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Solar Panel Grants and Funding UK 2026
Solar grants in the UK are genuinely available, but the landscape is confusing. Different schemes cover different situations, and some have changed significantly in the last year. Here's a clear breakdown of what exists in 2026, who qualifies, and how to access each one.
VAT Zero-Rating (Applies to Everyone)
Before getting into means-tested grants, it's worth emphasising that zero-rate VAT on residential solar applies to all UK homeowners — not just those on benefits. Since April 2022, you pay no VAT on the supply and installation of solar panels, batteries, and associated equipment on a home.
This saves you the full 20% that was previously charged. On a £7,000 system, that's £1,400 effectively handed back. Every quote should reflect this automatically. If yours doesn't, query it immediately.
ECO4 (Energy Company Obligation)
ECO4 is the flagship scheme for lower-income and vulnerable households. Energy suppliers are legally required to fund energy efficiency improvements, and solar panels are eligible measures under ECO4.
Who qualifies: Households receiving means-tested benefits (Universal Credit, Pension Credit, Child Tax Credit, Working Tax Credit, Income Support, income-based JSA or ESA, or Housing Benefit). Your property must also have a low EPC rating (typically D or below for heating measures, though solar eligibility can vary by local area flex rules).
What you can get: Potentially a fully funded solar installation at no cost to you. The exact scope depends on the whole-house assessment — installers may bundle solar with insulation measures.
How to apply: Contact your energy supplier directly, or use a government-approved ECO4 broker. You can also check via the Simple Energy Advice service (gov.uk). Be cautious of cold-callers claiming to offer free solar under ECO4 — always verify through official channels.
Deadline: ECO4 has been extended to 31 December 2026. There will be no ECO5 — the government has confirmed the supplier obligation model ends with ECO4. The Warm Homes Plan is the successor.
ECO4 Cold-Calling Scams
Legitimate ECO4 installers do not cold-call you to offer free solar on the spot. If someone knocks on your door or calls claiming you qualify for free panels, ask for their MCS certificate number, verify it on the MCS website, and never sign anything under pressure. Rogue operators have exploited ECO4 branding to sign homeowners up to deals that are not actually government-funded.
Great British Insulation Scheme (GBIS) — CLOSED
GBIS closed on 31 March 2026 and was not extended. It primarily targeted insulation measures; solar panels could only be funded as a secondary measure alongside insulation. GBIS is no longer accepting applications.
The successor is the Warm Homes: Local Grant, which covers insulation and solar panels for households earning under £36,000 with an EPC of D–G. Apply at gov.uk/apply-warm-homes-local-grant or call 0800 098 7950.
See the full GBIS explainer for the complete history and what comes next.
Home Upgrade Grant (HUG2) — CLOSED
HUG2 has closed and has been replaced by the Warm Homes: Local Grant. HUG2 was targeted at off-gas-grid homes in England with household incomes below £36,000. That eligibility group is now served by the Warm Homes: Local Grant, which also covers gas-connected homes and has a broader range of measures.
If you were hoping to access HUG2, apply for the Warm Homes: Local Grant instead at gov.uk/apply-warm-homes-local-grant. See the HUG explainer for the full history.
Boiler Upgrade Scheme (BUS)
The BUS provides grants of £7,500 for air source heat pumps and £7,500 for ground source heat pumps. It does not directly fund solar panels, but it's worth mentioning because solar and heat pumps work extremely well together — solar generation can power a heat pump during daylight hours, significantly reducing running costs.
If you're considering both solar and a heat pump, the BUS grant for the heat pump is substantial and worth investigating alongside your solar plans.
Smart Export Guarantee (SEG)
SEG is not a grant but deserves a mention. It legally requires energy suppliers with more than 150,000 customers to offer you a payment for electricity you export back to the grid. Rates vary by supplier and tariff — basic fixed SEG rates run 3.3–5.2p/kWh, with the best fixed tariffs at around 15p/kWh. Time-of-use tariffs like Octopus Flux can deliver higher peak export rates (check data/verified-rates.json for current figures).
You need an MCS-certified installation to access SEG. Make sure your installer is MCS-certified, and register with your energy supplier after install.
