Solar panel grants in the UK (2024 guide)

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Every week, in excess of 3,000 solar panel installations are being carried out, according to the industry association Solar Energy UK, with homeowners keen to take advantage of the electricity bill discounts solar power offers. However, it’s perfectly possible to make even larger savings with solar panel grants. 

Renewable energy has been on the agenda with global governments for many years, and through the Build Back Greener programme, the UK aims to reach net zero greenhouse gas emissions before 2050. As a result, several schemes are in place to make solar panels for homes more affordable. This is good news for the environment and also for homeowners. 

This article explains what grants and other finance options are available, who’s eligible, how to apply, and how much you can save.

Can you still get solar panel grants?

Although several UK government schemes have now closed, and others don’t cover solar panels, some grants are available that will bring solar panel installations down in price. Here’s an outline of some of the schemes available across the UK.

UK Solar panel grants	Running time	Regions covered	Potential savings
Energy Company Obligation 4 (ECO4)	April 2022 to March 2026	England, Scotland, Wales	Free or partially free solar panels
Local Authority Eligibility Flexibility (LA Flex)	Ongoing	Local authority dependent	Varies depending on local authority
Warmer Homes Scotland	Ongoing	Scotland	Free or partially free solar panels

Loans and other financial schemes also exist to make solar panels easier to afford in the initial instance and increase savings further down the line.

Financial assistance and saving schemes	Running time	Regions covered	Potential savings
Green Deal Loan	Ongoing	England, Scotland, Wales	Finance plans are available through providers to pay the loan back
0% VAT	April 2022 to March 2027	England, Scotland, Wales	20% saving on the cost of solar panels
Barclays Greener Home Reward	Pilot scheme until May 1, 2024	England, Scotland, Wales, Northern Ireland	£1,000 towards the cost of solar panels
Smart Export Guarantee (SEG)	Ongoing	England, Scotland, Wales	Up to 34p per kWh

The Energy Company Obligation (ECO4)

Following the previous government scheme, ECO3, the Energy Company Obligation (ECO4) opened in July 2022 and will run until March 2026. It aims to tackle fuel poverty and rising energy costs while reducing carbon emissions; to date, more than 3.5 million homes have received improvements through the ECO scheme. 

Energy suppliers that sign up for ECO4 will advise homeowners and private and social housing tenants on energy-saving improvements they can make, including solar panels and new boilers. The companies are then obligated to fund and install these projects. As ECO4 is a grant, the money doesn’t have to be repaid. 

If you are in receipt of any of the following benefits, you are eligible to apply for an ECO4 grant:

• Universal Credit (UC)
• Housing Benefit
• Income-based Jobseekers Allowance (JSA)
• Income-related Employment & Support Allowance (ESA)
• Income Support (IS)
• Credit Working Tax Credit (WTC)
• Child Tax Credits (CTC)
• Pension Credit Guarantee
• Pension Credit Savings Credit

You don’t need to apply to your current electricity provider and can approach the company that best suits your requirements. Obligated suppliers include:

Energy suppliers offering ECO4
British Gas	Outfox The Market
E	OVO Energy
E.ON	Scottish Power
Ecotricity	Shell Energy
EDF	SO Energy
ESB Energy	The Co-Operative Energy
Octopus Energy	The Utility Warehouse
Outfox The Market	Utilita Energy

Source: UK Energy Support

 

Local Authority Flexible Eligibility (LA Flex)

As more than 46% of fuel-poor households are not in receipt of benefits, according to the ECO4 report, the government has increased the scope of local authorities to fund energy efficient home upgrades. This allows local authorities to widen the eligibility criteria, tailoring them to their respective area. More residents are now able to apply, and many councils are awarding funds based on low incomes, health, age, vulnerability to cold weather, and the energy rating of properties. Under most authorities, properties in council tax band D and below are more likely to receive a LA Flex grant. 

LA Flex is open to both private tenants and homeowners, and applications can be made to your local authority.

Warmer Homes Scotland

The Scottish Government’s Warmer Homes Scotland scheme delivers energy-saving home improvements for Scottish homeowners and private tenants who have lived at the same address for a year or more.  

Assessors advise on a range of suitable improvements, which could include solar panels, and in most cases, the cost is met by the government. If you are required to contribute, there are interest-free loans available to cover this. 

To be eligible, you must: 

• Be a homeowner or the tenant of a private-sector landlord
• Live in the home as your main residence
• Have lived there for at least 12 months (unless in receipt of a DS1500 or BASRiS form)
• Live in a home with a poor energy rating—this will be assessed by a surveyor
• Live in a home that meets the tolerable living standard set out in the Housing (Scotland) Act 2006 or, where the home does not meet the tolerable living standard, this will not impact on the effectiveness of the measures recommended for installation under the scheme
• Householders must not have received support for energy efficiency improvements through Warmer Homes Scotland funding in the last five years

You must also meet one of the following criteria:

• Be 75 or over and have no working heating system 
• Be 16 or over (working age) and be in receipt of a passport benefit or income-related benefit

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Green Deal Loans

Although the original Green Deal loan scheme closed in 2015, loans are still available through a registered Green Deal provider. The difference between a Green Deal loan and a regular loan is that the former can be paid back through your electricity bill, with the repayments never exceeding the savings you are expected to make on your bill by installing energy-saving improvements.

