While many of us are considering installing solar panels to power our homes, others may be intimidated by the fact that they may be complicated or expensive to install.
Last reviewed: September 2026.
The honest position in 2026 is this: there is no single, universal solar panel grant that every UK household can apply for. What exists instead is a mix of income-tested funding, tax relief that everyone gets automatically, and payment for the electricity you export. Several of the schemes that dominated this conversation for years — ECO4, the Green Deal, the Feed-in Tariff — have now closed.
This guide sets out what is actually live, what has closed, and where to go depending on whether you live in England, Wales or Scotland.
The Different Solar Panel Grants in the United Kingdom
Cutting household emissions remains central to UK policy. The UK is legally committed to net zero by 2050 under the Climate Change Act 2008 (as amended in 2019), and Scotland has its own target of net zero by 2045. Domestic solar sits squarely inside that.
What that support looks like in practice, though, has shifted. The era of large, broadly available solar subsidies is over. Commonly, today’s support covers the purchase and installation of solar PV panels only for lower-income households, while everyone else benefits from tax relief and export payments.
Here is what is available right now.
1. Smart Export Guarantee (SEG)
The Smart Export Guarantee (SEG) has supported households since January 2020, allowing them to earn money from the solar panel system installed in their homes. It is the closest thing to a universal solar incentive in the UK, and the one nearly every domestic solar owner should be signed up to.
This scheme is unlike funding programmes that lessen the upfront cost paid when installing solar panels. It instead provides a way for consumers to recoup their investment over time.
The SEG requires larger energy suppliers to pay homeowners for unused solar-generated electricity fed back to the National Grid. Under this scheme, you are paid for every unit of EXCESS electricity you channel back.
The Smart Export Guarantee is not a direct government grant for solar panels. It is an obligation: licensed electricity suppliers with more than 150,000 customers must offer an export tariff and pay for surplus energy.
How Does Smart Export Guarantee (SEG) Work?
As a generator, you shop around for the SEG licensee offering the best deal — specifically the price per kWh of excess energy exported.
Suppliers set their own rates, and they vary enormously. As of 2026 they run from around 3p to 25p per kWh. Widely available mid-market rates sit around 15p per kWh. The headline rates at the top of the market are conditional — typically requiring you to take your electricity supply from the same supplier, to have battery storage, to export at specific peak times, or to have bought your solar system from that supplier.
A worked example: a typical 3.5kWp system exporting around 1,500 kWh a year at 15p per kWh earns roughly £225 a year.
Because the price you pay to buy electricity is normally higher than any SEG rate, it never makes financial sense to export power you could have used yourself. Battery storage helps here — it lets you hold energy back and either use it later or export it when rates peak.
Who Is Eligible and How to Apply
You can apply for SEG if you have:
- An eligible technology up to 5MW capacity — solar PV, wind, hydro or anaerobic digestion (or micro-CHP under 50kW);
- An MCS certificate (or equivalent) confirming the system and its installation meet safety and performance standards;
- A smart meter capable of half-hourly readings, so your supplier can measure what you export.
You do not have to take SEG from the supplier who provides your electricity, although bundled rates are often higher. Gather your MCS certificate and your G98/G99 network connection letter before applying; processing typically takes several weeks.
One useful point on tax: most domestic SEG payments fall within the £1,000 trading allowance and are not taxed, but speak to a tax adviser if your combined supplementary income exceeds that.
Before applying, make sure the solar panels installed in your home are properly sized and specified for your home’s needs.
2. Zero-Rate (0%) VAT on Solar Panels
One of the most valuable forms of support for solar panels applies to every household in Great Britain, requires no application, and is means-tested against nothing at all.
There is 0% VAT charged on the installation of energy-saving materials, including solar PV panels, solar thermal panels and — since February 2024 — battery storage, whether fitted alongside panels or retrofitted on its own.
How Does Zero VAT Work?
The relief covers supply and installation together — equipment plus labour — for residential accommodation. On a typical domestic solar installation this is a saving of hundreds to well over a thousand pounds against the standard 20% rate, depending on system size.
The relief runs until 31 March 2027. From 1 April 2027 the rate is expected to revert to the reduced rate of 5% unless the government extends it. If you are weighing up timing, that date matters.
Alongside solar panels and battery storage, the relief also covers heat pumps, insulation, draught-proofing, wind turbines and several other energy-saving materials.
