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Solar panel grants make switching to green, renewable energy cheaper and easier. Find out if you qualify in 2024.
Understanding solar grants can be a complex and confusing process, so our experts have researched every available grant to provide you with straightforward information. Whether you’re looking for free solar panels or hoping to reduce your energy bills by over £1,000 a year, our comprehensive guide will help you understand your options and make informed decisions.
We have assessed which solar panel grants and other incentives are available in the UK, including who qualifies and how to apply.
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“I’ve dedicated years to researching solar grants. I know how challenging the process can be, but I’m here to simplify it for you. In the sections below, I explain each grant in detail, looking at the eligibility criteria and ensuring you have all the necessary information to take full advantage of these opportunities,
Additionally, I’ll be covering Labour’s new residential solar grants as soon as they become available, helping you stay updated on the latest support.”
In the UK, there are currently several solar panel grants and incentives available for homeowners to encourage the use of renewable energy and reduce energy bills in the long run.
| Name of grant | Run time | Entity managing the grant | UK region | Property EPC rating | Size of grant awarded |
|---|---|---|---|---|---|
| Energy Company Obligation 4 (ECO4) inc LA Flex | April 2022 – March 2026 | UK Government via local authorities | England, Scotland, and Wales | E – G | Up to 100% |
| Home Upgrade Scheme (HUG2) | April 2023 to March 2025 | UK Government via local authorities | England | D – G | Local authority dependent, but households could receive up to £18,000 |
| Home Energy Scotland Grant and Loan Scheme | Closed for solar applications 6 June 2024 | Scottish Government | Scotland | N/A | £6,000 for solar installation or £5,000 for solar water heating system. Rural households can claim up to £18,000. |
| Welsh Government Warm Homes Nest Scheme | Ongoing | Welsh Government | Wales | E or less, or D or less if you or a household member has an eligible health condition | Up to 100% |
| Solar Together (Community solar purchasing scheme) | Closing dates vary depending on local authorities | UK Government via local authorities | England | N/A | Members typically pay 30% –35% less than the average cost of a solar system |
Solar grants often provide funding that covers only specific solar energy system components, such as solar panels, inverters, and installation costs. However, these grants typically exclude battery storage or advanced monitoring systems.
With a solar panel grant, your savings can vary. In some cases that could reduce costs by as much as £18,000 or even eliminate the cost of solar panels entirely. This means you can start lowering your bills immediately.
A grant is money that the Government or institutions provide to individuals, businesses or projects for a specific purpose. Since grants do not usually need to be repaid, they are a valuable source of funding for various initiatives. With regard to solar energy, grants are often used to cover at least part, sometimes all, of the cost of installing solar panels, inverters and other essential components.
Specific eligibility requirements usually apply to grants, so applicants must demonstrate that they meet such criteria.
Meanwhile, a scheme is a structured programme or plan that is designed to achieve specific objectives and often involves financial incentives, regulatory measures or support mechanisms. Although schemes can include grants as part of their structure, they may also offer other forms of assistance, such as loans, rebates or tax incentives.
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Managed by Ofgem, the UK Government’s Energy Company Obligation (ECO) scheme focuses on improving the country’s most energy-poor homes — particularly low-income and vulnerable households. With this grant, the larger energy suppliers must provide energy-efficiency measures to UK homes. As well as solar panels, the ECO4 grant covers other energy-efficient improvements, such as insulation, heating systems and double glazing.
An extension of the ECO4 grant, Local Authority Flexible Eligibility (LA Flex) enables local authorities to provide funding to low-income and vulnerable households who don’t receive income-related benefits but require energy-efficiency improvements.
Depending on the applicant’s eligibility and specific circumstances, the ECO4 grant can cover up to 100 per cent of the cost of installing solar panels. In some cases, the grant has covered the cost of multiple energy upgrades costing more than £80,000. This may include a single property receiving full insulation, a new heating system and solar panels.