As the residents of the property benefit from energy efficient upgrades, if the current homeowner moves home, the new occupier—or whoever pays the energy bills on the property—takes on the repayments.

0% VAT on solar panels

Solar panels and other energy efficient measures, such as heat pumps, will have no VAT until 2027. This is part of the UK government’s move to incentivise homeowners to switch to renewable energy sources.

Barclays Greener Home Reward

Under the Greener Homes Reward plan, if you have an existing residential mortgage with Barclays, you could be eligible for help towards the cost of solar panels and other renewable energy home improvements. 

Although a pilot scheme at present and set to run until May 1, 2024, homeowners can receive £1,000 towards the cost of solar panels. The application criteria include: 

• Only one application per household
• Must be your primary residence
• Must not be in mortgage arrears at the time of applying
• Must pay your mortgage by direct debit
• Installation must be carried out by a TrustMark-registered business or tradesperson

Smart Export Guarantee (SEG)

The Office of Gas and Electricity Market’s (Ofgem) Smart Export Guarantee allows you to sell any electricity that is generated by your solar panels and is surplus to your family’s requirements to the National Grid. Smaller electricity suppliers might not offer this export tariff, but many larger providers do, and you don’t need to choose the company that supplies your electricity from the grid. 

It’s worth shopping around, as electricity suppliers offer different tariff rates, ranging from £0.01 per kWh to £0.34. However, the higher tariffs are often reserved for providers’ existing customers.

Supplier	SEG tariff	Rate per kWh	Variable or fixed
Octopus	Agile Outgoing	34p	Variable
Octopus	Outgoing Fixed	15p (4.1p if not a customer)	Fixed
EDF	Export Variable Value	5.6p (3p if not a customer)	Variable
E.on	Next Export	5.5p if E.on installed the system (3p if not)	Fixed for 12 months
Scottish Power	Smart Export Variable Tariff	5.5p	Variable
Ovo	Ovo SEG Tariff	4p	Fixed for 12 months
Shell	SEG V1.1 Tariff	3.5p	Variable
SSE	Smart Export Tariff	3.5p	Variable
British Gas	Export and Earn Flex	3.2p	Variable
Utility Warehouse	UW Smart Export Guarantee	2p	Variable

Correct at time of publishing.

In order to receive the export rate under SEG, there are several factors to consider:

• An export meter must be installed
• There must be an export meter point administration number
• Installation must be carried out by a Microgeneration Certification Scheme (MCS)-accredited installer
• The system’s total installed capacity (TIC) must be under 5 megawatts

How much can I save through solar panel grants?

By applying for a grant, homeowners can maximise the savings delivered by solar panels. The amount you can receive is dependent on a number of factors and varies on a case-by-case basis. If you’re applying for an ECO4 grant, your solar panels and the installation should cost you nothing or a small percentage of the price. For Scottish residents, the situation is the same through the Warmer Homes Scotland grant, providing you fulfil the criteria.

What solar panel grants are available for landlords?

As a private landlord, you may be entitled to solar panel grants, saving your and your tenants money and making your property more appealing to prospective tenants.

Solar panels also help your property comply with the government’s new legislation regarding energy ratings. From 2025 all newly rented residential properties must have a rating of C or above, and all rental properties must comply by 2028. 

Energy Company Obligation 

If your tenants are considered to fall under the low income bracket or are in receipt of the benefits listed above, they could be eligible for the ECO4 solar panel grants. The eligibility of the tenant is considered for ECO4 home improvements rather than that of the landlord. Social housing tenants are not eligible. 

Your tenant requires your written consent to apply. 

Local Authority Flexible Eligibility

Designed as an extension to ECO4, LA Flex also allows tenants to benefit from energy efficient measures, providing they obtain consent from their landlord. The scheme isn’t available for social housing tenants.

Warmer Homes Scotland

For privately rented properties in Scotland, tenants may apply for a grant, providing the landlord consents.

Which types of solar panels are available through grant schemes?

Although there are three main types of solar panels for residential properties, homeowners generally choose either monocrystalline or polycrystalline panels. 

• Monocrystalline solar panels are produced from wafers of a single pure silicon crystal and are typically black in colour. Whilst they are the most efficient panel, they are also costly
• Polycrystalline solar panels consist of multiple silicon crystals melted together. These panels tend to be less efficient, but are more affordable 
• Passivated Emitter and Rear Cell (PERC) panels are designed for smaller roof spaces. They are highly efficient, and only slightly more expensive than monocrystalline panels. However, they are a new technology and are currently harder to locate

Monocrystalline, polycrystalline, and PERC panels are all available with a solar panel grant, and your installer will talk you through your best options based on your energy needs.

What financial assistance is available through solar panel installers?

Many solar panel installers and energy suppliers offer financial assistance to help homeowners fund their solar systems. E.ON, for example, offers 0% finance and a range of payment options, while Octopus has several financial options available, including money off incentives. Contact your energy provider for details of what they are offering customers.

Solar panel grants FAQ

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