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Switching to green, renewable energy has never been more affordable thanks to solar panel grants. Find out if you qualify, and take the first step towards solar power.
Solar panel grants can reduce your energy bills by over £1,000 a year, and some government grants, such as the ECO4 scheme, even provide free solar panels to eligible households.
Based on their extensive research and interviews with top grant providers like ECO4, our experts have in-depth insights into the solar panel funding options available in the UK. We detail who qualifies, how to apply, and what to expect from the process for each grant and scheme.
We’ve also surveyed over 2,000 solar system owners to uncover how they financed their installations, providing you with real-world perspectives to guide your own solar journey.
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The average home can save more than £1,100 every year with solar panels!
There are several solar panel grants and incentives currently available in the UK, aimed at reducing the cost of solar panels, your households’ energy bills and encouraging the adoption of renewable energy.
| Name of grant | Eligibility | How much could you get? | Provided by | Run time | EPC rating required |
|---|---|---|---|---|---|
| Energy Company Obligation 4 (ECO4) inc LA Flex | Recipients of various benefits such as Universal Credit | Up to 100% of the costs | UK government | April 2022 to March 2026 | E – G |
| Solar Together | Open to all | You could pay 30-35% less than the average cost of a solar system | UK government | Closing dates vary depending on local authorities | N/A |
| Warm Homes Nest Scheme (Wales) | Recipients of means-tested benefits or low-income households | Up to 100% of the costs | Welsh government | Ongoing | E or less, or D or less if you or a household member has an eligible health condition |
| Home Upgrade Scheme (HUG2) | Recipients of certain benefits (like UC) or low-income households | Up to £18,000 | UK government | April 2023 – March 2025 | D-G |
| Home Energy Grant and Loan Scheme (Scotland) | Self-builders or homeowners who meet the conditions | Loans available for up to £5,000 | Scottish government | Closed for solar panel applications 6 June 2024 | E-G, or D-G if you have an eligible health condition |
Solar grants often only cover specific solar energy system components such as solar panels, inverters and installation costs. Battery storage or advanced monitoring systems are typically excluded from these funding programmes.
How much you can save with a solar panel grant depends on your situation, the area you live in and which scheme you apply to, but in some cases, you can reduce your system costs by as much as £18,000. Eligible households can even get free solar panels under the ECO4 scheme.
A grant is a form of financial support from the government or institutions that typically doesn’t need to be repaid. It can cover all or part of the solar installation costs, provided the eligibility criteria are met. A scheme is a structured programme with specific goals such as increasing solar adoption. It could take the form of a grant, or sometimes loans, tax incentives, or rebates.
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Ofgem manages the UK Government’s Energy Company Obligation (ECO) scheme, which focuses on improving the country’s most energy-poor homes, particularly low-income and vulnerable households. This grant requires bigger energy suppliers to provide UK homes with energy-efficiency measures. The ECO4 grant covers solar panels and other energy-efficient improvements such as heating systems, insulation and double glazing.
Local Authority Flexible Eligibility (LA Flex) is an extension of the ECO4 grant. It enables local authorities to fund low-income and vulnerable households who require energy efficiency improvements but don’t receive income-related benefits.
High living costs, energy prices, and greater grant awareness have resulted in increased applications, with 16 per cent of survey respondents* receiving ECO4 or LA Flex grants for their solar panel installation.
As of September 2024, almost 30,000 ECO4 recipients have installed solar panels.
The ECO4 grant can deliver free solar panels, though the amount awarded depends on eligibility and specific circumstances. In some cases, the grant has covered the cost of multiple energy upgrades costing over £80,000, according to Kevin Henney, Director at ECO4 Hub. This could cover the cost of a single property receiving a new heating system, full insulation and solar panels, for example.
The ECO4 grant is available in England, Scotland and Wales. It is currently unavailable in Northern Ireland.
In order to be eligible for an ECO4 grant, your household’s annual income must be under £31,000.
You also should be in receipt of one of the following benefits:
If the only benefit you are claiming is Child Benefit, there is an upper income threshold based on how many children you have and whether you’re a single- or 2-parent household. You will need to earn under this amount to qualify. For single-parent households:
For single-parent households:
For 2-parent households:
If you receive benefits from the Department for Work and Pensions – regardless of whether you receive Universal Credit – you may be eligible for ECO4. This also applies if you receive disability benefits, such as Disability Living Allowance and Personal Independence Payment.
Although the ECO4 grant focuses on owner-occupied homes, it can also help those in energy-inefficient social housing and privately rented properties, provided the property owner gives permission.
You won’t be eligible for the ECO4 if your property has an EPC rating of D or above. Also, it’s required that any improvements carried out with this grant on a home rated F or lower should raise them to an EPC rating of at least D.
