Solar panel grants: Available UK schemes in 2024

UK homeowners can benefit from several solar panel grants and other incentives designed to encourage the switch to renewable energy systems and reduce household bills.

We regularly review solar panel funding, updating our information with the latest government and financial organisations’ announcements. Last updated 24 May 2024.

UK government schemes currently available

Discover how much solar panels would cost for your home by answering a few quick questions

The eligibility requirements for grants for solar panels vary greatly from scheme to scheme. For example, in order to benefit, you may need to live in a particular area or type of property, meet certain income or financial requirements, or live in a building with particularly poor energy efficiency.

To avoid wasting time and energy, before you start an application, make sure you understand and meet all the eligibility criteria for that particular grant. The exact details of these requirements will be outlined by the organisation administering the grant and can usually be found on the relevant scheme’s website.

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 works to improve the performance of the country’s least energy-efficient homes – those with an Energy Performance Certificate (EPC) of D or lower. The scheme also targets low-income families and other vulnerable households receiving government benefits, such as income support or child benefits.

The ECO has run multiple phases, each with slight changes in focus and eligibility criteria. If you receive any of the following benefits, you could qualify 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 who receives additional Department for Work and Pensions (DWP) benefits could also be eligible for ECO4, regardless of whether they receive Universal Credit.

The main focus of this grant is on owner-occupied homes. However, it will offer support to energy-inefficient social housing and privately rented residences, provided the property owner grants permission for work to take place.

LA Flex is an extension of the ECO4 scheme. Under this initiative, local authorities can determine eligibility for energy efficiency measures and award households that may not have qualified under the national criteria. Circumstances might include:

• The household is defined as low-income and is at risk of fuel poverty
• The property is difficult to heat – usually due to poor insulation or lack of a central heating system
• The residents are vulnerable in some way, eg elderly citizens, people with disabilities or those caring for young children

Private tenants can qualify under LA Flex with their landlords’ permission. If you’re eligible under ECO4 or LA Flex, you could be entitled to up to 100 per cent off the cost of your solar panels.

Q&A with Kevin Henney, Director at ECO4 Hub

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

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

Once a provider is selected, each of the registered participants receives a personal recommendation tailored to their specific needs. At that point, they can then decide whether to go ahead with the installation.

The Solar Together scheme aims to promote the use of renewable energy, reduce carbon emissions and help households save money on their energy bills. Not only does it provide a platform for more cost-effective and higher-quality solar panel installations, but it also offers 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 on the Solar Together website.

The HUG2 scheme has been running since April 2023 and will continue to accept applications until March 2025. It supports 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 no more than four properties. 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 (this must be verified)
• Be living in an economically deprived neighbourhood (based on data drawn from the Indices of Multiple Deprivation

How to apply for HUG2

For homeowners, check whether your local council offers the scheme, and, if so, apply directly. If you live in a privately rented property, your landlord will need to make the application.

Available to all homeowners in Scotland, the Home Energy Scotland Grant and Loan scheme is designed to either award 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 higher costs for home upgrades.

The Scottish government’s scheme can help with:

• Solar panels: £6,000 (£1,250 grant plus £4,750 optional loan). Funding is 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 battery storage): £6,000 (£1,250 grant plus £4,750 optional loan). Funding is only available for heat or battery storage if taken as a package of measures

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

If you’re a homeowner, you can apply for the grant by contacting Home Energy Scotland by email, phone or Whatsapp.

The Warm Homes Nest scheme from the Welsh government offers free advice on improving energy efficiency at home. Eligible households may qualify for free home improvements, including solar panels.

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

• You own or privately rent your home
• You have poor energy efficiency and high heating bills
• You receive a means-tested benefit or have a chronic respiratory, circulatory or mental health condition

How to apply to the Nest scheme

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

Introduced by the UK government on 1 January 2020, this replaced the previous Feed-in Tariff (FiT) scheme. The SEG mandates that larger energy suppliers must offer an export tariff to customers who generate their own renewable electricity.

