Are government grants for solar panels available in the UK?

✅It’s possible to get free solar panels with the ECO4 grant
✅For non-qualifying households, subscription plans, instalments and other funding options exist

Solar panels are increasingly popular among homeowners as energy prices rise: about 1.3 million households in the UK have opted for this sustainable energy option. 

While a solar panel system is not cheap (the average cost of solar panels for a three-bed house is about £9,000 including a battery), there are ways to lower the costs. If you receive benefits, for example, there’s a good chance you’ll qualify for a grant to help with the cost. Solar panel grants offer free solar panels to qualifying households, to help with the large upfront costs. Our experts have explored the latest grants and funding options, so you have all the information you need to make the most out of solar energy opportunities.

Are government grants for solar panels available in the UK?

UK homeowners have access to several solar panel grants, as well as other incentives designed to encourage the adoption of renewable energy and reduce your household bills.

We regularly review solar panel funding, updating our information with the latest government and financial organisations’ announcements. Last updated: 29 April 2025.

UK solar grants currently available

UK solar grant: Energy Company Obligation 4 (ECO4) inc LA Flex
Run time: April 2022 – March 2026
Eligibility: Homes in England, Scotland, or Wales. Eligibility determined by local authorities
Potential savings: Households could receive free solar panels

UK solar grant: Solar Together
Run time: Ongoing
Eligibility: Homeowners and renters living in a participating council area
Potential savings: Savings vary (savings of 10–25% have been made previously)

UK solar grant: Warm Homes – Local Grant (WHLG)
Run time: April 2025 – 31 March 2028
Eligibility: England only (separate schemes operate in the devolved nations). Owner-occupiers or private renters (landlords apply on tenants’ behalf). Low-income households – broadly: gross income ≤ £36,000, OR receipt of means-tested benefits, OR living in a postcode within the lowest income deciles. Homes with an EPC rating of D–G.

Potential Savings: WHLG’s twin £15 k caps mean many low-income households will get a complete deep-retrofit package for free. That can translate into four-figure annual bill reductions and a warmer, healthier home with decades of lower running costs.

UK solar grant: Welsh Government Warm Homes Nest Scheme
Run time: Ongoing
Eligibility: Welsh households receiving income-related benefits, properties with low energy performance ratings
Potential savings: Households could receive free solar panels

UK solar grant: Home Energy Scotland Grant and Loan Schemes
Run time: Solar-PV and battery funding stopped on 6 June 2024; the loan now covers heat pumps & insulation only.
Eligibility: All households in Scotland
Potential savings: Households could receive up to £6,000

UK solar grant: Home Upgrade Scheme (HUG2)
Run time: April 2023 to March 2025 – Applications closed on 31 March 2025. Only projects already approved are being finished.
Eligibility: Low-income households, off-grid, low energy efficiency rated property
Potential savings: Local authority dependent, but households could receive up to £10,000

UK government schemes currently available

Scheme: Smart Export Guarantee (SEG)
Expiration date: Ongoing
Eligibility: Homes with a Microgeneration Certification Scheme (MCS) certificate, or equivalent document. Installation must include an export meter and have a maximum capacity of 5MW
Potential savings: 1p – 40p per kWh of excess electricity produced by solar panels – typical 2025 averages.

Scheme: Zero per cent VAT
Expiration date: April 2022 – March 2027
Eligibility: Solar panel purchases and installations made in England, Scotland, and Wales
Potential savings: Savings dependent on solar panels cost

Am I eligible for solar panel grants and schemes?

The eligibility requirements for grants for solar panels vary greatly according to the scheme you’re applying to. You may be required to live in a certain area or type of property to benefit, meet certain income or financial requirements, or live in a building with particularly poor energy efficiency, for example.

Before you start an application, do check that you understand and meet all the eligibility criteria for the particular grant so you don’t waste time and effort applying to something you are not eligible for. The exact details of these criteria will be outlined by the organisation administering the grant, and can most often be found on the relevant scheme’s website.

Energy Company Obligation 4 (ECO4) including LA Flex

• Eligibility: most people who receive a form of government benefits
• Apply until: March 2026

The Energy Company Obligation (ECO) is a UK government scheme managed by Ofgem. It places a Home Heating Cost Reduction Obligation (HHCRO) on medium and large energy suppliers and aims to improve the country’s least energy-efficient homes – those with an Energy Performance Certificate (EPC) of D or below. It also targets low-income families and other vulnerable households receiving government benefits, such as income support or child benefits.

Under the ECO, there have been multiple phases, each with slight changes in focus and eligibility criteria. If you receive any of the following benefits, you could be eligible for ECO4 funding: 

• Income-based Jobseekers Allowance (JSA)
• Income-related Employment & Support Allowance (ESA)
• Income Support (IS)
• Universal Credit (UC)
• Housing Benefit
• Working Tax Credit (WTC)
• Child Tax Credits (CTC)
• Pension Credit Guarantee
• Pension Credit Savings Credit

Anyone with additional Department for Work and Pensions (DWP) benefits could also be eligible for ECO4, regardless of whether they receive Universal Credit.

