Solar Panel Grants & Funding in The UK in 2026

Let's not beat around the bush; solar panels can be expensive. However, thanks to recent technological advances and the UK government's latest grants and incentives, switching to greener energy has become more affordable than ever.

A quick summary of current solar panel grants

How much do solar panels cost?

Over the last few years, the technology behind solar panels has greatly improved, while their price has slowly decreased. Today, the average 10-panel system can cost between £6,000 and £7,000, based on your system size, power output, and optional home storage battery. Which means, when paired with a government grant, you can take advantage of even greater savings.

Current solar grants and incentives

Discover the latest round-up of solar panel grants, loans and incentives available for homeowners, renters, and landlords throughout the UK.

0% VAT on solar panels

UK homes can benefit from paying zero VAT on solar panel materials and installation until the 31st of March 2027, where it will return to 5% VAT. While at 0%, the average family can save over £1,000¹ on their installation,  and between £360-£600² on their annual energy bills.

Top tip: Take advantage of BOXT’s interest-free solar installations, to enjoy even more savings.

What eligibility criteria do you need to meet?

To be eligible for the 0% VAT scheme, your home and solar installation must meet the following requirements:

• You purchased the installation and solar panel products together.

• The solar panels aren't suitable for a DIY installation.

How do you apply for the 0% VAT grant?

If your solar materials and installation qualify, then 0% VAT will be automatically applied by your installer. There's no need to fill out an application form.

Warm Homes: Local Grant

The government aims to reduce energy bills and carbon emissions by improving home energy efficiencies. Lower-income and fuel-poor homeowners and private renters in England can benefit from grants of up to £15,000 for energy-efficiency upgrades, like insulation, solar panels, and heat pumps.

What eligibility criteria do you need to meet?

You're eligible for the Warm Homes: Local Grant if you:

• Are a homeowner or private renter in England with an EPC rating of D–G, 

• Have annual household income under £36,000, and

• Receive any of the following benefits:

  • Universal Credit

  • Pension Credit

  • Housing Benefit

  • Income Support

  • Income-based Jobseeker’s Allowance (JSA)

  • Income-related Employment and Support Allowance (ESA)

  • Tax Credits (including Child Tax Credit)

  • Council Tax Support

How do you apply for the Warm Homes: Local Grant?

Homeowners can check their eligibility and apply through the Government website. While renters must apply through their landlord.

The new Warm Homes Plan 

As part of the Warm Homes Plan, the government has pledged £15 billion to reduce fuel poverty and energy bills in England, in 5 million homes by 2030. It will provide loans and grants for energy efficiency measures, including solar panels. As well as new energy efficiency standards for renters.

What eligibility criteria do you need to meet?

You're eligible for the new Warm Homes Plan if you:

• Are a homeowner or private renters in England with an EPC rating of D, E, F or G, and

• Have annual household income under £36,000.

Alternatively, you will qualify if you receive any of these means-tested benefits:

• Universal Credit

• Pension Credit

• Housing Benefit

• Income-based Jobseeker’s Allowance (JSA)

• Income-related Employment and Support Allowance (ESA)

Or, if you live in certain lower-income postcodes.

How do you apply for the new Warm Homes Plan?

Homeowners and tenants can check their eligibility and apply through the Government website. However, renters will be redirected to contact their local council.

Smart Export Guarantee (SEG)

SEG launched in January 2020, and currently has no end date. This scheme requires energy suppliers to pay homeowners for every unit of unused solar electricity they have fed back into the National Grid.

What eligibility criteria do you need to meet?

If your home features any of these green energy measures and were fitted by a certified installer, you can qualify for SEG:

• Solar PV panels

• Wind 

• Micro-combined heat and power (micro-CHP) 

• Hydro

• Anaerobic digestion (AD) 

Important note: A smart reader must be installed to provide regular export readings.

How do you apply for SEG?

You'll need to apply directly to a licensee – this is any electricity supplier that offers an SEG tariff. These companies must offer you a tariff if your solar panel system is eligible, however tariffs often change, so you may wish to shop around to find the most competitive price.

