UK Solar Panel Grants in 2026 Explained

Grants for solar panels are available in 2026, and they’re helping thousands of UK homeowners cover the cost of installing solar panels. Some of these schemes and grants offer full funding, others offer some funding, but either way, it’s worth knowing what schemes and grants you can take advantage of if you’re looking to install solar panels for your home or business.

This guide runs through the main options, who they’re for, and how to apply. We’ll also explain newer schemes like ECO4 Flex, 0% VAT, and SEG payments, along with other things that aren’t often explained in enough detail.We’ve already helped secure over £1 million in funding for homes across Yorkshire and the North. If you’re thinking about getting solar panels, get a free quote to see what support you could get.

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Table Of Contents

• What Grants Are Available for Solar Panels in the UK?

• Am I Eligible for Free Solar Panel Grants?

• ECO4 Scheme

• ECO4 Flex

• The Warm Homes Local Grant

• Smart Export Guarantee (SEG)

• 0% VAT

• Are There Any Grants for Replacing Existing Solar Panels?

• What Do I Do If I Don’t Qualify for Any Solar Panel Grants?

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What Grants Are Available for Solar Panels in the UK?

There’s never been a better time to get solar panels, especially with a range of UK government grants for solar panels making installation more affordable. Here’s a breakdown of the main ones worth knowing about:

Scheme / Grant	What Is It?	Who Is It For?
ECO4 Scheme	A government-funded scheme that helps cover the cost of installing solar panels (and other energy upgrades) for eligible households.	Low-income households receiving certain benefits, or living in inefficient homes.
ECO4 Flex	A local authority-led version of ECO4. Offers the same support but with more flexible eligibility criteria set by your council.	Households that don't qualify for ECO4 but are still considered fuel poor.
Warm Homes Grants	A series of local government grants that vary by region. Some cover solar panel installation or upgrades.	Depends on your local council, often aimed at low-income or vulnerable residents.
Smart Export Guarantee (SEG)	Lets you earn money by exporting unused electricity from your solar panels back to the grid. Paid by your energy supplier.	Anyone with an MCS-certified solar system and a smart meter.
0% VAT Scheme	Removes the VAT on domestic solar panel and battery installations, reducing the upfront cost by 20%.	All UK homeowners (automatically applied by your installer).

Each scheme has its own eligibility criteria, funding limits, and application process. Some are based on income or benefits, while others are open to all UK homeowners. We will go into more detail on this later in the article.

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Am I Eligible for Free Solar Panel Grants?

Eligibility can be a bit of a grey area. Each scheme has its own set of requirements, and some are stricter than others. That said, if you tick any of the boxes below, you might qualify for some of these solar panel grants:

• Your EPC rating is D or lower – Many schemes prioritise homes that aren’t energy efficient.

• You live in a qualifying area – Local councils sometimes offer their own solar grants, which can vary by postcode.

• You’re receiving certain benefits – This could include Universal Credit, Income Support, Child Tax Credit, or other benefits, depending on the scheme.

• Your household income is under £31,000 – This is the current threshold for ECO4, but other schemes may differ slightly.

• You’re classed as vulnerable – Households with young children, elderly residents, or people with long-term health conditions may also qualify.

Eligibility is more flexible than many people think, especially with local authority-backed schemes like ECO4 Flex. And even if you don’t meet every part of the criteria, partial funding may still be available.

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ECO4 Scheme (Energy Company Obligation)

The Energy Company Obligation (ECO4) requires large energy suppliers to fund energy efficiency upgrades for eligible homes. This can include insulation, heating upgrades, and in some cases, solar panel installations. ECO4 launched in 2022 and runs until March 31st 2026.

Unlike some earlier schemes, ECO4 puts a stronger focus on whole-house improvements and low-carbon technologies. That means solar panels are more commonly offered as part of a wider package, for example, solar plus insulation or air source heat pumps.

Who is it for?

According to OFGEM, you may be eligible for the ECO4 scheme if any of the following things apply to you, and you own your own home. If you don't own your home, you must have permission from your landlord.

1. Help to Heat Group (HTHG) Benefits Route

You’ll be eligible if someone in your household receives at least one of the following benefits:

• Universal Credit (UC)

• Child Tax Credit (CTC)

• Working Tax Credit (WTC)

• Income-based Jobseeker’s Allowance (JSA)

• Income-related Employment and Support Allowance (ESA)

• Income Support (IS)

• Housing Benefit

• Pension Credit Guarantee Credit (PCGC)

• Pension Credit Savings Credit (PCSC)

• Child Benefit (within income thresholds)

Also eligible: Households in England, Wales or Scotland that receive the Warm Home Discount (Core Group 1 or 2).