Local authorities use LA Flex to determine your household’s eligibility for energy-efficiency improvements. Their assessment is usually based on the assumption that you live in a property that needs energy-efficiency upgrades and one of the following statements applies.
To be eligible for LA Flex, private tenants will need their landlord’s permission.
If approved, the energy company (or grant administrator) makes a direct payment to the installers. If the ECO4 grant does not cover the full cost of the solar panel installation, you pay the remaining balance directly to the installer or through a financing plan. However, it’s likely the grant will cover the upfront costs, so you won’t have to pay for the installations yourself.
The ECO4 grant will run until March 2026.
When installing energy-efficient home improvements through the ECO4 grant, you have several steps to complete. From application to installation, the process can take as little as two weeks.
Eligibility assessment:
Energy assessment:
Approval and planning:
Installation:
Post-installation:
You can apply directly through your energy supplier, including:
A surveyor will then evaluate your property and determine whether your home is suitable for solar panels.
Identification documents
Proof of income or benefits
Energy bills
Proof of ownership or tenancy
Property information
Solar Together is a group buying scheme for solar panels and batteries which operates in various regions of the UK. The scheme aims to make solar power more affordable and accessible for homeowners and small businesses within the UK.
It’s an increasingly popular way of funding solar panel installations: According to our survey*, in 2023, 28 per cent of respondents chose to install their solar panels through Solar Together.
The scheme is available to homeowners and tenants with their landlord’s permission who live in participating council areas. After interested parties register, solar panel providers then bid for the opportunity to install a group’s solar panels. This auction format results in a competitive installation price, which reduces the costs compared to an individual household’s quote.
Solar Together covers solar panel installations. Unlike a grant, this scheme essentially offers a bulk discount on a group’s solar panels; which makes the overall costs lower than an individual installation.
The savings you can make vary depending on the local authority, the number of households in the group and the installers’ offers. However, through this scheme, you can expect to pay between 30 and 40 per cent less than the average cost of solar panels.
Solar Together isn’t a UK-wide scheme. To see if it’s available in your area, check with your local authority. The organisation is working on expanding the scheme to more regions.
Solar Together offers competitively-priced installations from vetted solar panel installers. The application process is simple and streamlined.
Register your interest via the Solar Together website.
“Group-buying means that everyone gets a better deal. Through our scheme, participants secure average savings of 40 per cent off the typical market price [of solar panels], depending on the installation size. Registering for a Solar Together scheme takes just five minutes, and our help desk is here to support people every step of the way.
“For regions with existing annual Solar Together schemes in place, we are continuing to grow the schemes and are increasing engagement in these areas. We are also launching new schemes in communities up and down the country, most recently in West Yorkshire.”
The Welsh Government’s Warm Homes Nest Scheme provides free energy-efficient home improvements, including solar panels, to eligible households, as well as energy-saving advice. The scheme is open to low-income families and those living in deprived communities throughout Wales.
Eligible households could receive free solar panels through the Welsh Government Warm Homes Nest Scheme.
This grant is available to eligible households throughout Wales.
You could be eligible for energy-efficiency improvements including free solar panels if you meet all 3 of the conditions below.
The installer usually receives the grant directly with Nest.
Contact Nest on 0808 808 2244.
Lines are open Monday to Friday, 9.00am-6.00pm.
Along with your application, you’ll need to include:
Lorraine from Cardiff funded her solar panel system thanks to the Nest scheme. Her home had an EPC rating of F, she is on Universal Credit and her husband, who suffers from heart problems, receives Personal Independence Payments.
“I applied thinking I’d get turned down as it seemed too good to be true, but after two weeks, I heard back. I had to answer some questions and provide proof of income and expenditure, but it was really simple and the person I spoke to was very helpful.
Someone came out to see my house and he said I could have cavity wall and roof insulation, a new boiler, and solar panels. I couldn’t believe that it was all free and wouldn’t make any difference to my benefits.
It took a while to get everything done, and it was a bit of an upheaval, but it’s made a huge difference to our lives now. Our bills are much lower, and last winter was the first one we didn’t worry about.”
Active since April 2023, the Home Upgrade Scheme (HUG2) will continue accepting applications until March 2025. This programme assists low-income families by providing grants for solar panels and other energy-efficient home improvements.
Funding is available for homeowners, private tenants and landlords in England.
HUG2 is administered by local authorities, and each authority sets its eligibility requirements and which home improvements are available. However, each area has very similar criteria and most local authorities offer solar panels as an available upgrade. Each authority also decides how much funding is available, with some regions offering up to £18,000.
From April 2023 to August 2024, over 1,600 homes partially funded their solar installations under HUG2.