LONGi Hi-MO X6 450W
£85450
23
1722 x 1134 x 30
21.3
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Grant availability varies by region — see our local guides for area-specific schemes.
Scotland: Warmer Homes Scotland and Home Energy Scotland Loans
Warmer Homes Scotland is Scotland's equivalent of ECO4, providing free energy efficiency upgrades (including solar in some cases) to households in or at risk of fuel poverty.
Home Energy Scotland Loans offer interest-free loans of up to £6,000 for solar PV specifically (higher limits apply for heat pumps and combined packages). Unlike a bank loan, there is no interest — you simply repay the amount borrowed. This is a good option for Scottish homeowners who don't qualify for grants.
Note: Home Energy Scotland solar grants were discontinued in June 2024. The loan scheme remains. Always check with HES directly on 0808 808 2282 for current availability.
How to access: Through Home Energy Scotland (homeenergyscotland.org).
JA Solar JAM54D41 450W N-type TOPCon
£82450
22.8
1722 x 1134 x 30
21.5
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Wales: Warm Homes Programme
Wales has consolidated several schemes into the Warm Homes Programme, which funds energy efficiency measures including solar for lower-income households. Eligibility criteria and available funding change periodically — check gov.wales or the Nest scheme website for the most current position.
What If You Don't Qualify for Any Grant?
Most homeowners will not qualify for means-tested grants, but you still benefit from zero-rate VAT. After that, the main options are paying outright (most cost-effective long-term) or using solar panel finance to spread the cost.
It's also worth checking what your system will cost and whether the payback period makes sense for your situation before committing.
Which Grants Can I Get? Eligibility by Situation
The table below summarises the main schemes by household type. Use it as a starting point — individual schemes have additional rules and local variations.
Check whether you may qualify for funding with the eligibility checker below.
Grant and scheme eligibility
Check which UK solar grants and schemes you may be eligible for. This is a quick guide — always check the official scheme for full criteria.
ECO4 Scheme (Extended)
The Energy Company Obligation 4 (ECO4) scheme requires large energy suppliers to fund energy efficiency improvements for low-income and vulnerable households. Eligible measures include solar panels, heat pumps, insulation and heating upgrades. Private renters need landlord consent. The scheme was extended by 9 months beyond its original March 2026 end date.
Warm Homes Plan (National Framework)
Up to £15The Warm Homes Plan is the government's flagship energy efficiency programme, published January 2026. It commits £15 billion to upgrade up to 5 million homes by 2030 and aims to lift 1 million families out of fuel poverty. The plan has three pillars: fully funded upgrades for low-income homes (via the Warm Homes: Local Grant), government-backed 0% interest loans for all homeowners (the Consumer Loan Scheme, launching April 2027), and renter protections. Eligible measures include solar panels, batteries, heat pumps, insulation and smart controls.
Boiler Upgrade Scheme (BUS)
Up to £7,500Government grant of £7,500 towards installing an air source heat pump (ASHP) or ground source heat pump (GSHP) as a replacement for a fossil fuel boiler. New for 2025-26: £2,500 grants for air-to-air heat pumps and heat batteries. Applied for by your MCS certified installer, not directly by homeowners. Relevant to solar owners as solar combined with a heat pump creates a highly efficient low-carbon heating and energy system.
Zero-Rate VAT on Solar Installations
Since April 2022, solar panel installations, battery storage systems, heat pumps and other qualifying energy-saving materials installed in residential properties in Great Britain are subject to 0% VAT (down from 5%, and originally reduced from 20%). This is not a grant but a government tax relief that automatically applies to all eligible installations. Northern Ireland has different rules under the Windsor Framework.
Smart Export Guarantee (SEG)
Not a grant but guaranteed income — energy suppliers must pay you for electricity you export to the grid. Requires MCS-certified installation.
Not Sure If You Qualify?
The quickest way to check is your local council's energy efficiency team — they can tell you which schemes are active in your area and whether you're eligible.
Check Your EPC Before Applying
Many grant schemes require your home to have a specific EPC rating. You can check your current EPC for free on the government's EPC register (find-energy-certificate.service.gov.uk). If your rating is higher than required (e.g., C or B), you may not qualify for some schemes even if your income would otherwise meet the criteria.
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