2. Social Housing

If you live in social housing with an EPC rating of D, E, F, or G, you may qualify. But the measures allowed depend on your rating:

• D-rated homes: Only eligible for insulation and innovation measures

• E-G-rated homes: Eligible for a wider range, including first-time central heating and renewable heating

3. ECO4 Flex Route

Your local authority or energy supplier can refer your home if it meets certain vulnerability criteria, including:

• Low income not receiving benefits

• Vulnerability to cold (due to age, disability, or illness)

• Fuel poverty risk

How to Apply for the ECO4 Grant

If you think you're eligible for ECO4 funding, you can apply directly through one of the obligated energy suppliers or via the GOV.UK website. Below is a full list of current suppliers participating in the scheme, along with how to contact them:

The full list of obligated suppliers includes: 

• British Gas: application portal

• E (Gas and Electricity): Email ECO@E.org  

• E.ON Energy: application portal

• Ecotricity: Email compliance@ecotricity.co.uk  

• EDF Energy: application portal

• Octopus Energy: application portal

• Outfox the Market: email hello@outfoxthemarket.co.uk or call 0800 103 2702

• OVO Energy: application portal

• Scottish Power: application portal

• Shell Energy: email eco@shellenergy.co.uk 

• SO Energy (including ESB Energy): application portal or email eco@so.energy 

• The Utility Warehouse: call 0333 777 0777 

• Utilita Energy: application portal

Alternatively, you can also apply through the Gov UK website, or get in contact with us if you need help applying for any of these grants. 

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ECO4 Flex

If you don’t receive benefits but still struggle with your energy bills, you might be eligible for the ECO4 Flex scheme. Designed to help more households qualify for funding, this scheme allows local councils, devolved governments, and energy suppliers to refer eligible homes for solar panel grants and other improvements, even if the standard criteria aren’t met.

Who Can Qualify Under ECO4 Flex?

To qualify, your home must be energy inefficient, usually with a low EPC rating (D, E, F or G). From there, eligibility falls into two main referral routes:

• Local Authority/Devolved Government Referrals

• Energy Supplier Referrals.

Local Authority or Government Referrals:

You may qualify if:

• Your combined gross annual household income is £31,000 or below

• A member of your household suffers from a health condition that makes them vulnerable to the cold, such as:

  • Cardiovascular conditions

  • Respiratory diseases

  • Limited mobility

  • Immunosuppression

Energy Supplier Referrals:

You may qualify if you live in an energy-inefficient home and meet any of the following:

• You're on a non-pre-payment meter and have been in fuel debt for over 13 weeks.

• You’re on a pre-payment meter.

• You’ve received discretionary or friendly credit in the last 13 weeks.

• You’re in a debt repayment plan with your energy supplier.

• You’re repaying fuel debt via third-party deductions.

It is also worth noting that Citzens Advice and Citizens Advice Scotland can also refer households for this scheme.

How to Access ECO4 Flex

You can’t apply directly to ECO4 Flex, but here’s how to get referred:

1. Contact your local council or devolved government to see if they’re participating in ECO4 Flex.

2. If eligible, they’ll refer your household to a participating supplier.

3. You may also qualify via your energy supplier, if you meet any of the criteria listed above. 

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The Warm Homes Local Grant

The Warm Homes Local Grant is a council-led scheme aimed at reducing energy bills and improving home energy efficiency for low-income households. Unlike national schemes like ECO4, the Warm Homes Grant is administered locally and supported by government funding initiatives such as the Local Authority Delivery Scheme (LAD) or the Home Upgrade Grant (HUG). Each council manages its own programme, so grant names and application processes may vary.

What Is the Warm Homes Grant?

Funding typically supports:

• Solar PV systems (panels)

• Insulation measures (loft, cavity wall, solid wall)

• Heating system upgrades

• Other low-carbon technologies

Some grants offer full coverage of installation costs, while others provide partial funding, depending on your financial circumstances.

Who Is It For?

Although each council sets its own rules, common eligibility requirements include:

• Living in England

• Having a combined annual household income of £36,000 or less

• Owning or privately renting a property (not social housing)

• Living in a home with an EPC rating between D and G

Many councils also consider health conditions made worse by cold homes, and some prioritise households not connected to the gas grid. Each local scheme has different criteria, always check with your local council for the most accurate and up-to-date details.

Want the latest Warm Homes Fund update?

The Warm Homes Local Grant is one of the key routes being talked about under the wider Warm Homes Fund. If you want a clearer view on what may be covered and how to prepare, read our Warm Homes Fund guide for homeowners.

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Smart Export Guarantee (SEG)

SEG was introduced in 2020 to replace the now-defunct Feed-in Tariff (FiT). Under this scheme, SEG licensee suppliers (i.e. energy companies with over 150,000 customers) must offer at least one tariff to eligible exporters. These payments must always be above zero and are based on actual export meter readings.

