Solar panel grants UK: How to apply for government funding schemes and what incentives are available?
Solar panel grants UK: How to apply for government funding schemes and what incentives are available?
Jeff MeyerFri, May 1, 2026 at 8:26 AM UTC
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If you are considering installing solar panels at your home, the good news is that there is financial help available (iStock/The Independent)
The cost of solar panels has fallen in recent years, but a rooftop system is still a major upfront investment, which leaves many homeowners asking themselves, ‘Are solar panels worth it?’ For many homeowners, that means the decision does not start with which panels to buy, but whether there is any grant, loan or funding scheme that can reduce the cost and improve the payback.
In 2026, there is still no single UK-wide solar panel grant available to every household. Instead, support is spread across targeted schemes, local authority programmes, group-buying initiatives, tax relief and emerging green finance options. The most generous help is generally aimed at low-income households, homes with poor energy efficiency or people living in areas covered by specific local schemes.
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The funding landscape has also changed. The government’s Warm Homes Plan, published in 2026, shifts the focus away from a universal solar subsidy and towards a wider package of home energy upgrades. This includes grant-backed support for some households and low- or zero-interest finance to help homeowners spread the cost of measures such as solar panels and battery storage.
The Energy Company Obligation scheme, known as ECO4, has also been extended to 31 December 2026, although it is now part of a broader transition towards Warm Homes funding. Eligible households may still be able to access fully funded or heavily subsidised improvements, but availability depends on your circumstances, your property and local delivery.
There are also other ways to reduce the cost of solar. These include 0 per cent VAT on solar panel and battery installations, Solar Together or Switch Together group-buying schemes in some council areas, and Smart Export Guarantee payments for electricity you export back to the grid. Before committing, it is worth comparing the best solar panels on the market, checking installer accreditations and being cautious of unsolicited “free solar panel” offers.
This guide explains the main solar panel grants, loans and funding options currently available in the UK, who qualifies, how much support you may be able to get and what alternatives are available if you are not eligible for a grant.
Is the UK’s Warm Homes Plan worth applying for?
The UK's Warm Homes Plan is closer to a “bundle” (or framework) of programmes than a single, one-size-fits-all grant with one application form.
The government’s Warm Homes Plan sets the overall direction and funding pot, but delivery is through multiple routes depending on who you are and where you live – for example:
Area/eligibility-based grants delivered locally (such as Warm Homes: Local Grant via local authorities for eligible low-income homes).
Direct support for low-income / fuel-poor households, alongside
Low/zero-interest finance options for other homeowners (e.g., loans that can potentially sit alongside existing schemes like the Boiler Upgrade Scheme).
In other words, the Warm Homes Plan is the umbrella, and the “scheme you apply to” is usually one of the component programmes under it.
The plan (published 21 January 2026) is designed to help households cut bills by supporting measures such as insulation, solar panels, battery storage and heat pumps, with help delivered through a mix of targeted grants for lower-income homes and low/zero-interest finance for homeowners. In practical terms, many readers who qualify for free upgrades in England will be funnelled towards the existing Warm Homes: Local Grant route (which is postcode/eligibility-based and typically arranged via local delivery), while others may find the new finance options more relevant than a grant.
The potential upside is significant if you’re in-scope, but expect phased roll-out, local availability rules, and paperwork, and bear in mind that schemes often prioritise “fabric first” improvements (like insulation) before add-ons such as solar.
UK solar panel grants and funding schemes at a glance
Name of grant
Who’s it for?
What you get
Who runs it?
