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By applying for a solar panel grant, you could receive heavily discounted or even free solar panels, resulting in annual energy bill savings upwards of £1,100. We recently conducted a survey of over 1,540 Independent readers who own solar panels* to understand how they made the most of the solar panel funding available to them. And almost four in five respondents (79.40 per cent) said solar panel grants were an important part of their decision to go green.
With that in mind, we’ve put together a comprehensive guide on how you can minimise your solar panel costs, whether that’s through ECO4, a solar panel government grant, the Smart Export Guarantee, or one of the UK’s other solar panel funding schemes.
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ECO4 is a government grant managed by Ofgem which places an obligation on medium-to-large energy providers to make energy-efficient upgrades accessible to vulnerable, low-income families living in homes with an Energy Performance Certificate (EPC) rating of D or below.
An ECO4 grant may entitle you to free solar panels as part of wider energy efficiency improvements for your home including boilers, heat pumps and insulation measures. More than 17 per cent of Independent readers who own solar panels took advantage of an ECO4 grant when installing their system*.
The ECO scheme has gone through several phases, each with slight differences in focus and eligibility criteria. Currently in its fourth phase, you could qualify for ECO4 funding if you receive any of the following benefits:
You could be eligible for ECO4 if you receive other benefits from the Department for Work and Pensions, regardless of whether you receive Universal Credit.
The ECO4 grant mainly focuses on owner-occupied homes. That said, if you’re a landlord with private tenants, you can apply for ECO4 on behalf of tenants who receive any of the benefits above. Similarly, you may also be eligible if you live in social housing.
Applying for an ECO4 grant is quick and straightforward; you have to apply directly through the solar panel installers who provide the grant. The application process generally follows the same timeline, no matter which installer you choose.
The Local Authority Flexible Eligibility (LA Flex), also known as ECO Flex, is an extension of the ECO4 scheme. Under this initiative, local authorities decide on household’s eligibility for energy efficiency measures and award them to those that may not have qualified under the national criteria. Eligibility criteria may include the following:
Private tenants can qualify under LA Flex with their landlords’ permission. If you’re eligible, you could be entitled to up to 100 per cent off the cost of your solar panels.
Sarah Blyth lives in Whitstable, Kent, with her two children. Her home had an EPC rating of E, and she receives Universal Credit, which includes Housing Benefit and Child Tax Credit. She talked us through her journey to getting free solar panels.
“I was surprised by how simple it was. I applied online, and the same day I got a call back from the installer to say I had been pre-approved for ECO4 funding. I had to answer a few more questions – all very easy – and, later the same week, got told my home assessment was booked.
“They looked around my house, including the loft, and explained that to take my house from its EPC rating of E to C, I could have insulation, a boiler upgrade and solar panels. It wouldn’t cost me anything, nor affect my benefits, so of course I said yes.
“Within a month, all the work was done! The house is warmer, all the condensation has gone and, thanks to the new solar panels, my electricity bills are almost zero. If you are living in a cold, damp house – like we were – apply for ECO4.”
To get a better understanding of how the ECO4 grant process works, we spoke with Kevin Henney, director at ECO4 Hub.
Independent Advisor (IA): First, please tell us a little about yourself and your role.
ECO4 Hub Director Kevin Henney: I currently serve as Director at ECO4 Hub. I’m responsible for managing and overseeing all the activities related to the ECO4 grant programme. This includes reviewing grant applications, coordinating with local authorities and ensuring the smooth and efficient installation of energy-efficient systems for our clients.
IA: How many grants have been approved over the past 12 months? And have you seen an increase in grant applications during that period?
Henney: Over the past six months, we’ve successfully finished over 60 installations and have more than 100 slated for the near future.
Over the last year, we’ve observed a significant uptick in grant applications. This surge can be attributed to the rising cost of living and energy and increased awareness about the grant.
IA: Can you give us some idea of how much money successful applicants are typically granted? Is there a range or an average amount you can share?
Henney: The amount awarded per grant varies greatly depending on the work required for each property. Our goal under the regulations is to maximise energy efficiency.
We’ve dealt with diverse projects, from single-measure installations, such as a boiler replacement worth £5,000, to comprehensive energy makeovers involving internal wall insulation, loft insulation, an upgrade to an air source heat pump and the installation of solar panels, with a total value exceeding £80,000.
IA: How long does it generally take for an applicant to get their grant approved?
Henney: The approval time for a grant depends on a few factors, but there are two main routes that can be followed:
IA: Once a grant has been approved, what are the next steps for the homeowner? How long does it take from approval to solar panel installation?