The primary focus of the grant is on homes occupied by their owners. However, it will also extend support to energy inefficient social housing and privately rented residences, provided the property owner permits works to take place.

How to apply for the ECO4 grant

Applying for an ECO4 grant is quick and straightforward, and there are a number of solar companies and installers that offer the grant. These can be found through an online search.

The application follows a similar process, whoever you choose to go through.

1. Follow the online application process to confirm your eligibility.
2. Once you have done this, you’ll receive an email containing a unique reference number and a document. This asks for your permission to contact the Department of Work and Pensions to confirm your benefits. The document can be digitally signed and returned.
3. Within a week, you should be contacted to arrange a free survey. The survey consists of a 10 – 15 minute inspection of your home’s energy efficiency measures and is designed to be minimally intrusive.
4. Once the survey is completed and your application approved, installing your solar panels can take up to eight weeks.

LA Flex (Local Authority Flexible Eligibility) is an extension of the ECO4 scheme. Under this initiative, local authorities can determine eligibility criteria for energy efficiency measures and identify households that may not have been eligible under the national criteria.

This criteria could be:

• The household is defined as low-income and is at risk of fuel poverty
• The property is hard to heat, often due to poor insulation or lack of a central heating system
• The residents are vulnerable in some way, such as being elderly, disabled, or having young children

It’s also important to note that private tenants can be eligible under LA Flex, with their landlords’ permission. If you are eligible under ECO4, or LA Flex, you could be entitled to up to 100 per cent off your solar panels. 

If you are eligible under ECO4, or LA Flex, you could be entitled to up to 100 per cent off your solar panels. 

Q&A with Kevin Henney, Director at ECO4 Hub

To gain a deeper understanding of how the ECO4 grant works, our researchers spoke to Kevin Henney, Director at ECO4 Hub. 

Independent Advisor: First, please tell us a little about yourself and your role.

Kevin Henney: I currently serve as Director at ECO4 Hub. I am responsible for managing and overseeing all the activities related to the ECO4 grant programme. This includes reviewing grant applications, coordinating with local authorities, and ensuring the smooth and efficient installation of energy-efficient systems for our clients.

IA: How many grants have been approved over the past year? Have you seen an increase in grant applications over the past 12 months?

Henney: Over the past six months, we have successfully finished more than 60 installations, and we currently have more than 100 slated for the near future. 

Over the last 12 months, we’ve indeed observed a significant uptick in grant applications.

This surge can be attributed to the rise in the cost of living and energy, as well as increased awareness about the grant.

IA: Can you give us an idea of how much money people are awarded? Is there a range or an average amount you can share?

Henney: The amount of money awarded per grant varies greatly depending on the work required for each individual property. Our goal under the regulations is to maximise energy efficiency. 

We’ve dealt with diverse projects, from single-measure installations like a boiler replacement worth £5,000, up to comprehensive energy makeovers involving internal wall insulation, loft insulation, an upgrade to an air source heat pump and the installation of solar panels, with a total value exceeding £80,000.

IA: How long does it typically take for someone to get their grant approved?

Henney: The approval time for a grant depends on a few factors, mainly the two routes that can be followed:

• Home Heating Cost Reduction Obligation (HHCRO): This applies to individuals on eligible benefits. This is a quicker process, as once the benefits are verified we can proceed to survey/installation. This could take less than a week.
• Local Authority Flexibility: The criteria for this route are determined by the local council. Some councils have additional routes, such as a combined household income below £31,000 per annum or a person suffering from an illness that worsens in cold weather. This process can take a few weeks, as the council needs to approve the proposed work.

IA: Once a grant is approved, what are the next steps for a homeowner? How long does it take from grant approval to solar panel installation?

Henney: Upon approval of a grant and once the client confirms they are happy with the proposed work, we can proceed to installation. In some cases, we’ve even completed installations within the same week of approval.

IA: Are there any common mistakes people make when applying that can delay the grant approval process?

Henney: The most common errors made during application that delay the process include not using the exact spelling of the applicant’s name and not having the necessary documentation for local authority approval, such as a council tax bill. It’s essential to pay attention to these details to ensure a smooth application process.

IA: What documentation is required when applying for the ECO4 grant?

Henney: If you receive benefits, you must sign a consent form, which the Energy Saving Trust verifies, and provide a copy of a utility bill. If you are applying under the Local Authority Flexibility criteria, you’ll need your council tax bill, ID, and evidence that the household income is under £31,000 per annum, whether in the form of a pension statement, three months’ payslips and bank statements, or a P60 dated in the last six months.

Solar Together

• Eligibility: homeowners and renters in participating council areas
• Application period: ongoing

Solar Together is a group buying scheme for solar panels operating in local council regions of the UK. Its goal is to make solar power more accessible and affordable for homeowners and small businesses.

The scheme brings together households and local government authorities to create a collective buying group for solar panels. Interested parties register, and solar panel providers bid for the opportunity to install their panels for the group. This typically results in a competitive installation price, lower than what an individual household could negotiate.

Once a winning provider is selected, registered participants receive a personal recommendation tailored to their specific needs. They can then decide whether or not to go ahead with the installation.