Top tip: You can get your SEG tariff from any electricity company; it doesn’t need to be the same company you source your electricity from.

Warm Homes Nest Scheme

The Welsh government is offering free advice and home energy efficiency improvements to lower-income households, to help reduce fuel poverty and energy bills, while improving health. This includes free upgrades such as insulation, heat pumps, solar panels, and new boilers.

What eligibility criteria do you need to meet?

You're eligible for the Warm Homes Nest Scheme if you:

• Are a homeowner or private renter in Wales, and

• Are on a low income or receive any of the following benefits:

  • Child Tax Credit

  • Council Tax Reduction

  • Housing Benefit

  • Income-based Jobseeker’s Allowance

  • Income-related Employment and Support Allowance

  • Income Support

  • Pension Credit (Guarantee Credit or Savings Credit)

  • Universal Credit

Alternatively, you will be eligible if someone in your household has one of the following chronic health conditions:

• Respiratory disease

• Circulatory disease

• Mental health issue, or

• Another issue that affects your mobility or immunity

How do you apply for the Warm Homes Nest Scheme?

Call the Welsh Government’s Warm Homes Nest scheme on 0808 808 2244 (Mon-Fri 9am-6pm). Or visit the gov.wales website and request a callback. An advisor will review your assessment, and on qualifying, you will receive a free home energy survey.

Home Energy Scotland (HES) grants and loans

This Scottish Government-funded initiative provides homeowners and private tenants with grants and loans for energy-efficient home improvements and heating systems, including solar panel installations.

Please note: This scheme operates on an annual rolling first-come first-served basis, with funding subject to availability. Grants are no longer available.

What eligibility criteria do you need to meet?

You're eligible for a Home Energy Scotland grant or loan providing your installer is MCS-certified, and you are a homeowner or private tenant looking to improve your primary home.

How do you apply for Home Energy Scotland’s grant or loan?

Call Home Energy Scotland directly on 0808 808 2282 to determine your eligibility, or fill in the online contact form. Next you will speak with an advisor about suitable measures. After finding an approved installer, you will receive an application link. Just submit your quotes and wait for approval.

Energy Company Obligation 4 (ECO4)

Set to expire in March 2026, the ECO4 Scheme is a government initiative to improve fuel poverty and reduce carbon emissions. 

What eligibility criteria do you need to meet?

You're eligible for the ECO4 scheme if you:

• Are a homeowner, landlord, or private tenant

• Have a property with inefficient heating (D, E, F, or G EPC rating)

• Receive any of the following benefits:

• Jobseekers Allowance (JSA), income-based

• Employment and Support Allowance (ESA), income-related

• Housing Benefit

• Pension Credit

• Income Support (IS)

• Universal Credit (UC)

• Work Tax Credit (WTC)

• Warm House Discount Scheme Rebate

• Child Tax Credits

• Child Benefit, depending on income threshold

If you don’t receive benefits but live in a household with a lower-income, take a look at the ECO4 Local Authority Flex & Delivery Scheme, also referred to as LA Flex. Through this, your local council can decide your eligibility based on income, your home’s total number of occupants, and more.

How do you apply for the ECO4 grant?

If you are eligible, you can contact an energy supplier or a trusted installer directly to check for funding. Next, a certified surveyor will visit your home for free to confirm its suitability for ECO4 and to determine your best energy-efficiency measures.

Are solar panels worth it?

As energy bills continue to skyrocket, you can enjoy more and more benefits from installing solar panels on your property. From producing clean energy all year round to reducing energy bills by up to 90%. And from lowering your carbon footprint to benefitting from supportive government schemes.

Considering investing in solar panels? Speak with one of our solar experts for free.

We’ll help you design the most energy-efficient solar system for your home and show you how much money you’re expected to save over time. We also offer a range of finance plans, from 0% with a home storage battery to 120 months at 11.9% APR, to help you save even more.

To get started, just answer a few questions about your home. Or contact our specialist team today, on live chat.

¹ Based on a typical 3.5 kWp to 4 kWp system, installed on most three-bedroom homes.

²Based on system size and whether a home storage battery is installed. In line with the OfGem pricecap.