Anyone who installs a renewable energy system – such as solar panels or wind turbines – with a capacity of up to 5MW can qualify for the SEG. Applicants must also have installed an export meter and have been issued an MCS certificate or equivalent document. Including a solar storage battery in your system isn’t required to qualify for the SEG, but it could be beneficial to prevent wasting surplus energy.

How to apply for the SEG

To receive payment under this scheme, you’ll need to apply directly to an energy supplier that offers SEG tariffs. You’ll find a list of participating companies on the Ofgem website.

 

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

 

Suppliers under the SEG are required to offer you a tariff. However, they’re allowed to set the terms of that tariff, which could be either fixed or variable.

 

Remember that these tariffs can shift over time, so you’ll need to regularly check your tariff to ensure you’re getting a competitive rate.

 

If you own a storage device capable of importing and exporting electricity – such as a household battery or an electric vehicle – you could benefit from the SEG. Your potential SEG tariff supplier can advise you on this.

In the UK, the value-added tax (VAT) rate on most goods and services is 20 per cent. But as part of the UK government’s efforts to encourage energy efficiency and the adoption of renewable energy sources, certain energy-saving materials and equipment, including the best solar panels, qualify 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 solar panel provider.

Several other organisations have plans in place to help finance solar panel installations.

Sunsave has been installing solar panel systems since 2022. As part of the government’s push towards renewable energy, the company has received funding for its Electric Roof project. Designed to make solar panels affordable for more homeowners, Sunsave Plus is a subscription service. Monthly fees starts at £69 (there are no upfront costs).

Sunsave’s subscription plan includes a 20-year maintenance and monitoring service, battery and inverter replacements and access to tariffs for varied electricity rates – all of which can increase your savings.

How to apply to Sunsave Plus

It’s easy to apply for the scheme on Sunsave’s website, but bear in mind that there’s currently a waiting list.

Although there aren’t many grants for solar panels in Scotland, Scottish residents can take advantage of schemes such as the Home Energy Grant and Loan Scheme, as well as ECO4. If you’re looking for a Welsh government grant for solar panels, the Warm Home Nest scheme offers free advice, and eligible homeowners could receive financial assistance for solar panel installation. While there are no specific grants for solar panels in Northern Ireland, homeowners can still save thanks to the zero VAT scheme and the Barclays Greener Home Reward.

How to avoid scam schemes

During our extensive research into the various funding schemes and government grants for solar panels, our experts found several websites that claimed to offer government-backed funding. However, on further investigation, we found these were not linked to any official programme. To protect yourself from falling victim to scam solar panel schemes and ensure you’re participating in legitimate, beneficial government grants, be sure to follow these simple steps:

• Be wary of unsolicited offers: Exercise caution with unsolicited calls or emails offering solar incentives. Government agencies typically don’t target homeowners in this way
• Seek official websites: For any offers related to government schemes, check the official government or grant websites for confirmation and details
• Verify identities: If you’re suspicious, confirm the identity of any company claiming to offer government grants or free solar panels. Genuine representatives should have no issue providing you with official documentation
• Contact authorities: If you’re uncertain about the legitimacy of any company or offer, contact the relevant government departments or consumer protection agencies for advice

Several solar panels grants have recently expired. These schemes typically had fixed durations or funding limits, so once a certain date was reached or the available funding was exhausted, the grant was terminated and is no longer open to new applicants. Below are a few examples of schemes that recently expired.

The FiT was a UK government scheme aimed at encouraging the uptake of a range of small-scale renewable and low-carbon electricity generation technologies.

Under the scheme, homeowners who installed renewable electricity systems, such as solar panels, wind turbines or hydroelectric power, could receive payments from their energy supplier. Payments were based on the electricity they generated and used themselves, as well as for any surplus energy they exported back to the national grid.

Although the scheme closed to new applicants in March 2019, existing contracts continue to be honoured for a maximum of 20 years.

Our experts answer all your burning questions about government grants for solar panels