Solar panel grants and funding in 2026

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 2026, it provides funding for a range of home energy upgrades including solar panels, heat pumps, insulation, and battery storage for eligible households.

Eligibility is means-tested. In England the main route is the Warm Homes: Local Grant, run by local councils: your household income usually needs to be £36,000 or less (or you receive certain means-tested benefits, or live in a qualifying postcode), and your home needs an EPC rating of D to G. Availability varies by council, so check the Warm Homes: Local Grant page on GOV.UK. GOV.UK's Find ways to save energy in your home service (which replaced the old Simple Energy Advice website) can also recommend upgrades for your property, or call 0800 098 7950. Scotland and Wales run their own schemes, such as Home Energy Scotland.

If you don't qualify for a grant, the Warm Homes Plan also includes the Warm Homes Loan Scheme, launched on 27 October 2026: cheaper loans of up to £15,000 each for solar panels and batteries for homeowners anywhere in the UK, with no income test. Our Warm Homes Loan Scheme guide explains how it works and lists the lenders.

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. It was due to close in March 2026 but has been extended to 31 December 2026 for an orderly wind-down, and there will be no successor supplier scheme after that. With the scheme winding down, capacity for new installations is limited, so check early if you think you qualify.

To qualify, you generally need to be on certain means-tested benefits (such as Universal Credit or Pension Credit) 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.

While not a grant, the zero rate of VAT on residential solar panel installations is worth including here because it's significant. Since April 2022 (May 2023 in Northern Ireland), solar panels and associated equipment installed in homes have been zero-rated for VAT, down from 5%, and batteries installed on their own have qualified since February 2024. The zero rate is temporary: it's due to return to 5% on 1 April 2027. On a typical 4kW installation at £5,000–£6,500, it saves around £250–£325.

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 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 that pays you for every unit of surplus electricity you export to the grid.

SEG rates are set by each supplier and vary widely. Basic tariffs pay a few pence per kWh, mainstream fixed export tariffs pay around 12p, a few suppliers pay a little more if you also buy your electricity from them, and tariffs tied to a battery or to a supplier-arranged installation can pay considerably more. You must have an MCS-certified installation and a smart meter that records your exports to qualify. The income is real money too: a 4kW system exporting around 60% of what it generates earns roughly £250–£275 a year at 12p/kWh.

The law requires larger suppliers to offer a SEG tariff, and the rate must always be above zero, but the rate itself isn't guaranteed. Each supplier sets its own price and contract length and can change them, so treat any figure as today's rate rather than a promise for the lifetime of your panels.

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.

If you don't qualify for any grant scheme, the main ways to pay are cash (usually the best return), a personal loan, or finance arranged through your installer. Some lenders also offer green loans or mortgage borrowing for energy upgrades. Terms vary a lot between lenders and installers, so compare the total amount you'd repay, not just the monthly figure. We don't provide, arrange or advise on finance.

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, which can complicate property sales and may not deliver the savings promised.