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Solar panel grants make free energy from the sun available to more households. With around 1.3 million homes[1] already enjoying the benefits of solar panels, our experts are here to help you determine your eligibility for these grants.
The average cost of solar panels for a three-bedroom home is between £8,500 and £9,100, including a battery. However, once installed, solar panels can save you £1,190, meaning you could break even within eight years.
A solar panel grant can reduce or even eliminate the initial outlay, and if you’re a low-income household or receive government benefits, you’re likely to qualify for funding. We’ve detailed the latest application criteria necessary for government grants throughout the UK, looking at the financial help available. Our experts have included other funding options, such as green mortgages and solar panel subscription plans, to help keep your outlay as low as possible.
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UK homeowners can access several solar panel grants and other incentives designed to encourage renewable energy adoption and reduce household bills.
We regularly review solar panel funding and update our information with the latest government and financial organisations’ announcements. Last updated 12 July 2024.
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The eligibility requirements for solar panel grants vary greatly from scheme to scheme. For example, you may need to live in a particular area or type of property to meet specific income or financial requirements or reside in a building with poor energy efficiency.
To avoid wasting time and effort, make sure you understand and fulfil the eligibility criteria for a particular grant before applying. The organisation administering the grant will usually outline the exact details of these requirements and post them on the relevant scheme’s website.
Ofgem manages the UK government’s Energy Company Obligation (ECO) scheme. It places a Home Heating Cost Reduction Obligation (HHCRO) on medium- and large-sized energy suppliers and works to enhance the performance of the country’s least energy-efficient homes, which are those with an Energy Performance Certificate (EPC) rating of D or lower. The scheme also focuses on low-income families and other vulnerable households receiving government assistance, such as income support or child benefit.
The ECO scheme has undergone multiple phases, each with slight differences in focus and eligibility criteria. If you receive any of the following benefits, you could qualify for fourth-phase ECO4 funding:
Anyone who receives additional Department for Work and Pensions (DWP) benefits could also be eligible for ECO4, regardless of whether they receive universal credit.
The ECO4 grant primarily focuses on owner-occupied homes. However, it supports those in energy-inefficient social housing and privately rented residences, provided the property owner grants permission for work to take place.
Applying for an ECO4 grant is quick and straightforward. It’s available through several solar panel installers, which you can find via an online search. The application process is generally the same no matter what company you pick:
Local Authority Flexible Eligibility (LA Flex) is an extension of the ECO4 scheme. Under this initiative, local authorities can determine eligibility for energy efficiency measures and award them to households that didn’t qualify under the national criteria. Circumstances might include the following:
Private tenants can qualify for LA Flex with their landlords’ permission. If you’re eligible under ECO4 or LA Flex, you could be entitled to up to 100 per cent off the cost of your solar panels.
Our researchers spoke with Kevin Henney, director at ECO4 Hub, to better understand how the ECO4 grant works.
Independent Advisor (IA): First, please tell us a little about yourself and your role.
ECO4 Hub Director Kevin Henney (Henney): I currently serve as Director at ECO4 Hub. I’m responsible for managing and overseeing all the activities related to the ECO4 grant programme. This includes reviewing grant applications, coordinating with local authorities and ensuring the smooth and efficient installation of energy-efficient systems for our clients.
IA: How many grants have been approved over the past 12 months? And have you seen an increase in grant applications in that time?
Henney: Over the past six months, we’ve successfully finished over 60 installations and have more than 100 slated for the near future.
Over the last year, we’ve observed a significant uptick in grant applications. This surge can be attributed to the rising cost of living and energy and increased awareness about the grant.
IA: Can you give us an idea of how much money successful applicants are typically awarded? Is there a range or an average amount you can share?
Henney: The amount awarded per grant varies greatly depending on the work required for each property. Our goal under the regulations is to maximise energy efficiency.
We’ve dealt with diverse projects, from single-measure installations, such as a boiler replacement worth £5,000, to comprehensive energy makeovers involving internal wall insulation, loft insulation, an upgrade to an air source heat pump and the installation of solar panels, with a total value exceeding £80,000.
IA: How long does it usually take for someone to get their grant approved?
Henney: The approval time for a grant depends on a few factors, but there are two main routes that can be followed:
IA: Once a grant is approved, what are the next steps for a homeowner? How long does it take from approval to solar panel installation?
Henney: Once a grant is approved and the client confirms they’re happy with the proposed work, we can proceed to installation. In some cases, we’ve even completed installations within the same week of approval.
IA: Are there any common mistakes people make when applying that can slow down the grant approval process?
Henney: The most common issues that can delay the process include incorrect spelling of the applicant’s name and not having the necessary documentation for local authority approval, such as a council tax bill. Paying attention to these details is essential to ensure a smooth application process.
IA: What documentation must applicants submit when applying for the ECO4 grant?
Henney: If you receive benefits, you must sign a consent form, which the Energy Saving Trust verifies, and provide a copy of a utility bill. If you apply under the LA Flex criteria, you’ll need your council tax bill, ID and proof that the annual household income is under £31,000. This evidence may be in the form of a pension statement, three months’ payslips and bank statements or a P60 dated in the last six months.