Region
Closing date
ECO4 (Energy Company Obligation 4)
Low-income households (<£31,000) receiving benefits; homes rated D/E or lower
Up to £10,000 for energy efficiency improvements, including solar panels
Ofgem / Major energy suppliers
England, Wales, Scotland
Extended to 31 December 2026. May be extended further as ECO5
ECO4 Flex (LA Flex)
Households above £31,000 income threshold, vulnerable people, elderly, those with health conditions
Similar to ECO4, but councils can set their own criteria
Local authorities in partnership with Ofgem
England, Wales, Scotland (varies by council)
March 2026
Warm Homes Nest Scheme
Low-income households or those receiving means-tested benefits
Average grant ~£2,500 for solar panels, insulation, and heating
Welsh Government / Nest
Wales
Ongoing
Warmer Homes Scotland
Low-income and vulnerable households
Up to £10,000 for energy efficiency and renewables, incl. solar
Warmworks (Scottish Government)
Scotland
Ongoing
Home Energy Scotland Grant and Loan Scheme
Any homeowner in Scotland
Grants and 0% interest loans (up to £5,000 for solar thermal/hybrid panels)
Home Energy Scotland (Scottish Government)
Scotland
Ongoing
Solar Together
Homeowners and tenants (with landlord’s permission)
Bulk-purchase discounts (around 30% cheaper) on panels and batteries
Local councils / iChoosr
England, Wales, some Scotland councils
Varies by local council
0 per cent VAT on solar panel installations in homes
All households installing solar panels
No VAT charged on purchase and installation
UK government
UK-wide
April 2027
Northern Ireland Sustainable Energy Programme (NISEP)
Low-income households via utility providers
Grants for energy efficiency, sometimes incl. solar
Utility Regulator NI / Energy suppliers
Northern Ireland
Annual funding
Smart Export Guarantee
Any household with MCS-certified solar panels and smart meter
Guaranteed income for unused electricity sold to the grid
Ofgem / Licensed energy suppliers
UK-wide
Ongoing
Those with less energy efficinet homes could benefit from ECO4 (Alamy/PA)What solar panel grants and funding schemes are available?1. Energy Company Obligation 4 (ECO4) grantWhat is it?
If you or someone you live with qualifies for state benefits, then the ECO4 grant could be for you.
It is a government efficiency scheme designed to tackle fuel poverty and cut carbon emissions.
As the name suggests, this is the fourth version of the scheme, which is funded by big energy companies and administered by the energy regulator Ofgem. The ECO4 has been extended to 31 December 2026, rather than ending in March 2026, although Energy Saving Trust says there are no additional delivery targets and £1.5bn previously allocated to ECO is being redirected to Warm Homes funding.
Who is eligible?
You can get help if you earn less than £31,000 as a family, and receive one of the following benefits:
Child Tax Credit
Working Tax Credit
Universal Credit
Pension Guarantee Credit
Pension Savings Credit
Income Support
Income-based Jobseeker’s Allowance (JSA)
Income-related Employment and Support Allowance (ESA)
Child Benefit
Housing Benefit
If you own your house, it must be rated D or lower for energy efficiency, and if you rent, it’s E or lower. If you are in social housing, you may get help for insulation and heating systems, but not solar installations.
You can apply with your energy company for up to £10,000 of funding. The scheme is for broad energy efficiency, so you might find that insulation and a smart thermostat are better uses of the funding for your energy use.
You can also receive help for air source heat pumps, electric storage heaters, loft and wall insulation, and smart heating controls.
Solar panels can ease your reliance on the grid (PA)How to apply
You can apply for the funding in England, Wales and Scotland, but not Northern Ireland, by contacting your local council or a big energy firm such as British Gas. A list of participating firms is on the Ofgem website.
About 18,700 homes have received solar panels or a heat pump through the scheme, according to data from the Department for Energy and Net Zero.
2. ECO4 FlexWhat is it?
ECO4 Flex, also called Local Authority (LA) Flex, is an extension of ECO4 that gives councils more flexibility over eligibility criteria. LA Flex allows local authorities – councils and local government, in this case – to set their own criteria for getting funding, which could mean that you might not need to be on benefits to qualify.
Who is eligible?
People who don’t meet the standard ECO4 requirements but are considered vulnerable, such as households just above the £31,000 threshold, older residents, or those with medical conditions made worse by cold homes.