Who Is Eligible and How to Apply
There is no application process. Your installer applies the zero rate automatically when they quote and invoice you. Check your quote for the installation cost shows no VAT — if a quote shows 20% VAT on a domestic solar installation, query it.
3. Warm Homes Plan and the Warm Homes: Local Grant
The Warm Homes Plan, published on 21 January 2026, is the government’s successor programme to ECO4 and the Great British Insulation Scheme. It commits close to £15 billion to upgrading UK homes, and — unlike the Boiler Upgrade Scheme — it explicitly includes solar panels and battery storage, not just heating.
It splits into two routes.
Fully funded grants for lower-income households. In England this is delivered as the Warm Homes: Local Grant, administered by local councils. Eligible households can have measures installed at no cost, potentially including solar panels, insulation, low-carbon heating and battery storage. Typical eligibility is a combined household income under £36,000 and/or receipt of qualifying benefits, in a privately owned home with an EPC rating of D to G, in a participating council area. Thresholds and available measures vary by council.
How to apply: homeowners can use the government eligibility checker at gov.uk/apply-warm-homes-local-grant — enter your postcode, and if you qualify your details are passed to your local authority. If you rent, apply to your local authority directly. Either way, your council is the decision-maker.
Loans for everyone else. The Warm Homes Plan also provides for low and zero-interest loans available to homeowners regardless of income, covering solar PV, battery storage and heat pumps. The government has committed £2 billion to this consumer loan offer, which is being delivered in partnership with private-sector lenders.
Because the lending is delivered through commercial lenders, the amount you can borrow, the interest rate and the launch date vary by lender and by product. Check the current position on gov.uk before you plan around it, and compare offers from more than one lender.
Scotland, Wales and Northern Ireland run their own delivery arrangements; Scottish readers should see the Home Energy Scotland section below.
4. Home Energy Scotland (Scotland only)
If you live in Scotland, your first call should be Home Energy Scotland on 0808 808 2282 — a free advice service funded by the Scottish Government and delivered by Energy Saving Trust. It administers the Home Energy Scotland Grant and Loan.
Be clear about what this does and does not cover for solar, because it is widely misreported:
- Standalone solar PV and battery storage are not currently funded by the Home Energy Scotland Grant and Loan. They do not appear in the scheme’s funding table.
- Solar thermal (panels that heat water rather than generate electricity) attracts an interest-free loan of up to £5,000, with no grant element.
- Hybrid solar PV-T systems (which generate electricity and heat water in one panel) also attract an interest-free loan of up to £5,000, with no grant element.
- Wind turbines attract a loan of up to £2,500; hydro turbines up to £2,500.
Where the Scottish scheme is genuinely generous is heating. A heat pump attracts a grant of up to £7,500 — rising to £9,000 with the £1,500 rural and island uplift — plus an optional interest-free loan of up to £7,500 on top. Insulation attracts grants of up to 75% of cost, capped at £7,500. If you are planning solar as part of a wider home upgrade, this is worth knowing.
Conditions to be aware of: you must own and live in the property as your main residence, it must be an existing Scottish property, installers and products must be MCS-certified, funding is first-come first-served, and you must not start work before you receive a written funding offer — funding cannot be granted retrospectively.
Scottish households are still eligible for SEG and for 0% VAT, both of which operate across Great Britain.
5. Regional and Local Council Grants
Several councils run their own solar and energy efficiency schemes, often funded through central government allocations and often targeted at specific postcodes, EPC bands or income levels.
To find them, check your local council’s website directly. The amount available varies, eligibility criteria differ from council to council, and schemes open and close as funding rounds come and go — so check the details, and the closing date, before applying.
Solar panel grants and schemes that have closed
Several schemes that appear in older guides — and in a lot of advertising that is still circulating — are no longer open. If a company offers to sign you up to any of these, treat it as a red flag.
- Feed-in Tariff (FIT) — launched 2010, closed to new applicants in 2019. FIT paid for both generation and export, and generators already on it keep being paid under their original terms (typically 20 or 25 years). Its replacement for new installations is the Smart Export Guarantee. If you are on FIT, you can in some circumstances keep your generation payments while switching your export payments to SEG — worth checking, since FIT export sits around 5.5p against roughly 15p on a typical SEG tariff.
