What Grants Are Available for Solar Panel Installation in the UK?

Thinking about going solar? If you want to install solar panels in the UK, it’s useful to know what kind of grants and incentives might be available. Especially as it could make a real difference to your decision. This guide will help give you an understanding of some of the grants and incentives currently available for solar panel installation in the UK, along with who they are designed for, and what you might need to consider.

There are solar panel installation grants available in the UK, but most are not targeted to provide a single, universal grant available to all homeowners. Most schemes that provide substantial financial support are targeted at low-income households or those in fuel poverty. If you fall outside these criteria, you may not receive a free system.

However, you can still benefit from incentives that reduce both the upfront and the ongoing running costs of a solar panel installation.

Launched in 2025, the Warm Homes: Local Grant is one of the most significant funding routes currently available. It is delivered through local councils in England and is aimed at low-income households living in privately owned homes with an EPC rating of D or below.

To be eligible, your household income must generally be £36,000 a year or less, though you may still qualify if you live in a designated postcode area or someone in your household is getting certain benefits.

Eligible households can receive up to £15,000 towards energy efficiency improvements including solar panels, and a further separate grant of up to £15,000 towards a low-carbon heating solution such as an air source heat pump. That is potentially up to £30,000 in total funding towards upgrading your home.

If approved, your local authority should get in touch within 10 working days to speak about your application and to get any further information. Afterwards, a home survey will be arranged.

Want to know if you are eligible? Check your eligibility and apply here.

ECO4, the fourth phase of the Energy Company Obligation, was recently extended until 31st December 2026, which means it is still open at the time of writing. It is a UK government-backed efficiency program designed to reduce fuel poverty and carbon emissions by funding home upgrades for low-income and vulnerable households. It supports improvements like insulation, air source heat pumps, and solar panel installations.

The scheme requires larger energy suppliers to fund energy efficiency improvements, which can include solar panels, for low-income or vulnerable households. To be eligible, your household income must be under £31,000 and your property must have an EPC rating of E, F, or G. You also need to be receiving a qualifying benefit, such as Universal Credit, Income Support, Housing Benefit, Working Tax Credit, or Pension Credit.

The Warm Homes Plan is the government’s flagship long-term programme for upgrading UK homes, described as the largest energy efficiency initiative in British history. Backed by up to £15 billion, it aims to upgrade up to five million homes by 2030. It aims to make homes cheaper to run, more energy efficient, and less reliant on fossil fuels.

The Warm Homes Plan is designed to support all types of households and not just those on low incomes.

Including solar panel and battery storage installations, low-carbon heating systems like heat pumps, and insulation alongside wider energy efficiency upgrades.

For homeowners in particular, this can mean grant support or access to low-cost finance to cover upfront installation costs, which in turn makes technologies like solar more accessible. For lower-income households, the plan delivers direct funding for upgrades that can significantly reduce energy bills, while wider investment supports large-scale improvements across communities and housing stock .

The scheme also includes the Warm Homes: Local Grant detailed above, as well as a Warm Homes Fund, which will offer low and zero-interest loans to homeowners regardless of income. This loan element is expected to cover the cost of solar panels, batteries, heat pumps, and insulation, and will be particularly important for households who do not qualify for means-tested grants but still want to spread the cost of going solar.

At RT Solar, we have clear guidance on available funding, grants, and finance options here,

If you are not eligible for means-tested grants, Solar Together is worth exploring. It is a group-buying scheme that operates across a number of UK local authority areas. Residents and small businesses register collectively, and solar installers then bid for the contract through a reverse auction. The competitive nature of this process typically results in savings of between 30 and 35 per cent compared to an average individual quote.

The scheme is free to register for, and there is no obligation to proceed once you receive a personalised recommendation. Solar Together is not available everywhere, so it is worth checking whether your local council is participating. To date, over 34,000 households across the UK have used the scheme to access solar panels at a reduced cost.

One incentive available to all homeowners, regardless of income, is the removal of VAT on residential solar panel installations. Since April 2022, solar panels, batteries, and qualifying energy-saving materials have been subject to 0% VAT rather than the standard 20%, and from February 2024 this was extended to include standalone battery installations as well.

This relief is confirmed until 31 March 2027. On a typical 4kW solar system and battery, the saving from zero VAT alone can exceed £2,850 compared to what the same installation would cost at the standard rate. From April 2027, VAT is scheduled to return to 5%.

Your installer applies the 0% rate automatically. There is no separate application to make.

The Smart Export Guarantee is not a grant, but instead is an ongoing financial benefit for solar panel owners. Under the SEG, licensed energy suppliers are required to pay you for surplus electricity your solar system exports back to the National Grid. The scheme has no end date and is open to any homeowner with an eligible solar installation up to a system capacity of 5MW.

Rates can vary between suppliers and tariff types, so it is worth comparing what is available before committing to a contract. Based on current market data, SEG payments could earn a typical household between £80 and £170 per year on top of the savings already made on electricity bills, though some tariffs linked to time-of-use pricing or battery storage offer considerably higher returns.

To qualify, your system must be installed by an MCS-certified installer and you will need a smart meter capable of recording export readings every 30 minutes. At RT Solar, we are MCS certified, which means every installation we complete is eligible for SEG registration from the outset.

Explore professional solar panel installation with RT Solar and see how much your home could save.

Setting grants aside for a moment, it is worth understanding what solar panels could realistically mean for your household energy bills.

The UK government’s own Clean Energy campaign states that solar panels can save the average home over £500 per year. A three-bedroom home with a 4.5kW system and battery could see total annual savings, including SEG payments, of around £950. A four-bedroom home with a 6kW system could save in the region of £1,189 per year, on a system costing around £13,000 before grants or VAT savings are applied.

Pairing solar panels with battery storage increases how much of the electricity you generate that you actually use, reducing grid reliance and improving the overall return on your investment. For most homes, the combination of solar and battery is where the strongest long-term savings are found.

Discover how solar battery storage helps you use more of your own energy and reduce reliance on the grid.

Setting grants aside for a moment, it is worth understanding what solar panels could realistically mean for your household energy bills.

The UK government’s own Clean Energy campaign states that solar panels can save the average home over £500 per year. A three-bedroom home with a 4.5kW system and battery could see total annual savings, including SEG payments, of around £950. A four-bedroom home with a 6kW system could save in the region of £1,189 per year, on a system costing around £13,000 before grants or VAT savings are applied.

Pairing solar panels with battery storage increases how much of the electricity you generate that you actually use, reducing grid reliance and improving the overall return on your investment. For most homes, the combination of solar and battery is where the strongest long-term savings are found.

Discover how solar battery storage helps you use more of your own energy and reduce reliance on the grid.

If your income sits above means-tested thresholds, going solar can still be financially worthwhile. When you factor in other benefits such as the 0% VAT saving, ongoing SEG payments, and the reduction in your electricity bills, there is still a strong financial case for solar panel installation.