The amount awarded per grant varies depending on the property and the circumstances of the homeowner.
The ECO4 grant is available in England, Scotland and Wales; however, it is currently unavailable in Northern Ireland.
You could be eligible for the ECO4 grant if you receive:
To qualify for ECO4, the Child Benefit income threshold depends on how many children you have and whether you’re a single- or 2-parent household.
For single-parent households:
For 2-parent households:
You may also be eligible for ECO4 if you receive Department for Work and Pensions benefits — regardless of whether you receive Universal Credit. This also applies if you receive disability benefits, including the Disability Living Allowance and Personal Independence Payment.
The ECO4 grant primarily focuses on owner-occupied homes, but it can also support energy-inefficient social housing and privately rented properties, provided the property owner allows it.
Properties with an EPC rating of D or above are not eligible for the ECO4, and any improvements made to homes rated F or lower should raise them to an EPC rating of at least D.
LA Flex allows local authorities to determine a household’s eligibility for energy-efficiency improvements.
This is usually based on the assumption that you live in a property requiring energy-efficiency upgrades and one of the following applies.
Note that to be eligible for LA Flex, private tenants need their landlord’s permission.
In a survey carried out by FMB, 16 per cent of respondents received their solar panel installation through ECO4 or LA Flex grants, making these two of the most popular funding methods.
The energy company or grant administrator pays the approved installers directly. If the ECO4 grant does not cover the full solar panel installation cost, you can arrange to pay the remaining balance, either directly to the installer or through a financing plan.
In most cases, the grant covers the costs upfront, so you won’t have to pay for the approved installations yourself.
The ECO4 grant is scheduled to run until March 2026.
There are several steps to complete when you’re installing energy efficient home improvements through the ECO4 grant. The process from application to installation 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, or you can assess your eligibility by completing the ECO4 eligibility questionnaire. A surveyor will then evaluate your property and determine whether your home is suitable for solar panels.
There are several documents you’ll need to apply for the ECO4 grant.
Identification documents
Proof of income or benefits
Energy bills
Proof of ownership or tenancy
Property information
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.
Local authorities administer HUG2. Each of them sets its own eligibility requirements and decides which home improvements are available; however, each area has similar criteria and energy-efficient upgrades. Individual authorities also decide how much funding is available, with some regions offering up to £18,000.
The Government has given local authorities up to £700 million to roll out HUG2 to eligible households. Each authority awards different amounts, but the average is around £10,000, which you can use for energy-efficient home improvements, such as low-carbon heating, insulation and solar panels.
HUG2 is only available for English local authorities that have signed up for the grant.
Find your local authority here.
You must be a homeowner or private tenant to qualify for a HUG2 grant, and you must meet the following criteria.
You must also meet one of the following income criteria.
Landlords with four or fewer properties can apply if their tenants meet the eligibility criteria. However, they are required to contribute at least one-third of the cost of the upgrades, in addition to the funding provided.
Under the HUG2 scheme, the installer receives the funding directly.
You should complete any upgrades under the HUG2 scheme by 31 March 2025; however, several local authorities state that the applications must be in before that date.
The process of applying for and having your solar panels installed can take two to four weeks, depending on your local authority and the installer’s schedule.
You can apply for HUG2 through your local authority’s website.
There are a number of documents you’ll need to apply for the HUG2 grant.
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 that operates in local council regions in the UK. The scheme aims to make solar power more affordable and accessible for homeowners and small businesses within the UK, and is an increasingly popular way of funding solar panels
Residents and tenants with their landlord’s permission living in a participating council area can register, and solar panel providers then bid for the opportunity to install a group’s solar panels. The process usually results in a competitive installation price, which tends to be lower than an individual household’s quote.
In FMB’s survey, 31 per cent of respondents chose to install their solar panels through Solar Together in 2023, compared to 12 per cent who had panel installations in 2016 or earlier.
Depending on the local authority, the installers’ offers, and the number of households in the group, savings on solar panel installation can vary. However, you can expect to pay between 30% and 35% less than the average for solar panels.
