Solar Panel Grants

Solar panel grants can help some households pay for installation, but support depends on where you live, your circumstances and your home. In England, the Warm Homes: Local Grant can fund solar panels for eligible households following a survey. Other UK nations have different arrangements, explained below. Check the government’s grant guidance.

It also helps to separate installation funding from other incentives. VAT relief reduces the tax on qualifying work, while the Smart Export Guarantee pays for electricity you export after installation. Neither is an upfront solar panel grant. HMRC VAT guidance, Ofgem’s Smart Export Guarantee guidance.

This guide focuses on domestic solar photovoltaic panels, usually called solar PV, which generate electricity.

Solar panel funding in England

Warm Homes: Local Grant

The Warm Homes: Local Grant can cover agreed energy improvements for eligible households in England. Your home must be privately owned, either by you or your landlord, and have an Energy Performance Certificate (EPC) rating of D, E, F or G.

Household income must usually be £36,000 a year or less. You may still qualify above this threshold through an eligible postcode or certain benefits.

The council assesses your home and decides which improvements are suitable. Solar panels are one possibility; qualifying for the scheme does not guarantee that they will be offered.

If work is approved and funding is available, the council arranges and pays for it. A landlord may need to contribute.

Start with the official Warm Homes: Local Grant eligibility checker. Check funding before commissioning an installation yourself.

What if you live in social housing?

Ask your council or housing association whether your home is included in an energy improvement programme.

England’s Warm Homes: Social Housing Fund supports upgrades through social landlords. Its Wave 3 application window has closed, but successful landlords are delivering funded work through to September 2028. This is a route managed by your landlord, rather than a household application for a cash grant. Government guidance on the Social Housing Fund.

Can ECO4 pay for solar panels?

ECO4 can support solar panels in qualifying homes in Great Britain, but it is an energy supplier obligation rather than a conventional government grant.

Eligibility may come through qualifying benefits or an ECO4 Flex referral. Flex allows participating councils and devolved administrations to identify additional households needing support. Meeting the criteria does not guarantee an installation, and the level of financial support can vary. Ofgem’s guidance for homeowners and tenants.

Your heating system affects eligibility

ECO4 has specific rules for solar PV. The property must have a qualifying heating system already, or receive one as part of the project. Eligible systems include heat pumps that heat water for the home’s heating system, high heat retention storage heaters and certain electric heating systems.

The solar electricity must help provide heat in the home. A suitable roof and a low income alone do not establish eligibility for ECO4 solar panels. Ask the provider to confirm how your existing or proposed heating system meets the rules. ECO4 delivery guidance, solar PV section.

Is ECO4 still running?

ECO4 has been extended to 31 December 2026. Older guides giving March 2026 as its end date are out of date. The extension does not guarantee that a particular supplier still has funding available for your home. Ofgem’s updated ECO4 guidance.

Contact a participating energy supplier or your council’s energy advice team to ask about current opportunities. Before agreeing to anything, get written confirmation of the proposed work and any contribution you would need to make.

Support in Scotland, Wales and Northern Ireland

Scotland

Start with Home Energy Scotland for advice on the funding available for your circumstances.

The current Home Energy Scotland Grant and Loan funding list does not include ordinary solar PV panels or battery storage. It does list loans of up to £5,000 for solar water heating and eligible hybrid solar PV/water heating systems.

These are different technologies: solar water heating produces hot water, while a hybrid PV-T system produces electricity and heat. Neither should be confused with a standard rooftop solar PV installation.

Do not assume that a grant advertised for heat pumps or insulation also covers solar panels. Check Home Energy Scotland’s current funding list.

Households struggling to keep their home warm should also ask about Warmer Homes Scotland. An assessment determines the support and improvements available; it should not be treated as a guaranteed standalone solar grant.

Wales

The Welsh Government’s Nest scheme can provide a package of free energy improvements, potentially including solar panels. The package depends on your eligibility and what your home needs. Welsh Government Nest overview.

You must own or privately rent your home and either receive a qualifying means-tested benefit or meet the scheme’s low-income criteria.