It is targeted at people vulnerable to the effects of the cold, including the elderly and those with health problems.
Your local government website should indicate if it is part of the scheme and what criteria it has chosen. So, if you earn a little above the £31,000 for most applicants for the ECO4 scheme, applying through your local council might be the best plan.
How to apply
Check your local authority’s website to see if it participates and what criteria it has set. Applications are usually made directly through your council rather than your energ
3. Welsh Government Warm Homes Nest SchemeWhat is it?
The Nest Warm Homes Programme is targeted at disadvantaged communities in Wales on low incomes, and it is unusual in having no end date yet.
As with other schemes, you can apply for a plethora of improvements beyond a solar installation, including insulation and heating systems.
Who is eligible?
Naturally, this scheme is only for those who live in Wales. You will need to own a home or be a private tenant and receive a means-tested benefit or earn a low income.
Finally, you will need to be in a home with an energy efficiency rating of E or lower. If your rating is D and you or someone you live with has a health condition, you may also qualify.
The health conditions include respiratory diseases such as chronic obstructive pulmonary disease; circulatory diseases such as strokes and heart attacks; mental health struggles, dementia and developmental disorders.
ECO4 Flex allows local authorities to set their own criteria for funding (AP)
There is no listed claim limit, although the Welsh Government said in 2023, that the average claim is £2,457.
How to apply
Contact Nest on 0808 808 2244 during office hours, Monday to Friday.
4. Northern Ireland Sustainable Energy Programme (NISEP)What is it?
The Northern Ireland Sustainable Energy Programme (NISEP) is an annual £8 million fund overseen by the Utility Regulator NI and delivered by local energy suppliers. It is funded through a levy on electricity bills and supports a range of energy efficiency improvements. While much of the funding focuses on insulation and heating upgrades, some suppliers also use it to subsidise solar panel installations or renewable technologies.
Who is eligible?
The programme is primarily targeted at low-income and vulnerable households, often defined as those receiving benefits or struggling with fuel poverty. However, each year’s funding round is divided into “priority” and “non-priority” groups, meaning some schemes are open to all households, regardless of income, if budget allows.
How to apply
Unlike UK-wide schemes such as ECO4, there isn’t a single central application process. Instead, households apply directly through participating energy suppliers in Northern Ireland, such as Power NI or SSE Airtricity, depending on who is running funded projects that year. The list of approved schemes and eligibility criteria is published annually on the Utility Regulator’s NISEP page. Funding is limited and allocated on a first-come, first-served basis, so early application is advised.
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5. Home Energy Scotland Grant and Loan SchemeWhat is it?
The Home Energy Scotland Grant and Loan scheme is for those living in Scotland and now covers solar thermal panels – those that heat water rather than generate electricity – and hybrid units that do both.
A £5,000 interest-free loan is available for these panels.
Who is eligible?
The criteria are much more relaxed than other schemes and anyone in Scotland can apply if they are doing so for their own home.
The loans are interest-free, although a 1.5 per cent fee is applied to the loan. Even after this fee is applied, it is still a very cheap way to borrow for these panels if you live in Scotland.
How to apply
Ring Home Energy Scotland on 0808 808 2282 during normal office hours.
6. Warmer Homes ScotlandWhat is it?
Warmer Homes Scotland is the Scottish Government’s flagship fuel poverty programme, delivered by Warmworks. It provides a tailored package of energy efficiency measures worth up to £10,000 per household, which can include insulation, new heating systems, draught-proofing, and in some cases renewable technologies such as solar panels or heat pumps. The scheme launched in 2015 and has already helped tens of thousands of Scottish households cut their bills and carbon emissions.
Who is eligible?
The programme is aimed at households struggling with fuel poverty – typically residents on low incomes or those considered vulnerable due to age, disability, or health conditions made worse by living in a cold home. To qualify, applicants must usually own their property or rent privately (with landlord consent), live in Scotland, and meet specific income thresholds. Priority is often given to homes with poor energy efficiency ratings (EPC band E, F or G).