Solar Together isn’t a UK-wide scheme, so check with your local authority to see if it’s available in your region.
By participating in the Solar Together scheme, you can benefit from a streamlined, cost-effective process for installing solar panels as well as the assurance of having a vetted installer and competitive pricing.
You can register your interest with Solar Together on the company’s website.
Note: Energy Saving Trust Scotland has stopped providing funding for solar panel and battery projects under the Home Energy Scotland Grants and Loans Scheme.
If you received your funding referral between 27 June 2023 and 6 June 2024, you can still apply for the installation of solar panels and energy storage systems until 31 July 2024. Applications submitted before 6 June 2024 are being processed as normal.
The Scottish Government has launched a series of grants and loans under Warmer Homes Scotland. In an attempt to combat high energy bills and improve insulation in homes with low energy ratings, this programme funds solar panel installations, provided they’re part of a series of energy-efficient home improvements.
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.
You do not need to receive benefits to qualify for the Home Energy Scotland Grant and Loan Scheme. However, the scheme closed for solar panel applications on 31 July 2024. Funding agreements are valid for nine months, even if this goes beyond that date.
If eligible, you can apply for a grant, an interest-free loan or both.An uplift is available to households in remote rural and island areas as well as off-gas properties, as defined by the Scottish Government’s Urban Rural Classification.
The Home Energy Scotland Grant and Loan Scheme is available across 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.
The installer typically receives the grants directly, while the scheme will usually pay loans into your bank account.
The Home Energy Scotland Grant and Loan Scheme closes on 31 July 2024 for solar panel applications, but you have up to nine months to complete the project.
Here’s the step-by-step process from application to installation:
Initial inquiry and application:
Contact Home Energy Scotland to discuss your interest in the grant and loan scheme and determine your eligibility.
Energy assessment:
An accredited energy assessor will visit your property to conduct a thorough energy assessment. This assessment identifies potential improvements and provides a detailed report on recommended measures.
Approval and financing:
Contractor selection and planning:
Home Energy Scotland will provide a list of approved contractors. Once you’ve chosen one, they will produce a project plan that includes details of the installation and the expected time scale.
Installation:
Following the agreed timeline, the installer fits your solar system, ensuring all work meets the required standards. Once finished, the installer submits documentation for the grid connection to Home Energy Scotland, confirming the completion of the installation and compliance with the grant and loan terms.
Loan repayment:
If you use a loan as part of the financing, you will begin repayments according to the agreed-upon schedule. The terms of the loan will outline the repayment amount and duration.
Contact Home Energy Scotland on 0808 808 2282.
Lines are open Monday to Friday, 8am – 8pm, and Saturday 9am – 5pm.
The Welsh Government’s Warm Homes Nest Scheme provides advice about energy saving; however, eligible households can also get free energy-efficient home improvements, including solar panels. The scheme is open to low-income families and those living in deprived communities across Wales.
Nest advisors can offer free and impartial advice as well as:
Under the Welsh Government Warm Homes Nest Scheme, eligible households could receive free solar panels.
This grant is available to households across Wales.
You could be eligible for free solar panels or other energy-efficiency improvements if you meet all 3 of the conditions below.
With Nest, the installer usually receives the grant directly.
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:
The Scottish Government is discontinuing funding for solar panels and energy storage systems under the Home Energy Scotland Grant and Loan Scheme. They won’t consider any new applications after 6 June 2024 for existing homes or after 1 August 2024 for new buildings.
Anyone who has a funding referral can still apply to Home Energy Scotland, but the deadline for all applications is 31 July 2024.
Keir Starmer’s proposals for a publicly-owned company, Great British Energy, aim to invest in clean and renewable energy as a key component of Labour’s strategy to eliminate fossil fuels from UK electricity production by 2030. 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, schools, and hospitals.
If you don’t qualify for any of these grants, there are several other options available that can help with solar panel costs.
