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Solar Panel Grants

Solar Panel Grants in the UK

With energy prices still high and demand for clean power growing, many UK homeowners are exploring solar panels. While installation costs have fallen significantly, they remain a major investment. That’s where solar panel grants, schemes, and incentives can help.

Although the UK government no longer offers the generous Feed-in Tariff (FIT), there are still several ways to reduce upfront costs and improve the payback of your solar PV system. In this guide, we’ll explain the current solar panel grants in the UK, what support is available, and how you can apply.

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Are There Free Solar Panel Grants?

You may have seen offers of “free solar panels” in the past. Under older schemes, companies would install solar panels on your roof at no cost, keeping the government payments while you benefited from cheaper electricity. These programmes have ended.

However, there are still grants, loans, and incentives available that can make solar panels more affordable, especially if you qualify for government support.

Key Solar Panel Grants and Incentives in the UK

1. ECO4 Scheme (Energy Company Obligation)

The ECO4 scheme runs until March 2026 and is designed to help low-income households improve energy efficiency. While it mainly funds insulation and heating upgrades, in some cases it can cover solar PV installation if it helps reduce a household’s energy bills.

Who is eligible?

  • Low-income households on certain benefits.

  • Properties with poor energy efficiency ratings.

2. LA Flex (Local Authority Flexible Eligibility)

Some councils offer funding through LA Flex, which is linked to ECO4. Local authorities can set their own eligibility criteria, meaning some households who don’t qualify under standard ECO rules may still get help with solar panel funding.

3. Home Upgrade Grant (HUG2)

The Home Upgrade Grant is aimed at off-grid and low-income households in England. It can fund a range of energy-saving measures, including solar panels. The scheme runs until 2025, with grants available via local authorities.

4. Smart Export Guarantee (SEG)

While not a grant, the Smart Export Guarantee allows you to earn money by exporting unused solar electricity back to the grid. Suppliers pay per kWh of exported energy, typically between 2–15p/kWh. This provides an ongoing financial incentive to install solar panels.

5. Zero VAT on Solar Installations

Until March 2027, all domestic solar panel installations in the UK benefit from 0% VAT. This effectively reduces installation costs by 20% compared to pre-2022 prices.

6. Grants in Scotland, Wales, and Northern Ireland

  • Scotland: Home Energy Scotland offers interest-free loans and cashback grants for solar PV and battery storage.

  • Wales: The Welsh Government’s Nest scheme provides support for energy efficiency, though solar funding is limited.

  • Northern Ireland: NI residents can access energy efficiency grants, but direct solar support is limited compared to Scotland and England.

How Much Can You Save with Solar Panel Grants?

The level of savings depends on the scheme:

  • ECO4 / HUG2: Some households can get solar panels fully or partially funded.

  • VAT cut: Saves around £1,000–£2,000 on a typical installation.

  • SEG payments: Earn £100–£200 per year from selling unused electricity.

Combined with energy bill reductions, these incentives can make solar panels far more affordable.

Who Qualifies for Solar Panel Grants?

Eligibility depends on the scheme, but common criteria include:

  • Being on a low income or receiving benefits.

  • Living in a poorly insulated home.

  • Owning or privately renting (with landlord approval).

  • Living off the gas grid (for some grants).

If you don’t qualify for full grants, you can still benefit from 0% VAT and SEG payments.

How to Apply for Solar Panel Grants

  1. Check your eligibility – Review ECO4, HUG2, or local authority schemes.

  2. Contact your council or energy supplier – Many schemes are run locally.

  3. Get quotes from approved installers – Always compare at least three quotes.

  4. Apply with supporting documents – Proof of income, EPC rating, and ID may be required.

Are Solar Panel Grants Worth It?

If you qualify for ECO4, HUG2, or a Scottish loan/grant, the financial support can make solar panels an easy decision. Even if you don’t, the zero VAT policy, SEG income, and long-term bill savings make solar panels highly attractive.

With average installation costs between £5,000–£11,000, grants and incentives can reduce payback times and bring renewable energy within reach of more UK households.

While the days of nationwide free solar panel schemes are over, there are still solar panel grants, local authority schemes, and UK-wide incentives that make installation more affordable. From ECO4 funding to 0% VAT and SEG payments, there are multiple ways to cut upfront costs and improve long-term savings.

At SolarPanels.co.uk, we help you stay informed about the latest solar funding options and connect you with trusted installers. If you’re considering solar, now is the perfect time to explore available grants and take the first step towards cleaner, cheaper energy.