The property normally needs an EPC rating of E or below. Homes rated D can qualify where someone in the household has an eligible health condition. The guidance also provides a reserve-list route for D-rated homes without an eligible condition.

Nest’s income thresholds depend on household composition and account for mortgage or rent payments. Do not apply England’s £36,000 threshold to a Welsh application.

Check the Nest eligibility guidance or call 0808 808 2244. Private tenants will need their landlord’s permission for work.

Northern Ireland

NI Direct currently states that there is no financial support for homeowners wishing to generate their own electricity through domestic renewable technologies such as solar panels.

Qualifying installations can still benefit from zero-rated VAT. For advice on your options and other home energy support, contact NI Energy Advice through the official Northern Ireland guidance.

How VAT relief works

Qualifying solar panel installations in UK residential accommodation currently attract 0% VAT until 31 March 2027. Under the published rules, the rate then returns to 5% from 1 April 2027.

Qualifying battery installations also benefit, including certain batteries added to existing systems and standalone installations.

The relief applies to qualifying installation work. Buying equipment on its own is not automatically covered by the same treatment. Ask your installer to show the VAT position clearly on the quotation. HMRC’s energy-saving materials guidance.

Do not deduct VAT relief twice

If an installer quotes £6,000 including VAT at 0%, the amount payable is £6,000. You cannot then take another percentage off that total as a “VAT grant”.

For illustration, an unchanged £6,000 price before VAT would become £6,300 at 5% VAT. That £300 difference is a tax calculation, not a prediction of future installation prices.

Getting paid for exported electricity

The Smart Export Guarantee (SEG) pays eligible generators in England, Scotland and Wales for electricity exported to the grid. It does not pay for installing the panels.

Suppliers set their own rates and contract terms. SEG rates must be above zero, and payments are based on metered exports. Compare the conditions as well as the headline rate before choosing a tariff. Ofgem’s SEG guidance.

A simple export payment example

Suppose your system exports 1,000 kilowatt-hours (kWh) over a year and your export tariff pays 10p per kWh:

1,000 kWh × £0.10 = £100 in export payments.

These are illustrative assumptions, not a current tariff recommendation or a forecast for your home.

Keep export income separate from savings on electricity you use yourself. The same unit of solar electricity cannot be counted as both consumed at home and exported.

How to check an offer and apply

Start with the scheme’s official website, your council or the relevant national energy advice service. This helps establish whether an advertised offer matches a real funding route.

Before accepting an offer, ask:

1. Which scheme is providing the funding? Get its name and the organisation responsible for approving your application.

2. What has been approved? Request a written description of the panels, inverter, installation work and any battery.

3. What will you pay? Confirm any contribution, exclusions or separate finance agreement.

4. Who owns and maintains the equipment? Ask who handles faults, warranties and future repairs.

5. Who receives export payments? Establish this before assuming that all exported electricity will earn you income.

6. When can work begin? Confirm the approval process before paying a deposit or appointing an installer.

A grant, a loan and an arrangement allowing a company to use your roof have different consequences. The word “free” does not explain the contract.

Prepare your information

Having the following ready can make an initial assessment easier:

• Your address and whether you own or rent.

• Your EPC, if available.

• Evidence of income or relevant benefits.

• Details of your heating system.

• Your landlord’s details, where applicable.

• Information about solar panels or other funded improvements already installed.

The provider will confirm the exact documents needed.

What if you do not qualify?

You can still compare a privately funded installation, allowing for any applicable VAT relief and export payments. Keep the installation price separate from estimated future savings.

Ask for a quote that identifies the panels, inverter, scaffolding, electrical work, certification and any battery. For further budgeting detail, see iHeat’s solar panel cost guide.

If a quote includes a battery, request the price with and without it. Ask the installer to explain the assumptions behind each savings estimate, including electricity use, generation and export rates.

Your next step is to check the funding route for your nation before booking work. If support is available, get the approved package and any customer contribution in writing. If it is not, compare complete installation quotes using the same equipment scope and savings assumptions.