Solar panel grants and funding in the UK
As energy prices continue to rise, more UK homeowners are turning to solar power to cut bills, reduce their carbon footprint, and gain energy independence. While solar panels are a long-term investment, there are now more ways than ever to make installation more affordable – thanks to government solar panel grants, local council funding, and tax incentives.
Solar panel grants – government support
Although there are no national grants designed solely for solar panels, several government-backed programmes and local authority schemes can help cover the cost of solar installation and other green improvements for your home.
Energy Company Obligation (ECO4)
The Energy Company Obligation, or ECO4, is a government-funded scheme that helps low-income and vulnerable households across England, Wales, and Scotland improve their homes’ energy efficiency. You may be eligible if your household income is below £31,000, if you receive certain benefits, and if your property has an Energy Performance Certificate (EPC) rating of D, E, F, or G.
Homeowners with an energy rating of D or below may qualify, while private renters must have a rating of E or lower. Tenants in social housing can also benefit from the scheme, although funding is usually limited to insulation and heating improvements rather than solar panels.
A qualified assessor will carry out a survey of your home to determine what upgrades are needed. This might include measures such as loft or wall insulation, floor insulation, or even solar panel installation. If you qualify, these improvements could be provided free of charge or at a significantly reduced cost.
Local Authority Flexibility Scheme (LA Flex)
If you narrowly miss out on ECO4, you might still qualify under the Local Authority Flexibility Scheme, better known as LA Flex. This is an extension of the ECO4 programme that allows local councils to set their own eligibility criteria for funding.
LA Flex aims to support households with modest incomes that sit just above the ECO4 threshold, as well as older residents, people with health conditions made worse by cold homes, and those who do not claim benefits but are still struggling to pay energy bills. Each local authority has slightly different rules, so it’s worth checking your council’s website to see if it participates in the scheme and what criteria apply in your area.
Warm Homes: Local Grant (England)
Launched in 2025, the Warm Homes: Local Grant provides up to £30,000 to help households make their homes warmer and more energy efficient. The funding can be used to pay for upgrades such as insulation, solar panels, and low-carbon heating systems like air source heat pumps.
You may qualify if your total household income is below £36,000, if you live in an eligible postcode, or if you receive a benefit such as Universal Credit, Pension Credit, or Housing Benefit. To apply, you must live in England and either own your home or rent from a private landlord. The property must have an EPC rating between D and G.
The scheme allows homeowners to receive up to £15,000 towards general energy-efficiency improvements and a further £15,000 for low-carbon heating installations. The overall aim is to bring your home’s EPC rating up to at least a C. Homeowners can apply online through the government’s eligibility checker or their local council. Tenants in private rentals will need to apply with their landlord’s support through their local authority.
Group buying schemes – Solar Together
We’re proud to partner with Solar Together, a national group-buying scheme that helps homeowners and tenants (with their landlord’s permission) save money on solar panel and battery installations. Solar Together works with local councils and iChoosr to bring together households interested in solar power and connect them with trusted, vetted installers – like us.
To take part, you simply register your interest when your local council is running the scheme. Once registration closes, accredited installers are invited to submit competitive bids for the work. You’ll then receive a personalised offer based on your home. It’s a straightforward and cost-effective way to go solar.
Zero VAT on solar installations
Right now, homeowners across the UK benefit from zero percent VAT on solar panel installations. This measure was introduced by the government in 2022, reducing VAT from 5% to 0% in an effort to help households invest in renewable energy and move closer to net-zero emissions. The scheme is currently due to end in 2027, although there are rumours it will be extended beyond that.
Smart Export Guarantee (SEG)
Once your solar panels are installed, you can start earning money through the Smart Export Guarantee, commonly known as SEG. This scheme ensures that energy suppliers must pay you for any electricity your panels generate but you don’t use, which is then exported back to the grid.
This can be especially beneficial since most households use more energy in the evenings, while solar panels produce power during daylight hours. There’s no separate application needed for SEG, but it’s worth comparing tariffs from different suppliers to make sure you’re getting the best possible rate for your exported electricity.
Warm Homes Nest Scheme (Wales)
In Wales, homeowners and private tenants on low incomes or receiving benefits may qualify for the Warm Homes Nest Scheme. This programme funds a range of energy-efficiency improvements, including solar panels, for properties that meet the eligibility criteria.
To qualify, you must own or privately rent your home, and the property must have an EPC rating of E or lower. If your rating is D, you may still be eligible if you or someone you live with has a health condition such as a respiratory or circulatory disease. There is no strict limit to the amount you can receive, but the average award is around £2,457.
Warmer Homes Scotland
In Scotland, the Warmer Homes Scotland programme, delivered by Warmworks on behalf of the government, offers a tailored package of energy-efficiency improvements worth up to £10,000 per household. Depending on your needs, this may include insulation, new heating systems, solar panels, or air source heat pumps.
The scheme is designed to help households on low incomes or those considered vulnerable because of age, disability, or health conditions made worse by cold living conditions. To be eligible, you must live in Scotland, own your home or rent privately, and typically have a poor EPC rating such as E, F, or G. To find out if you qualify, you’ll need to contact Home Energy Scotland for an assessment.
If you have any questions about installing solar panels, batteries, air source heat pumps or EV chargers, we’d be happy to help answer them. Please get in touch with our team at sales@eerenewables.co.uk or call 0800 802 1116.