- Energy Company Obligation (ECO4) — ECO4 closed to new applications on 31 March 2026; suppliers may complete work already committed until 31 December 2026, but it is not a route new applicants can plan around. The nine-month extension was granted purely so obligated suppliers could finish commitments they had already made — no new delivery targets were set, and the government has confirmed there is no successor supplier obligation. The Warm Homes Plan is its replacement.
- Local Authority Flexible Eligibility (LA Flex) — this was a mechanism within ECO for councils to widen eligibility, not a scheme in its own right, and it winds down with ECO4. Councils’ current equivalent is the Warm Homes: Local Grant.
- The Green Deal — government funding was withdrawn in July 2015 and no new Green Deal plans are available. The Green Deal Finance Company continues to service existing plans, so if you already have one, your repayments are unaffected. Any offer of “Green Deal finance” for a new installation in 2026 should be treated with real caution.
- Domestic Renewable Heat Incentive (RHI) — launched 2014, closed to new applicants on 31 March 2022. Worth correcting a common misconception: the RHI never covered solar PV. It was a heat scheme covering solar thermal, biomass and heat pumps. Its successor for heating is the Boiler Upgrade Scheme in England and Wales, and the Home Energy Scotland Grant and Loan in Scotland — neither of which funds solar PV.
- Free Solar Panel Scheme (“rent-a-roof”) — companies installed panels free and kept the Feed-in Tariff income. These arrangements ended along with FIT in 2019. Beware modern imitations: a long lease on your roof can complicate a future sale or remortgage.
- Green Homes Grant — offered up to £10,000 for energy improvements; closed to new applications in March 2021.
Types of Solar Panel Grants
Support for solar panels falls into three broad categories.
National Solar Grants
These are schemes that operate across the country. The Smart Export Guarantee, 0% VAT and the Warm Homes Plan are the current examples. Anyone meeting the criteria can access them wherever they live in Great Britain — although note that Scotland, Wales and Northern Ireland run some delivery separately.
Regional Solar Grants
Regional schemes are exclusive to a particular part of the UK. The Home Energy Scotland Grant and Loan is the clearest example: a Scottish Government scheme available only to Scottish homeowners, with different measures and different amounts from anything in England or Wales.
Local Solar Grants
Local grants are controlled by authorities in a specific area. The Warm Homes: Local Grant is the main one — delivered council by council, with each authority setting some of its own criteria — alongside individual council schemes funded from their own budgets.
What You Need When Qualifying for Solar Panel Grants
Given the eligibility criteria set for these schemes, you will need to provide documents showing that you qualify.
Credit Score Requirements
Sometimes you will be asked for your credit standing, particularly where a scheme includes a loan element — the Home Energy Scotland interest-free loan, for example, involves affordability and credit checks, and carries a 1.5% administration fee capped at £150.
Borrowers with higher credit standing have more chance of getting better repayment terms and rates if you are financing privately instead.
Income Qualifications
Household income is the single biggest factor in whether you qualify for a fully funded scheme. The Warm Homes: Local Grant typically works to a combined household income threshold of around £36,000, or receipt of qualifying benefits.
Prepare income or benefit statements to show you meet the criteria. Note that Home Energy Scotland funding is not means-tested — you do not need to be on benefits to apply.
Home Ownership Requirements
Most schemes are aimed at owner-occupiers. Home Energy Scotland, for example, requires that you own the home you live in and that it is your only or main private residence.
If you rent, you will usually need your landlord’s agreement to the improvements and their operations and maintenance terms, and in some cases the landlord must apply rather than you. Renters applying for the Warm Homes: Local Grant go through their local authority directly. Proof of ownership or tenancy will be required either way.
How to Apply for Solar Panel Grants
Applying for solar panel grants will help you benefit from renewable energy and cut costs from your energy bills.
Locating Available Grants
Start by identifying which schemes you can realistically access:
- Everyone: 0% VAT (automatic) and the Smart Export Guarantee (apply once your system is installed and MCS-certified).
- England, lower income: check gov.uk/apply-warm-homes-local-grant, or contact your council.
- Scotland: call Home Energy Scotland on 0808 808 2282 for a free eligibility check across everything you might qualify for.
- Anywhere: check your local council’s website for area-specific schemes.
In researching grants, examine the eligibility criteria and what is actually funded. Solar PV is funded in some places and not others — Scotland’s scheme, for example, funds solar thermal and hybrid PV-T but not standalone solar PV.
