There is no universal solar panel grant available to all UK homeowners in 2025 — but there are several targeted schemes that could significantly reduce your costs if you qualify. Here's what's actually available.
The Warm Homes Plan
The UK government's flagship Warm Homes Plan is the successor to the ECO4 and Great British Insulation Scheme. Announced in 2024 and rolling out through 2025, it provides funding for a range of home energy upgrades including solar panels, heat pumps, insulation, and battery storage for eligible households.
Eligibility is primarily means-tested — targeting owner-occupiers and private renters in lower income households, particularly those in properties with EPC ratings of D or below. The scheme is delivered through local authorities and energy companies, so availability and scope vary by region. Contact your local council or check the government's Simple Energy Advice service to find out what's available in your area.
ECO4 (Energy Company Obligation)
ECO4 is funded by the UK's larger energy suppliers and delivered to eligible households at no upfront cost. Solar panels are eligible under ECO4, though in practice the scheme has historically focused more heavily on insulation and heating upgrades. ECO4 runs until March 2026.
To qualify, you generally need to be on certain means-tested benefits (Universal Credit, Pension Credit, Child Tax Credit, etc.) or have a household income under £31,000 with a low EPC rating. If you qualify, you could receive a free or heavily subsidised solar installation — contact your energy supplier or a registered ECO4 installer to check your eligibility.
0% VAT on solar panels
While not a grant, the removal of VAT on residential solar panel installations is worth including here because it's significant. Since April 2022, solar panels, battery storage, and associated equipment installed at UK residential properties attract 0% VAT (reduced from 5%). This alone saves around £350–£550 on a typical 4kW installation.
The 0% rate applies to supply and installation together when provided by a single contractor. It does not apply to equipment-only purchases for self-installation.
The Smart Export Guarantee (SEG)
The Smart Export Guarantee isn't a grant, but it's ongoing income that materially improves the economics of solar. All licensed energy suppliers with 150,000+ customers must offer a SEG tariff — paying you for every unit of surplus electricity you export to the grid.
SEG rates range from around 4p/kWh (basic tariffs) to 15p/kWh (premium tariffs from suppliers like Octopus Energy). You must have an MCS-certified installation and a smart meter to qualify. The income is modest — typically £60–£150 per year for a 4kW system — but it's guaranteed by law and runs for the lifetime of your panels.
Local authority and housing association schemes
A number of local councils run their own solar installation schemes, often backed by the UK Shared Prosperity Fund or local levelling-up grants. These vary enormously by area. Some offer free solar to low-income owner-occupiers; others run group-buying schemes that negotiate reduced prices for residents. Check your council's website or contact them directly.
Social housing tenants may also benefit from solar installed by their housing association — many registered providers have active programmes to upgrade their stock under Warm Homes commitments.
Financing options if you don't qualify for grants
If you don't qualify for any grant scheme, the main financing options are cash purchase (best return), personal loan (typically 5–10% APR), or installer finance (often 0% for shorter terms, higher APR for longer). Solar-specific green finance products are also available from some lenders at competitive rates.
Avoid any financing where the lender takes a charge on your property, and be cautious of long-term lease or power purchase agreement (PPA) arrangements — these can complicate property sales and may not deliver the savings promised.