Solar Panel Grants Explained: What Funding Is Available in the UK?

Solar has become increasingly popular in recent years as energy prices continue to rise, and homeowners look for more sustainable ways to power their homes.

However, one question we get all the time is, are there grants available and what ones do we qualify for?

Yes, there are several solar panel grants available in the UK, however they’re not quite as straightforward as many people think.

This guide will cover everything you need to know about solar panel grants and solar panel funding in 2026.

What Are Solar Panel Grants?

Solar panel grants are a form of government incentive that aim to make installing solar panels more affordable. Grants are usually gifted, meaning you don’t have to repay them like a loan.

In the UK, there isn’t a single solar panel grant that everyone can apply for, but instead, there are a number of government-backed initiatives, local authority grants, and funding opportunities that we will breakdown below.

What Solar Panel Funding Is Available?

The following are the main sources of solar panel funding you can access in the UK:

1. ECO4 (Energy Company Obligation)

Available to those who qualify for the energy company obligation scheme.

What it covers: Solar panel grants under ECO4 can cover up to 100% of your installation costs. This scheme may also cover other energy-efficient improvements to your home, such as insulation or heating systems.

How it works: Solar panels under the ECO scheme are funded by your energy supplier. The UK Government created this programme to reduce domestic energy use and carbon emissions.

This solar panel funding scheme is the most common grant available to homeowners in the UK.

2. Warm Homes Plan (Local Authority Grants)

Available to homeowners who qualify for local authority funding, usually including those on low incomes or households with a poor EPC rating.

What it covers: Typically covers free solar panel install, as well as other energy efficiency measures for your home. Course allowances can exceed £10,000.

How it works: Through the Warm Homes Plan, whole house upgrades are funded, which can often include solar panels.

3. 0% VAT Solar Panels

0% VAT applies to all homeowners installing solar panels.

What it covers: Can save £1,000 – £2,000 on installation costs depending on the size of your solar system.

How it works: As of 2022, the UK Government makes homes exempt from VAT when installing solar panels. The scheme is set to be in place until at least 2027.

4. Smart Export Guarantee (SEG)

Available to all homes with MCS certified solar panel installations.

What it covers: Rather than helping with the initial cost of solar panels, the SEG will pay you for every kilowatt of excess energy your solar panels export back to the grid.

How it works: Every energy supplier in the UK is required to pay their customers for solar energy exported using the SEG scheme. The amount you’ll receive varies from supplier to supplier.

Although not a direct solar panel grant, the Smart Export Guarantee allows you to earn money from your solar panels. Solar Export Guarantees effectively give you a cash bonus on top of your solar panel savings.

5. Local & Group Buying Schemes

Some councils and regions offer additional solar panel funding options, including:

Group-buying schemes like Solar Together
Local authority grants or “LA Flex” eligibility
Regional funding programmes depending on location

These can significantly reduce installation costs, even if you don’t qualify for national grants.

Who Can Get Solar Panel Grants?

Typically solar panel grants are awarded to:

Households on low incomes
Those receiving certain government benefits
Households with an EPC rating of D or lower
Properties in areas covered by local schemes

In some cases, even households not on benefits may qualify through local authority flexibility schemes.

How Much Can You Save With Solar Panel Grants?

Solar panel grants can save you money both now and in the future. Here’s how:

Reduce your energy bills by up to 80% or more
Save thousands of pounds on solar panel installation
Earn money on your electricity with the Smart Export Guarantee
Reduce the cost of installing solar panels with 0% VAT

Solar panels are a great money saving option in the long-term, especially when you add in your initial grants.

Can I Get Solar Panels for Free?

“Free solar panels” sounds too good to be true, and in many cases, it is.

There’s no overarching grant that provides homeowners with free solar panels. However, some installations can be fully funded by grants like ECO4 or the Warm Homes Plan.

If you aren’t eligible for these grants, your solar panels won’t be completely free, however, there are still many ways you can save money when installing solar panels.