Submitting Applications
Once you have chosen a scheme, follow its own process. For fully funded schemes an assessor typically conducts a home assessment to confirm the property fits the programme.
Two rules apply almost everywhere and are worth repeating: get at least three quotes from MCS-certified installers, and do not start work before you have written confirmation of funding. Funding is very rarely granted retrospectively.
Documenting Your Eligibility
Prepare the documents that prove your eligibility — benefit award letters, income evidence, your EPC, proof of ownership, and itemised installer quotes. For SEG you will additionally need your MCS certificate and G98/G99 connection letter.
Benefits of Solar Panel Grants
With solar panel grants, putting up solar panels and pushing through with energy-efficiency projects has become MORE ACCESSIBLE for a broader range of people.
Through this, households can maximise the use of renewable energy and take advantage of the savings, tax, and environmental benefits.
Cost Savings
Households can reduce the upfront cost of solar panels — through 0% VAT for everyone, and through fully funded installations for those who qualify on income grounds.
Where the upfront cost is not reduced, you can earn from the excess energy you export to the grid and recoup your investment over time.
Low and zero-interest loans are also part of the picture — through Home Energy Scotland in Scotland, and through the Warm Homes Plan lending route.
On top of it all, you benefit from lower energy bills and modest maintenance costs when making the switch to solar panels.
Tax Benefits
Businesses investing in solar may be able to claim capital allowances against the cost.
Tax treatment depends entirely on your own circumstances, and reliefs and thresholds change at every fiscal event — speak to your accountant before you factor any tax saving into your figures.
Environmental Benefits
By migrating to solar power, homeowners won’t only reduce their rising energy bills, but they can also reduce carbon emissions and greenhouse gases in the environment.
It also allows more homeowners to adopt a renewable source of energy through solar panels and other solar-powered products.
Solar power is pollution-free, promotes better air and water quality, independence from fossil fuels, and promotes low energy bills.
Frequently Asked Questions (FAQs)
Let’s try answering more of your questions before wrapping things up!
Is there a UK-wide solar panel grant I can apply for?
Not in the sense most people mean. There is no scheme that gives every UK household money off solar panels. What you get automatically is 0% VAT until 31 March 2027, and the ability to be paid for what you export via the Smart Export Guarantee. Beyond that, funded installations are income-tested and delivered locally.
What is the Green Homes Grant?
The Green Homes Grant offered up to £10,000 for energy improvements. It closed to new applications in March 2021. The current successor programme is the Warm Homes Plan.
Can You Still Get Free Solar Panels?
Sometimes — but only through a genuine income-tested government scheme. In England, the Warm Homes: Local Grant can fund solar panels in full for eligible lower-income households in EPC D-G properties. Scotland, Wales and Northern Ireland have their own arrangements.
Be sceptical of anything else. The old “free solar panels” model — where a company installed panels free and kept the Feed-in Tariff income from your roof — ended with FIT in 2019. Any modern offer of free panels that involves signing a long lease on your roof deserves careful reading and, ideally, a solicitor’s eye. Check what happens if you sell the property.
Do I have to be on benefits to get help in Scotland?
No. The Home Energy Scotland Grant and Loan is not means-tested — you do not need to be receiving benefits to apply. You do need to own and live in the property. Note, though, that it does not currently fund standalone solar PV or battery storage.
Can I get the Boiler Upgrade Scheme for solar panels?
No, on two counts. The Boiler Upgrade Scheme funds heat pumps and biomass boilers only, not solar PV — and it covers England and Wales only, so Scottish residents are not eligible for it at all.
Conclusion
That’s a wrap! We hope this guide gave you a clear and honest picture of the solar panel grants available in the UK in 2026 — and, just as importantly, which ones have closed.
The short version: claim your 0% VAT while it lasts, sign up to the Smart Export Guarantee once you are installed, check the Warm Homes: Local Grant if you are in England and on a lower income, and call Home Energy Scotland if you are north of the border. Get three quotes from MCS-certified installers, and never start work before your funding is confirmed in writing.
Schemes change often. Before you commit, check the current position on gov.uk, ofgem.gov.uk or homeenergyscotland.org rather than relying on any single guide — including this one.
Become a qualified gas engineer
Our New Entrant Gas Engineer courses take you from beginner to Gas Safe registered, with hands-on training and the ACS qualifications employers look for.
Blog categories
Keep up to date with the latest news from
Skills training group.