Solar Together is a scheme in the UK’s local council regions that brings together households and local authorities to create a collective buying group for solar panels. This makes solar power more accessible and affordable for homeowners and small businesses.
Interested parties register, and companies bid for the chance to install solar panels for the group. This results in a more competitive installation price than an individual household could typically negotiate.
Once a provider is selected, each registered participant receives a personal recommendation tailored to their needs. At that point, they can decide whether to proceed with the installation.
The Solar Together scheme aims to promote the use of renewable energy, reduce carbon emissions and help households save money on their energy bills. It provides a platform for more affordable and higher-quality solar panel installations and offers complete technical surveys and thorough customer service.
How to apply for the Solar Together scheme
Homeowners living in a participating council area must register their interest on Solar Together’s website.
The Home Upgrade Grant Phase 2 (HUG 2) scheme has been operating since April 2023 and will continue to accept applications until March 2025. It supports low-income families and awards grants of up to £10,000 for solar panels and other energy-efficient home improvements.
Eligibility for privately rented homes is limited to landlords with a maximum of four properties. These building owners must pay one-third of the total cost of any upgrades.
To be eligible for HUG2, you must:
How to apply for HUG2
If you’re a homeowner, check whether your local council offers the HUG 2 scheme and, if so, apply directly. If you live in a privately rented property, your landlord must submit the application.
From 6 June 2024, the Home Energy Scotland Grant and Loan Scheme will no longer accept new applications for solar panels and energy storage systems, including electric and heat batteries.
However, if you received approval between 27 June 2023 and 6 June 2024, the scheme can still fund your solar panel and battery system until 31 July 2024. Any applications submitted before 6 June 2024 will continue to be processed normally.
Available to all homeowners in Scotland, the Home Energy Scotland Grant and Loan Scheme can award grants or provide interest-free loans for energy-efficient home improvements.
A rural uplift is also available to provide extra support to rural and island homes, which typically face higher costs for upgrades.
The Scottish government’s scheme can help with:
How to apply to the Home Energy Scotland Grant and Loan scheme
If you’re a homeowner, get in touch with Home Energy Scotland by email, phone or WhatsApp to apply for assistance.
The Welsh government’s Warm Homes Nest scheme provides free advice on residential energy-efficiency improvements. Eligible households may qualify for free home improvements, including solar panel installation.
You could be eligible for free solar panels if you meet the following three criteria:
How to apply to the Nest scheme
If you have questions about the scheme or your eligibility, call Nest for free advice. You can also consult the Welsh government’s website, which provides information and guidance about the programme.
The UK government introduced the Smart Export Guarantee (SEG) on 1 January 2020 to replace the Feed-in Tariffs (FIT) scheme. The SEG mandates that larger energy suppliers must offer export tariffs to customers who generate renewable electricity.
Anyone who installs a renewable energy system – such as solar panels or wind turbines – with a capacity of up to 5MW can qualify for the SEG. Applicants must also have an export meter and obtain an MCS certificate or equivalent document. You aren’t required to include a solar storage battery in your system to qualify for the SEG, but it could be beneficial to prevent wasting surplus energy.
You must apply directly to an energy supplier that offers these tariffs to receive payment under the SEG scheme. Ofgem’s website lists the participating companies.
It’s worth noting that your energy supplier doesn’t need to be your SEG tariff supplier. They can be separate entities.
Energy companies to which the SEG mandate applies are required to offer you a tariff. However, they can set the tariff’s terms, which could be fixed or variable.
Remember that these tariffs can shift over time, so you’ll need to regularly review them to ensure you’re getting a competitive rate.
If you own a storage device that imports and exports electricity – such as a household battery or an electric vehicle – you could benefit from the SEG. Your SEG tariff supplier can advise you on this.
The value added tax (VAT) rate on most goods and services in the UK is 20 per cent. However, as part of the government’s efforts to promote energy efficiency and the adoption of renewable energy, certain energy-saving materials and equipment, including the best solar panels, qualify for a reduced VAT rate.
This reduced rate is currently zero per cent until 31 March 2027. It applies to the supply and installation of solar panels on residential properties in England, Scotland and Wales.
How to apply
You don’t need to apply for zero VAT, as your solar panel provider should automatically take care of it.
Several other organisations run incentives to help UK homeowners finance solar panel installations.
| Scheme | Run time | Eligibility | Potential savings |
|---|---|---|---|
| Barclays Greener Home Reward | Ongoing | First-time claimers with a Barclays residential mortgage who pay by direct debit | £1,000 |
| Sunsave Plus subscription | Waiting list for applications | UK residents aged 18-60 who are property owners with full-time jobs. Acceptance is subject to status | Pay for your solar installation in monthly instalments |
Barclays launched its Greener Home Reward scheme as part of the company’s commitment to encouraging energy-efficient home improvements. It provides a £1,000 cash reward that helps its UK residential mortgage customers fund solar panel systems they’ve installed and paid for in full, making their shift to sustainable energy more affordable.