How to apply
Applications start with a call to Home Energy Scotland (0808 808 2282), which will run through a short eligibility check. If you qualify, you’ll be referred to Warmworks for a free home survey. This survey identifies which improvements will have the biggest impact on your home, and the cost is covered by the Scottish Government. If solar panels or other renewable options are suitable, they may be included in your package. Funding is limited, so early application is recommended.
Read more: My honest review of Sunsave solar panels
Solar panel discounts and incentives1. Solar TogetherWhat is it?
Solar Together is a scheme to group-buy solar panels and batteries, keeping costs down. Solar panel providers bid for the chance to install the solar panels. It is more of a bulk discount than a grant. It is available in certain local authorities that have signed up to the scheme.
Who is eligible?
This is probably the scheme with the broadest appeal. It’s open to homeowners and tenants who have gained their landlord’s permission in council areas that are part of the scheme.
It is UK-wide and can offer discounts of about a third compared to going it alone.
How to apply
Firstly, check that your council is part of the scheme. You can do that on the Solar Together website, where you can also apply.
Some councils have run the scheme in the past and then withdrawn, often due to a lack of interest. Solar Together encourages you to register your interest to show that there is demand if your local authority is not taking part.
Once you have applied, you wait until registration closes in your area. Then, solar installers are invited to bid for your work, with the cheapest winning.
This is particularly useful for those who don’t want to haggle themselves over their solar quotes.
Solar panels on the roof of an apartment block in Bethnal Green, east London (PA)2. 0% VAT on solar installationsWhat is it?
The UK government normally charges VAT on most goods and services, but qualifying energy-saving improvements to homes receive special treatment. In Great Britain, solar panel installations are currently eligible for 0% VAT when they are supplied and installed by a qualifying installer.
This temporary relief was introduced in 2022 and is due to run until 31 March 2027, after which the rate is scheduled to return to 5% from 1 April 2027. While it could be extended, Chancellor Rachel Reeves has been looking for ways to raise money for the Treasury, and solar panels may find themselves in the firing line.
In Northern Ireland, different rules can apply, so homeowners may not always receive the full 0% rate.
Who is eligible?
In Great Britain, homeowners generally receive the relief when qualifying solar panels are installed in their home by an installer. You cannot buy the equipment yourself and claim the lower VAT rate later. In Northern Ireland, eligibility and the rate charged depend on additional conditions and how the installation costs are structured.
Read more: My honest review of SunPower Maxeon 7 solar panels
3. Smart Export Guarantee
Selling your energy back to the grid could make you money, albeit not as much as a full-sized power station (PA)What is it?
Replacing the previous feed-in tariff, the smart export guarantee was introduced in 2020 and ensures energy companies offer a rate for homeowners to sell their unused power back to the grid.
This is particularly important since many homeowners will use more power at home in the evening, while solar panels generate most power during the day. For more on the SEG, see our in-depth guide on how the Smart Export Guarantee works.
Who is eligible?
It is available across the UK, and even if you have panels and a solar battery to use your panel-generated power later in the day, it’s important to have a good export agreement in place to get a good price for your power, since bigger homes may sell more than they use.
How to apply
The guarantee means power companies must offer a rate for selling to the grid, so there is no need to apply. But it is worth shopping around to ensure your purchased power is cheap and that you are getting a good rate when you sell, too.
In-roof solar panel fitting sytems offer a cheaper solution to solar tiles for those who want a better-looking roof (Howard Mustoe)How we did our research
To create this guide, we analysed the full range of UK government schemes, devolved nation programmes, and local authority initiatives currently offering financial support for solar panels. We consulted official sources including Ofgem, the UK Government, the Energy Saving Trust, and devolved administrations in Wales, Scotland and Northern Ireland.
