Solar panel grants and funding Guide in the UK
Switching to green, renewable energy has never been more affordable thanks to solar panel grants. This guide explains who may qualify, the main funding options, potential savings, and the latest updates.
Are you eligible for a solar panel grant?
Eligibility depends on several factors:
• Household income and energy costs
• Property type (homeowner, tenant, landlord, or social housing)
• Energy Performance Certificate (EPC) rating
• Whether the applicant receives certain benefits or is considered energy-poor
Most schemes require proof of residence and an energy assessment before approval.
Main Solar Panel Grants in the UK
| Scheme | Region | What It Covers | Notes |
|---|---|---|---|
| ECO4 (Energy Company Obligation Phase 4) | England, Wales, Scotland | Solar panels, insulation, and heating upgrades for low-income households | Income under £31,000 and EPC rating of D or above apply |
| Solar Together | Multiple regions in England | Group-buying program offering 30% - 40% lower solar panel costs | Run by local councils, operates in various UK regions |
| Warm Homes Scheme | England | Up to £15,000 each to cover energy-efficiency improvements such as solar panel installations | For eligible households |
| Nest Scheme | Wales | A home energy improvement package includes solar panels, insulation, and heating system | Focus on low-income and energy-poor households |
How Much Can Solar Panels Save?
Savings depend on electricity usage, roof orientation, system size, and battery storage:
• Average UK household saves £300 – £600 per year on bills
• With battery storage, savings can increase significantly
• Payback period is typically 6 – 10 years when grants or loans are used
Latest Solar News
• ECO4 funding remains open, prioritising low-income households and energy-inefficient homes.
• Most new homes in England to be fitted with solar panels by 2027, according to Labour government plans. If approved, the plans would force most housebuilders to add solar panels, and just 1 per cent would have none.
Alternative Solar Financing Options
If you don’t qualify for any grants, you have several other options to help with solar panel costs:
• Zero per cent VAT - One of the Government’s green incentives involves applying a 0 per cent VAT rate to some energy-saving materials and equipment, including solar panels, until the 31st of March 2027. This applies to the supply and installation of solar panels in England, Scotland, and Wales.
• Green mortgages - Green mortgages are specialised home loans that offer homebuyers or homeowners financial incentives to purchase, build, or renovate homes that meet certain environmental and energy-efficiency standards. These incentives can take various forms, such as cash-back offers, lower interest rates, or higher borrowing amounts.
• Solar subscription plans – A solar subscription plan allows you to avoid the upfront cost of installing solar panels while still enjoying the benefits of solar energy. Installers offering subscription plans include:
Sunsave's standard subscription starts at £69 per month and includes a 20-year warranty, battery replacement, and a fixed monthly fee.
Effective Home's Energy Shield subscription includes maintenance costs in the monthly fee, and you'll enjoy a fixed energy rate for 5 years. It's worth noting that the plan has a £99 onboarding fee.
Otovo offers a 20-year warranty, and the monthly fee includes maintenance costs.
Solar Panel Grants FAQ
Q1: Can tenants apply for solar panel grants?
A: Yes, but only with landlord or housing association approval. Some schemes are landlord-specific.
Q2: Can solar panels be combined with other home upgrades?
A: Yes, many schemes allow insulation, heat pumps, and solar to be funded together.
Q3: How long do solar panels last?
A: Most panels last 25 years or more, often with long-term warranties from installers.
Q4: Can pensioners get a grant for solar panels?
A: Yes, pensioners can qualify for solar panel grants if they meet income and energy-efficiency criteria.
Summary
The UK offers a wide range of solar panel grants and financing schemes across England, Scotland, Wales, and Northern Ireland. By making use of these programmes, households and landlords can lower installation costs and enjoy long-term savings on energy bills.