The Government has given local authorities up to £700 million of funding to be rolled out to eligible households under HUG2. Although each authority will award different amounts, the average is around £10,000 per approved grant. You can use this money for energy-efficient home improvements such as insulation, low-carbon heating and solar installations – free solar panels may be awarded in certain cases.
Only local authorities in England that have signed up for the grant are eligible to give out HUG2 grants.
Find your local authority here.
To qualify for a HUG2 grant, you must be a homeowner or private tenant, and you must also meet the following criteria.
You must also meet one of the following income criteria.
If you’re a landlord with four or fewer properties, you can still apply if your tenants meet the eligibility criteria. However, in addition to the funding provided, you will need to contribute at least one-third of the cost of the upgrades.
Under the HUG2 scheme, the installer receives the funding directly.
With the HUG2 scheme, you should complete any upgrades by 31 March 2025. However, for several local authorities, the applications must be in before that date.
Depending on your local authority and the installer’s schedule, it can take 2 to 4 weeks to finish the process of applying for your solar panels and having them installed.
You can apply for HUG2 through your local authority’s website.
Identification documents
Proof of income or benefits
Energy bills
Proof of ownership or tenancy
Property information
Note: Energy Saving Trust Scotland has stopped funding standard solar panel and battery projects under the Home Energy Scotland Grants and Loans Scheme. However, a loan of up to £5,000 is available for solar thermal panels and hybrid solar PV/water heating.
To improve insulation in homes with low energy ratings and combat high energy bills, the Scottish Government has launched a series of grants and loans under Warmer Homes Scotland.
Warmer Homes Scotland targets households in the lower-income bracket, including homeowners and private tenants who have lived in their homes for six months or longer.
Solar thermal systems focus solely on heating water by capturing sunlight with thermal collectors, which transfer the heat to a water storage system. They are primarily used for domestic hot water or space heating, offering an eco-friendly way to reduce reliance on conventional heating methods.
A hybrid solar PV/water heating system combines PV panels for electricity with solar thermal collectors for water heating, maximising energy efficiency by utilising daylight for both purposes and reducing overall energy costs.
Although solar panel systems are not covered, solar thermal and hybrid solar PV/water heating systems are, and loans are available for households that pass the affordability and credit checks.
Off-gas properties and households in remote rural and island areas can get an uplift – as defined by the Scottish Government’s Urban Rural Classification.
| Grant funding | Loan funding (interest-free) | |
|---|---|---|
| Solar thermal | Unavailable | £5,000 |
| Hybrid solar PV/water heating | Unavailable | £5,000 |
The Home Energy Scotland Grant and Loan Scheme is available throughout Scotland.
Funding depends on availability and is on a first-come, first-served basis.
You can apply for the Home Energy Scotland Grant and Loan Scheme if your property is in Scotland and one of the following applies.
Eligible applicants also have to pass affordability and credit checks and be able to pay an administrative fee of 1.5 per cent of the total loan amount, to a maximum of £150 per application.
Loans are typically paid into your bank account.
The Home Energy Scotland Grant and Loan Scheme closed on 31 July 2024 for standard solar panel applications, but you have up to 9 months to complete the project. The loan scheme is ongoing.
Here’s the step-by-step process from application to installation:
Initial inquiry and application:
Contact Home Energy Scotland to discuss your interest in applying for a loan and determine your eligibility.
Assessment:
Affordability and credit checks help Home Energy Scotland assess your ability to repay the loan. Affordability checks review your income and expenses, while credit checks examine your borrowing history, including how reliably you’ve repaid debts.
Approval and financing:
Contact Home Energy Scotland on 0808 808 2282.
Lines are open Monday to Friday from 8am to 8pm and Saturday from 9am to 5pm.
Solar panels allow homeowners to generate their own electricity and reduce reliance on the grid, leading to substantial savings on energy bills over time.
Average annual savings from solar panels, including SEG payments
| Property size | System size | Number of panels | Average system cost, including installation and a battery | Annual savings, including SEG payments |
|---|---|---|---|---|
| 1 bedroom | 1.5 kW | 4 | £6,200 | £324 |
| 3 bedroom | 4.5 kW | 12 | £9,600 | £871 |
| 4 bedroom | 6 kW | 16 | £12,000 | £1,099 |
We surveyed over 2,000 people with solar panel systems* to find out how many took advantage of financial incentives. Solar Together, a group-buying scheme available for eligible homeowners across the UK, was the most popular scheme among those we surveyed, with 28% of the vote.
Of the people we surveyed, the top three biggest challenges they faced during or before solar panel installation were: High installation costs (38 per cent); technical issues with installation (37 per cent); and finding a reliable installer (37 per cent). If you’re eligible, applying for a solar panel grant can alleviate the high installation costs involved in solar panel installation.