To make sure that the solar installations are of the highest quality, Barclays requires them to be carried out by businesses registered with TrustMark.
If you applied for this scheme on or before 31 January 2024, you’ll need to submit your claim form by 31 July 2024. You’ll then have another month to provide proof of your home improvements. If the bank received your application on or after 1 February 2024, you must claim the reward within nine months of your application date and provide proof of the completed work.
How to apply
Applying for the scheme online is easy. If you have any questions, you can also phone Barclays.
Sunsave secured funding for its Electric Roof Project as part of the government’s efforts to promote renewable energy. The company has been installing solar panel systems since 2022 through its Sunsave Plus subscription service, designed to make solar panels affordable for more homeowners. Monthly fees start at £69 with no upfront costs.
The subscription plan includes a 20-year maintenance and monitoring service, battery and inverter replacements and access to tariffs for varied electricity rates, all of which can increase your savings.
How to apply to Sunsave Plus
You can apply for the scheme on Sunsave’s website, but there’s currently a waiting list.
Although there aren’t many grants for solar panels in Scotland, Scottish residents can take advantage of programmes such as the Home Energy Grant and Loan Scheme and ECO4. If you live in Wales, the Warm Homes Nest scheme offers free advice, and eligible homeowners could receive financial assistance for solar panel installation through this Welsh government grant for solar panels. While there are no specific grants for solar panels in Northern Ireland, homeowners can still save on the initial cost of solar thanks to the zero VAT scheme and the Barclays Greener Home Reward.
During our extensive research into the various funding schemes and government grants for solar panels, we found several websites that claimed to offer government-backed funding. However, further investigation found these weren’t linked to any official programmes. To avoid falling victim to scam solar panel schemes and to ensure you’re applying for legitimate, beneficial government grants, be sure to follow these simple steps:
A number of solar panel grants have recently expired. These programmes typically had fixed time frames or funding caps. So once a certain date was reached or the available funding was exhausted, the grant was closed and no longer available to new applicants. Here are some examples of recently expired schemes:
| UK expired grant | Expiration date | Eligibility | Potential savings |
|---|---|---|---|
| Feed-in Tariff | Expired 1 April 2019 (applicants registered before this date will continue to benefit for the remainder of the 20-year period they signed up for) | Owners of solar panels, wind turbines, and micro combined heat and power systems | Generation tariff of 6.38-13.88p per kWh; export tariff of 4.77p per unit |
| Green Homes Grant | Expired 31 March 2021 | All homeowners in England | Up to two-thirds of the total cost (to a maximum of £5,000) or up to 100 per cent (to a maximum of £10,000) for those on qualifying benefits |
| Renewable Heat Incentive | Expired 31 March 2022 | Owners of biomass boilers, heat pumps and solar thermal collectors | Up to £2,981 |
| Free Solar Panel Scheme | Expired March 2019 | All homeowners | Entirely free solar panel system (in exchange for your installer receiving all FiT payments) |
The UK government’s FIT scheme planned to encourage the uptake of several small-scale renewable and low-carbon electricity generation technologies.
Homeowners who installed renewable electricity systems under this scheme, such as solar panels, wind turbines or hydroelectric power, could receive payments from their energy supplier. Those payments were based on the electricity the homeowners generated and used and any surplus energy they exported to the National Grid.
Although the scheme closed to new applicants in March 2019, existing contracts continue to be honoured for a maximum of 20 years.
[1] Sunsave, How many homes have solar panels in the UK?, June 2024
[2] Department for Business, Energy & Industrial Strategy, UK Rooftop Solar Behavioural Research: A report by Basis Social, July 2021.
Several grants are available to households in the UK, allowing more people to benefit from the advantages of solar panels.
Solar panel grants and incentives include the ECO4 scheme and the SEG. Local authorities in England and the devolved governments of Scotland, Wales and Northern Ireland also offer several other grants, loans and types of support to those installing solar panels.
Budget constraints are often responsible for the closure of many solar panel grants, as governments must allocate finite resources. Since solar panel costs are now significantly cheaper than 10 years ago, market forces alone are sufficient to encourage adoption without subsidies. Additionally, grant schemes may end due to administrative issues, poor results or low uptake from eligible households.
Grants for solar panels are typically available to homeowners, landlords and sometimes tenants through various government schemes to promote the use of renewable energy. Eligibility for these grants often depends on factors such as income, property type and location.
Additionally, local authorities and energy providers may offer regional grants and incentives. It’s essential to check current offerings, as programmes can change, and new opportunities may arise to support solar panel installations.
Pensioners may be eligible for grants or financial assistance for solar panel installation through various government schemes. Eligibility can depend on factors such as income and the local authority under which the property is located. Pensioners should check with local authorities and energy providers for specific programmes and grants that may be available to support their solar panel installations.
Free solar panels are not specifically available for recipients of personal independence payment (PIP). However, initiatives such as ECO4 offer solar panel installations for low-income households, including those receiving various means-tested benefits.
