way, you'll benefit from 0% VAT and can register for SEG once installed

If you're on qualifying benefits (anywhere in UK)

1. Check ECO4 first, as this could cover solar as part of a whole-house package at no cost
2. In Wales, also check Nest
3. In England, also check Warm Homes: Local Grant

If you're a higher-income homeowner

1. Act before 31 March 2027 to get 0% VAT (saving £1,000–£2,400)
2. Choose an installer linked to a premium SEG tariff (20–25p/kWh), as the higher export income over 20+ years can be worth more than a cheaper installation price
3. Check if Solar Together is running in your area for 30–40% installation discount
4. Consider pairing with a heat pump to access the £7,500 BUS grant for the heating element

If you're in Wales

1. Check Nest first (fully funded if eligible)
2. If not eligible for Nest, use Green Homes Wales for an interest-free loan up to £25,000
3. Benefit from 0% VAT and SEG on top

If you're in Scotland

1. HES no longer funds solar directly, but call 0808 808 2282 anyway; they may help with a combined heat pump + solar approach
2. Check ECO4 if you're on qualifying benefits
3. Benefit from 0% VAT and SEG

Bottom line: Most homeowners in England won't get a direct cash grant for solar, but 0% VAT (saving £1,000–£2,400), a good SEG tariff (£100–£425/year), and potentially a premium installer-linked export rate can make the total financial picture much better than it first appears. If your income is under £36,000, the Warm Homes: Local Grant changes the picture entirely. Apply before doing anything else.