The SEG is available for:

• Solar photovoltaic (PV) systems

• Wind turbines

• Hydro systems

• Anaerobic digestion (AD) systems

• Micro combined heat and power (micro-CHP, up to 50kW)

Systems must not exceed 5MW in capacity and must be located in Great Britain.

Who Is It For?

Anyone with an eligible renewable energy installation and the appropriate metering equipment can apply. You must have:

• A certified installation (usually MCS certification)

• An export meter, such as a smart meter capable of tracking exported electricity

• A system based in England, Scotland or Wales

There’s no need to be an electricity customer with the same supplier offering your SEG tariff, although some companies offer better rates to existing customers.

How to Apply

To apply for SEG:

1. Choose your SEG licensee supplier.

2. Ensure your system is MCS certified.

3. Make sure you have a smart meter or an eligible export meter installed.

4. Apply through the supplier’s application process.

5. Wait for your Export MPAN (Meter Point Administration Number) to be issued (can take 1–4 weeks).

6. Submit your first meter reading (usually a photo is required).

7. Start receiving payments for exported electricity.

Each supplier’s application process varies slightly, and some will offer higher export rates to their own customers, so it’s worth reviewing the full terms.

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 0% VAT

Since April 2022, government grants for solar panels have been complemented by a generous 0% VAT rate on energy-saving materials, including solar panels. This tax incentive can knock hundreds of pounds off your installation costs, and it’s available until at least March 2027.

This scheme removes VAT charges from the supply and installation of qualifying energy-saving materials in residential properties. That includes solar photovoltaic (PV) panels, heat pumps, and solar battery storage systems.

But there’s a key condition: to qualify for 0% VAT, the supply and installation must be completed by the same provider. If you buy the panels from one supplier and use another for installation, you’ll be charged 5% VAT on labour costs. Similarly, repairs or maintenance after the initial install are also subject to 5% VAT.

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Are There Any Grants for Replacing Existing Solar Panels?

If you already have solar panels installed and you're wondering whether government funding for solar covers replacements or upgrades, you're not alone. As of 2025, support for replacing old or underperforming systems is more limited than for new installations, but there are still some options.

Limited Support Under Most Schemes

The majority of solar subsidy programs in the UK, such as ECO4 or the SEG, are geared towards first-time installations. These schemes are designed to encourage the uptake of photovoltaic installation support, rather than to maintain or replace existing ones.

For example:

• ECO4 generally only covers first-time solar PV systems.

• SEG applies only to systems already exporting electricity; it does not offer financial support for replacements.

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What Do I Do If I Don’t Qualify for Any Solar Panel Grants?

If you’re not eligible for solar panel grants in the UK, here are some other options to consider:

• Finance your installationSpread the cost with fixed-interest loans from solar providers.

• Lease solar panelsPay monthly to use panels without buying them outright (note: you won’t own the system).

• Join a community solar projectShare the benefits of a single solar array with others in your area.

• Improve home energy efficiencyUpgrade insulation, appliances, and draft-proofing to cut energy usage.

• Buy refurbished or second-hand panelsSave money by purchasing panels from trusted sellers at lower prices.

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Which Scheme Is Right for You?

Choosing the right solar panel grant for you depends on your home, income, location, and energy needs. Here’s a quick recap to help you decide:

• Low-income households or those on qualifying benefits may find the ECO4 or ECO4 Flex schemes most suitable.

• If you already have solar panels, look into the SEG for payments on exported electricity.

• If you’re replacing an old system, some local schemes or energy providers may still offer support, it’s worth contacting them directly.

• Even if you're not eligible for any grant, financing, leasing, or second-hand panels can still bring solar within reach.

Each scheme has its own eligibility criteria, application process, and benefits, so take your time, compare options, and always double-check with your local authority or energy supplier before committing to anything.

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 Looking to Get Solar Panels in 2026?

We’re not just here to explain your options; we’re trusted solar panel installers who’ve helped customers across the UK unlock over £1 million in government funding. Whether you're eligible for ECO4, SEG, or local schemes, we know exactly how to guide you through the process from start to finish.

• We’ll check what you qualify for

• We’ll help you apply — whether it’s through your supplier or council.

• We’ll supply and install your solar panels, ensuring you benefit from 0% VAT where eligible.

• And we’ll make sure everything’s done to MCS standards, so you can access schemes like SEG.

Get in touch today to get your free quote, and we’ll help you find the right grant and take care of the full installation.

Speak to a Local Solar Expert

We’ll assess your options and build a tailored proposal with transparent pricing and savings modelling. As solar battery experts, with certification for Tesla Powerwall UK installation, we can include storage if it strengthens the case.

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