“Keeping up to date with the latest solar grant news is particularly important in light of the government’s push towards a greener, more sustainable future. Labour’s plans include introducing new incentives and expanding funding for residential solar energy projects.
To ensure you can take full advantage of any new grants and are aware of changes to existing funding, I’ll cover all the latest solar grant news.”
Ed Miliband, Secretary of State for Energy Security and Net Zero under Keir Starmer’s Labour government, has committed to tripling the UK’s solar power capacity by 2030, as well as doubling onshore wind and quadrupling offshore wind.
“I want to unleash a UK solar rooftop revolution,” he said. “We will encourage builders and homeowners in whatever way we can to deliver this win-win technology to millions of addresses in the UK so people can provide their own electricity, cut their bills, and at the same time help fight climate change.”
This heightened focus on renewable energy could see more grants or the extension of existing funding schemes being introduced, allowing more households to benefit from solar power.
The Scottish Government is discontinuing funding for standard solar panels and energy storage systems under the Home Energy Scotland Grant and Loan Scheme. After 6 June 2024, they aren’t considering any new applications for existing homes. For new buildings, the deadline was 1 August 2024.
As a key component of Labour’s strategy to eliminate fossil fuels from UK electricity production by 2030, Keir Starmer’s proposals for the publicly owned Great British Energy aim to invest in clean, renewable energy. The initiative will provide £3.3 billion for the Local Power Plan, which will fund grants and loans for small-scale clean energy projects, such as solar panels on residential properties (including council houses), hospitals and schools.
If you don’t qualify for any grants, you have several other options to help with solar panel costs.
Under the Government’s green incentives, some energy-saving materials and equipment (including solar panels) qualify for a reduced VAT rate. The rate is typically 20% for energy-saving goods and services, but it’s currently set to 0% until 31 March 2027. This applies to the supply and installation of solar panels in England, Scotland and Wales.
The UK Government introduced the Smart Export Guarantee (SEG) scheme on 1 January 2020, and it’s still ongoing. Intended to replace the previous Feed-in Tariff scheme, it ensures that larger energy suppliers offer an export tariff to customers who generate their own renewable electricity via solar panels or wind turbines.
Homeowners with solar systems generating up to 5kW qualify for the SEG scheme. Potential candidates must also install an export meter and have a Microgeneration Certification Scheme certificate or equivalent document.
With solar loans, you can pay for solar panels over time and avoid the upfront cost. Often available through banks, building societies and solar panel installers, these loans may have high interest rates.
Green mortgages are specialised home loans that offer homebuyers or homeowners financial incentives to purchase, build or renovate homes that meet certain environmental and energy-efficiency standards. These incentives can take various forms, such as cash-back offers, lower interest rates or higher borrowing amounts.
A solar subscription plan allows you to avoid the upfront cost of installing solar panels while still enjoying the benefits of solar energy. Several panel providers offer subscriptions, which usually work in one of the following ways.
You can avoid the initial outlay by paying a monthly subscription. This often includes maintenance, warranty and repairs. In some cases, it also covers replacement batteries.
Installers offering subscription plans include:
As well as contributing to a greener environment, this model allows for immediate savings on your electricity bills. So, if you’re looking to switch to solar with no initial investment, this is an appealing choice.
Tenants and landlords can also benefit from solar panel government grants and schemes designed to make properties more energy efficient.
If you’re a tenant and would like solar panels installed on your rental property, the first step is to secure permission from your landlord. Here are our top tips for approaching the conversation:
Installing solar panels in rental properties can have many advantages for landlords.
You may be eligible for free solar panels through the ECO4 grant or the Warm Homes Nest Scheme, which offers grants covering up to 100% of the installation costs for low-income households. For qualifying homeowners, these programmes aim to improve energy efficiency and reduce energy bills.
Non-government sources, such as environmental charities and energy companies, also offer solar panel grants. These organisations often provide funding and incentives for solar panels and other renewables.
The Solar Together scheme is a group-buying programme that helps communities collectively purchase solar panels at reduced rates.
Currently, there are no grants that specifically cover solar panel installations in Northern Ireland. However, residents can take advantage of green loans and mortgages. Our experts regularly check for updates about local initiatives in Northern Ireland.
For an average 3-bedroom home in the UK, solar panels cost around £7,100, £9,600 if you include a battery. However, the potential annual savings of over £1,100 mean you could break even in 9 to 10 years.
Yes, pensioners can qualify for solar panel grants if they meet income and energy-efficiency criteria. Incentives like the ECO4 grant and Wales’ Nest Scheme offer assistance to low-income households, including pensioners. Eligibility depends on income, your home’s EPC rating, and existing energy measures, so pensioners should review requirements and apply as needed.
*Survey of 2,004 solar panel owners conducted by the Federation of Master Builders, June 2024.