The Solar Together scheme aims to promote the use of renewable energy, reduce carbon emissions, and help residents save money on their energy bills. It not only provides a platform for more cost-effective solar panel installations and high-quality installations, full technical surveys, and thorough customer service throughout the process.

How to apply for the Solar Together scheme

Homeowners living in a participating council area just need to register online on the Solar Together website.

Home Upgrade Scheme (HUG2)

• Eligibility: low-income and in an off-grid or low energy efficiency rated property
• Apply until: March 2025

The HUG2 scheme has been running since April 2023 and will accept applications until March 2025, supporting low-income families by awarding grants of up to £10,000 for solar panels and other energy efficient home improvements. 

Privately rented property eligibility is limited to landlords with a portfolio of four properties or fewer. Landlords must contribute one-third of the total cost of any upgrades.

To be eligible, you must:

• Reside in a property that’s a domestic off-gas grid dwelling with an EPC rating of band D or lower
• Have a combined gross annual income of under £31,000, which must be verified, 

or

• Be located in an economically deprived neighbourhood (based on data drawn from the Indices of Multiple Deprivation)

How to apply for HUG2

For homeowners, you’ll need to check if your council offers the scheme, and reach out to them to apply to the scheme. If you live in a privately rented property, your landlord will need to apply.

Home Energy Scotland Grant and Loan scheme

• Eligibility: all homeowners in Scotland
• Application period: ongoing

The Home Energy Scotland Grant and Loan scheme is available to all homeowners in Scotland and is designed to award either grants or provide interest-free loans for energy efficient home improvements. 

A rural uplift is also available to provide extra support to rural and island homes, which can face increased costs to install home improvements.

The Scottish government’s scheme can help with: 

• Solar panels: £6,000 (£1,250 grant plus £4,750 optional loan). Funding only available if taken as a package of measures
• Solar water heating systems: £5,000 (loan only, no grant available)
• Hybrid solar panel/ water heating systems: £5,000 (loan only, no grant available)
• Solar storage systems (heat or electric batteries): £6,000 (£1,250 grant plus £4,750 optional loan). Funding only available for either a heat or electric battery if taken as a package of measures

How to apply to the Home Energy Scotland Grant and Loan scheme

If you’re a homeowner, it’s easy to apply for the grant by speaking to someone at Home Energy Scotland, either by email, phone or Whatsapp.

Welsh Government Warm Homes Nest scheme

• Eligibility: Welsh homeowners and private renters with income-related benefits and properties with low energy performance ratings
• Application period: ongoing

The Warm Homes Nest scheme from the Welsh government offers free advice on making homes energy efficient, and eligible households could receive free home improvements, including solar panels. 

You could be eligible for free solar panels if you meet all three conditions below:

• Own or privately rent your home
• Have poor energy efficiency and high heating bills
• Receive a means-tested benefit or have a chronic respiratory, circulator, or mental health condition

How to apply to the Nest scheme

If you have questions about the scheme or your eligibility, you can call Nest for free advice. The Welsh government website also provides information and advice.

Smart Export Guarantee (SEG)

• Eligibility: homes with solar panels or wind turbines, an export metre and an MCS certificate
• Application period: ongoing

This scheme, introduced by the UK government, came into effect on 1 January 2020, with the view to replace the previous Feed-in Tariff scheme. The SEG mandates that larger energy suppliers must offer an export tariff to their customers who generate their own renewable electricity, such as through solar panels or wind turbines.

Anyone who installs a renewable energy system – such as solar panels or wind turbines – with a capacity up to 5MW, can qualify for the SEG. They must also have an export meter installed and an MCS certificate, or equivalent document. While it’s not necessary to incorporate a solar storage battery into your system to be eligible for SEG, it could be a useful addition, ensuring no surplus energy is wasted. 

How to apply for SEG

In order to receive payment under SEG, you will need to apply directly to a supplier offering SEG tariffs. The energy suppliers providing these tariffs are listed on the Ofgem website.

It’s worth noting that the supplier who provides your energy doesn’t necessarily need to be your SEG tariff supplier. These can be two separate entities.

Suppliers under the SEG are mandated to offer you a tariff, but they have the discretion to set the terms of that tariff, which could be either fixed or variable.

Be aware that these tariffs can shift over time, so it’s advisable to regularly review your current tariff to ensure it remains competitive.

If you possess a storage device like a household battery or an electric vehicle capable of importing and exporting electricity, you could benefit from the SEG. You can seek advice about this from your potential SEG tariff supplier.

Zero VAT

• Eligibility: UK homes with solar panels 
• Apply until: March 2027

In the UK, the VAT (Value Added Tax) rate on most goods and services is 20 per cent. However, as part of the UK government’s efforts to encourage energy efficiency and the use of renewable energy sources, certain energy-saving materials and equipment including the best solar panels are eligible for a reduced VAT rate. 

This reduced rate is currently 0 per cent until 31 March 2027, and it applies to the supply and installation of solar panels on residential properties in England, Scotland, and Wales.

How to apply

There’s no need to apply for zero VAT, as it should automatically be applied by your installer.

Written by Katharine Allison Energy Saving Expert
Updated: May 14, 2024
Verified by Amy Reeves