We also spoke to accredited solar installers and reviewed advice from energy industry bodies to ensure the information is accurate and up to date. Where possible, we have linked directly to application pages so you can check eligibility and apply with confidence.
Why trust us?
The Independent has been reporting on green energy and climate matters since it was founded in 1986. Our Home Improvement team produces in-depth, impartial reviews on everything from the best solar panels to the cost of solar panel installation and the best solar panel installers in the UK. Each article is researched and fact-checked by our journalists, drawing on government data and expert interviews.
We do not accept payment to feature schemes or installers in our guides. Our aim is to give readers clear, reliable advice that helps them make informed decisions about their homes.
Who is eligible for solar panel funding?
Eligibility for solar panel grants in the UK varies by scheme, but most are targeted at households on lower incomes, properties with poor energy efficiency, or residents with specific needs.
Income and benefits: ECO4 and related schemes require households to earn under £31,000 or receive benefits such as Universal Credit or Pension Credit. Wales’ Nest and Warmer Homes Scotland follow similar thresholds.
Property type: Homeowners are the main beneficiaries, but tenants can also apply with landlord consent. Landlords themselves may qualify if improving their properties’ EPC ratings.
Region: England, Wales and Scotland fall under ECO4. Wales has the Nest scheme, Scotland offers Home Energy Scotland and Warmer Homes Scotland, while Northern Ireland runs its own NISEP programme.
Special groups: Pensioners, people with health conditions, and households in rural or off-grid areas may be prioritised through ECO4 Flex or devolved nation programmes. Local authorities have discretion to widen eligibility in some cases.
Alternatives if you don’t qualify for solar panel grants
Not everyone will meet the criteria for government-backed solar panel funding schemes. If you fall outside the eligibility rules, there are still ways to reduce the cost of solar panels:
Green loans and low-interest borrowing: Several banks and building societies offer loans specifically for home energy improvements, sometimes at lower rates than standard personal loans.
Supplier financing packages: Many solar installers provide financing options that spread the cost of installation over several years, often at competitive rates.
Universal incentives: Even without grants, households benefit from the 0% VAT relief on solar installations until 2027 and can earn money by exporting electricity under the Smart Export Guarantee.
Return on investment: Solar panels can cut hundreds of pounds off annual electricity bills. With falling technology costs and rising energy prices, the typical payback period is now between 8 and 12 years, after which savings continue for the lifespan of the system.
What government incentives are available for businesses?
Businesses in the UK looking to install solar panels can access several government-backed incentives and funding routes that help reduce the upfront cost and improve payback. Key schemes include:
1. Tax relief via capital allowances
Under the Annual Investment Allowance (AIA), companies investing in plant and machinery, including solar PV installations, can deduct the full cost (up to a limit) from taxable profits in the year of investment. This improves cash flow and shortens the payback period for the investment.
2. Payments for exporting energy: the Smart Export Guarantee (SEG)
Businesses generating surplus solar power (typically from systems up to 5 MW) can export that electricity to the grid and receive payments from energy suppliers who are SEG licensees. While this doesn’t cover installation costs, it provides an ongoing revenue stream that boosts the return on investment.
3. Grants and loans for greener businesses
The government provides a range of grants and loans targeted at energy-efficiency and low-carbon measures, which can be applied to solar panel installations depending on eligibility:
The Industrial Energy Transformation Fund (IETF) supports businesses (including large-scale operations) in reducing industrial energy consumption and emissions.
The generic “financial support for businesses” portal highlights grants, loans and tax incentives that help firms invest in energy-saving technologies.
Some regionally-administered schemes (for example, through local enterprise partnerships) may offer partial capital grants for solar installations.
4. Region- and sector-specific funding
Some incentives are specific to location or sector. For example, businesses in Wales may access the Welsh Government Circular Economy Fund if they can show carbon-emission reduction via solar or other technologies.
Source: “AOL Breaking”