Solar loans allow you to avoid the upfront cost and pay for solar panels over time. These loans are often available through banks, building societies and solar panel installers; however, such 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 lower interest rates, higher borrowing amounts or cash-back offers.
A solar subscription plan allows homeowners to enjoy the benefits of solar energy without the upfront cost of installing solar panels. Several panel providers offer subscriptions and they typically work in one of two ways:
Either option avoids the initial outlay, allowing you to pay a monthly subscription. This often includes maintenance, repairs, warranty and in some cases, replacement batteries.
Installers offering subscription plans include:
This model allows for immediate savings on your electricity bills, with the added advantage of contributing to a greener environment. It’s an appealing choice if you’re looking to switch to solar with no initial investment.
The UK Government introduced the Smart Export Guarantee (SEG) scheme to replace the previous Feed-in Tariff scheme. It took effect on 1 January 2020 and is ongoing. Under the SEG, larger energy suppliers must 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 have an export meter installed and a Microgeneration Certification Scheme certificate or equivalent document.
Some energy-saving materials and equipment (including solar panels) qualify for a reduced VAT rate under the Government’s green incentives. While the rate is typically 20% for energy-saving goods and services, 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.
Several solar panel grants are available to tenants, but these are generally only for those in the private sector, and you must have your landlord’s permission. These funding options include the ECO4 grant and the Home Energy Scotland Grant and Loan Scheme.
An installer can help you identify which solar panel grants are available. Answer the questions below to find a reputable installer to start planning your solar panel system.
You may be eligible for free solar panels through the ECO4 grant or the Warm Homes Nest Scheme, which offers grants that cover up to 100% of the installation costs for low-income households. These programmes aim to improve energy efficiency and reduce energy bills for qualifying homeowners.
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 UK offers communal grants like the Solar Together scheme, a group-buying programme that helps communities collectively purchase solar panels at reduced rates. Local councils and community groups can also access grants and funding for shared renewable energy projects, promoting sustainable energy solutions within neighbourhoods and community buildings.
Scotland has the Home Energy Scotland Grant and Loan Scheme, which provides financial assistance to install energy-efficient measures, which include solar panels.
In Northern Ireland, there are currently no grants that specifically cover solar panel installations. However, residents can explore other options, such as green loans and mortgages. Our experts regularly check for updates and local initiatives in Northern Ireland.
Wales offers grants for solar panels through the Warm Homes Nest Scheme. This provides low-income households in Wales with funding for energy-saving improvements.
In the UK, solar panels cost around £7,000 for an average 3-bedroom home, and including a battery can add £2,000 or more to the total cost. Despite such a significant investment, the potential annual savings of over £1,100 make solar energy appealing, and homeowners can break even in as little as nine years.
The break-even point is typically 9 to 10 years for an average 3-bedroom house, but this depends on system cost, energy consumption, and whether the installation includes battery storage.
A battery reduces the break-even point because it allows homeowners to store excess energy generated by their solar panels. By using this stored energy during non-sunny periods or peak demand times, homeowners can maximise their solar energy, further reducing their reliance on grid electricity and lowering their energy bills. A battery increases the amount of self-consumed solar power, so homeowners recoup their initial investment in the solar panel system more quickly.
Solar panels offer the following benefits.
Yes, pensioners can be eligible for solar panel grants, especially if they meet the specific criteria related to income and energy-efficiency needs. Programmes such as the ECO4 grant and the Nest Scheme in Wales provide grants for low-income households, including pensioners, to improve their home’s energy efficiency and reduce energy bills. Eligibility typically depends on factors such as income level, the property’s EPC rating and existing energy-efficiency measures, so pensioners should check specific grant requirements and apply accordingly.
From April 2022 to March 2027, renewable energy materials such as solar panels qualify for a 0% rate of VAT, which can reduce the cost of installations by an average of £800. In Northern Ireland, you must meet a number of conditions for the 0% rate to apply.
