Funding
Solar panel grants in the UK: what exists.
What's available, what isn't, and what will save you money.
The short version
Most homeowners will not get free solar panels.
There is no general government grant that pays for solar panels on most UK homes. That is the straightforward answer that many websites bury under 2,000 words of filler.
The main financial help available to the majority of homeowners is 0% VAT on solar installations (until March 2027) and the Smart Export Guarantee, which pays you for surplus electricity you send to the grid.
If you have a low household income or receive qualifying benefits, you may be eligible for ECO4 (closing 31 December 2026) or, in England, the Warm Homes: Local Grant through your council. Both can fund solar in some cases, as part of a wider energy efficiency package. For everyone else, the best route is a fair price from a reputable installer while the VAT window is open.
The government also launched the Warm Homes Loan Scheme on 27 October 2026. These are loans rather than grants, so anything borrowed is repaid. Our guide to the Warm Homes Loan for solar panels explains how it works.
What exists
What is available.
0% VAT until March 2027
The biggest saving available to every homeowner. Residential solar and battery installations carry zero VAT until 31 March 2027. On a £10,000 system, that saves you £2,000 compared to the standard 20% rate. No application needed. It applies automatically.
Smart Export Guarantee (SEG)
Energy suppliers with over 150,000 customers must offer you a tariff for surplus electricity you export to the grid. Rates vary by supplier and tariff type, but you earn for every kWh you do not use. You need an MCS-certified installation to register.
ECO4 scheme
The Energy Company Obligation (ECO4) funds energy efficiency improvements for low-income households. It closes on 31 December 2026. Solar is funded only in limited cases, as part of a wider package. Eligibility is assessed case by case.
Green mortgage incentives
Several UK lenders, including Nationwide and Barclays, offer lower mortgage rates or cashback for energy-efficient homes. Installing solar panels can improve your EPC rating and unlock these deals. See our green mortgage guide for current offers.
Reality check
What about "free solar panels"?
The rent-a-roof schemes that offered free panels disappeared when the Feed-in Tariff closed to new applicants in 2019. Under those deals, a company installed panels on your roof for free, kept the FiT income, and you got cheaper electricity during daylight hours. They no longer exist for new customers.
Current adverts promoting "free solar panels" are almost always one of three things:
Finance deals marketed as "no upfront cost"
You still pay for the system. The cost is spread over monthly payments, often at interest. The panels are not free.
ECO4 referral companies
These target low-income households who qualify for ECO4 funding. If you qualify, the funding is real, but the company advertising "free panels" is typically a lead generator, not the installer.
Scams
Some adverts are fraudulent. They collect personal data, take deposits, and disappear. Read our guide on how to avoid solar panel scams.
ECO4
ECO4 and Warm Homes: do you qualify?
The ECO4 scheme is funded by large energy suppliers and administered by Ofgem. It covers energy efficiency measures for households that meet specific income or benefit criteria.
You may qualify if:
- Your household income is low (your council sets the criteria), or
- You receive a qualifying benefit: Universal Credit, Pension Credit, Child Tax Credit, Working Tax Credit, Income Support, Income-based Jobseeker's Allowance, or Income-related Employment and Support Allowance
If you qualify, the scheme can partially or fully fund energy efficiency improvements including, in some cases, solar panels. The scope depends on your property's current EPC rating and the measures that will make the biggest impact.
ECO4 closes on 31 December 2026. In England, the Warm Homes: Local Grant is run by councils until March 2028 for low-income homes rated EPC D to G. Whether it covers solar depends on your council's plan. In Scotland, contact Home Energy Scotland. In Wales, contact Nest. Scheme details checked October 2026.
If you do not qualify, the best financial route is to install while the 0% VAT window is open, choose a system sized to your actual usage, and register for the Smart Export Guarantee. That combination delivers real savings without relying on grants that do not apply to you.
The smart approach
The real way to save on solar.
Instead of chasing grants that do not exist for most households, focus on the things that reduce your cost and maximise your return:
Size the system to your usage
A system matched to your consumption pattern delivers the highest self-use ratio. Oversizing wastes money. Undersizing leaves savings on the table.
Add a battery on a time-of-use tariff
A battery stores daytime generation for evening use. Pair it with a time-of-use tariff to charge from the grid at off-peak rates too.
Register for the SEG
Once your MCS-certified system is installed, register with your energy supplier. You earn for every kWh of surplus electricity you export to the grid.
Install before the VAT returns
0% VAT on residential solar and battery installations ends 31 March 2027. That is a saving of roughly £1,000 to £2,500 on a typical system. No extension has been confirmed.
For a full breakdown of whether solar is worth it for your household, read our guide: Is solar worth it in 2026?
FAQ
Common questions about solar grants and funding.
Can I get free solar panels in the UK?
For most homeowners, no. The rent-a-roof schemes that offered free panels in exchange for the Feed-in Tariff ended years ago. Current 'free solar' adverts are usually ECO4 referrals (for low-income households), finance deals marketed as no upfront cost but with monthly payments, or outright scams. If you have a low household income or receive qualifying benefits, you may qualify for ECO4 (closing 31 December 2026) or, in England, the Warm Homes: Local Grant.
What solar panel grants are available in 2026?
There is no general government grant for solar panels for most UK homeowners. The main financial support is 0% VAT on residential installations (until March 2027), the Smart Export Guarantee (earning from surplus electricity), and, for eligible low-income households, ECO4 (closing 31 December 2026) and the Warm Homes: Local Grant in England. In Scotland, see Home Energy Scotland. In Wales, see Nest. Some lenders also offer green mortgage incentives for homes with solar.
What is the ECO4 scheme?
ECO4 is the Energy Company Obligation, a government scheme that requires large energy suppliers to fund energy efficiency improvements for low-income and vulnerable households. It can cover insulation, heating upgrades, and in some cases solar panels. It closes on 31 December 2026, so supplier funding is limited. Solar is funded only in limited cases, usually alongside other measures. Eligibility is based on household income and benefits.
Do I qualify for ECO4?
You may qualify through your council's ECO4 Flex route if your household income is low, or if you receive qualifying benefits such as Universal Credit, Pension Credit, Child Tax Credit, Working Tax Credit, Income Support, Income-based Jobseeker's Allowance, or Income-related Employment and Support Allowance. Your property also needs to have an EPC rating of D or below in most cases.
Is the 0% VAT on solar panels ending?
The current 0% VAT relief on residential solar and battery installations is set to end on 31 March 2027. After that date, the standard 20% VAT rate is expected to return unless the government announces an extension. As of August 2026, no extension has been confirmed.
What is the Smart Export Guarantee?
The SEG requires licensed electricity suppliers with over 150,000 customers to offer a tariff for surplus electricity exported from small-scale generators like solar panels. You need an MCS-certified installation to register. Rates vary by supplier but you earn for every kilowatt-hour you export to the grid.
Are there government loans for solar panels in the UK?
Yes. The government's Warm Homes Loan Scheme, part of the Warm Homes Plan, launched on 27 October 2026. Approved lenders offer no- and low-interest loans for solar panels, batteries and other clean energy technology to households across the UK, and the installer must be MCS-certified. A loan isn't a grant: anything borrowed is repaid. Scotland also has the Home Energy Scotland loan scheme. Our Warm Homes Loan guide explains how the scheme works for solar panels.
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0% VAT on solar installs completed by 31 March 2027