Henney: Once a grant is approved and the client confirms they’re happy with the proposed work, we can proceed to installation. In some cases, we’ve even completed installations within the same week of approval.
IA: Are there any frequent mistakes people make when applying that can slow down the grant approval process?
Henney: The most common issues that can delay the process include incorrect spelling of the applicant’s name and not having the necessary documentation for local authority approval, such as a council tax bill. Paying attention to these details is essential to ensure a smooth application process.
IA: What documents are applicants required to submit when applying for the ECO4 grant?
Henney: If you receive benefits, you must sign a consent form, which the Energy Saving Trust verifies, and provide a copy of a utility bill. If you apply under the LA Flex criteria, you’ll need your council tax bill, ID and proof that the annual household income is under £31,000. This evidence may be in the form of a pension statement, three months’ payslips and bank statements or a P60 dated in the last six months.
Solar Together is a community buying scheme for solar panels operating in the UK’s local council regions. The scheme aims to bring together households and local authorities to make solar power more accessible and affordable for homeowners and small businesses.
Our recent survey found that 28.91 per cent of Independent readers who received solar panel funding to buy solar panels used the Solar Together scheme*.
To apply, households simply register their interest (without any obligation to buy), and companies bid for the opportunity to install solar panels for an entire group. This usually guarantees a more competitive installation price, much lower than a single household could typically negotiate on their own.
Once a provider is selected, each of the registered participants receives a personal recommendation tailored to their specific needs. At that point, they can 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 affordable and higher-quality solar panel installations but it also offers full technical surveys and thorough customer service throughout the process.
Homeowners living in a participating council area simply need to register their interest (without any obligation to buy) on Solar Together’s website to apply.
From there, an auction takes place whereby vetted solar installers bid to provide the best price for a group of potential buyers. The winning installer submits a personalised quote for your home. Once the proposal is accepted, the installer will organise a survey of your home, schedule your solar installation and install your solar system on the agreed-upon date.
Tim from Aylesbury, Buckinghamshire had 10 panels installed through Solar Together, as well as battery storage capacity, enabling him to use generated electricity efficiently, reducing reliance on grid-supplied power. He’s saved £405 in the first year alone, alongside the ability to sell back surplus energy to the grid – earning an additional £167.
Here’s what he had to say about the process: “It was really easy. The process came together smoothly from the start, and the installers were very professional. Although there was an upfront cost for the panels, the investment has paid off.”
Operating since April 2023, the Home Upgrade Grant Phase 2 (HUG 2) scheme will continue to accept applications until March 2025. Under the scheme, low-income families can qualify for awards of up to £10,000 for solar panels and other energy-efficient home improvements.
Privately rented homes may qualify; however, to meet the criteria, the landlord may not have more than four properties in their portfolio. The landlord is also required to cover one-third of the total cost of any upgrades.
To be eligible for HUG 2, you must:
If you own your property, check whether your local council offers the HUG 2 scheme. If it does, you can apply directly. If you live in a privately rented property, the application must be made by your landlord.
Introduced by the UK government on 1 January 2020, the Smart Export Guarantee (SEG) replaced the Feed-in Tariffs (FIT) scheme. The SEG scheme dictates that larger energy suppliers must offer export tariffs to customers who generate their own renewable electricity and wish to sell their excess back to the grid.
Anyone who installs a renewable energy system – such as solar panels or wind turbines – with a capacity of up to 5MW can apply for the SEG. Applicants must also have an export meter and an MCS certificate or equivalent document for their solar system to guarantee the quality of the installation. Including a solar storage battery in your system isn’t a requirement for qualifying for the SEG, but it is beneficial to accumulate more energy.
More than half (57.45 per cent) of Independent readers with solar panels export their excess energy using SEG*, a number that jumps significantly if they have a solar battery installed.
To receive payment under the SEG scheme, you must apply directly through an energy supplier that offers a tariff. Energy companies to which the SEG mandate applies are required to offer you a tariff. However, they’re allowed to set the tariff’s terms, which could be either fixed or variable.
Participating companies are listed on Ofgem’s website.
Importantly, your energy supplier doesn’t need to be your SEG tariff supplier. They can be separate entities, so you can choose a supplier with a better SEG tariff than the one which provides your household’s energy.
Remember that these tariffs can shift over time, so you’ll need to regularly review your tariff to ensure you’re getting a competitive rate.
In the UK, the value-added tax (VAT) rate on most goods and services is 20 per cent. As part of the government’s efforts to encourage energy efficiency and the adoption of sustainable energy systems, certain energy-saving materials and equipment, which include the best solar panels, qualify for a reduced VAT rate.
That amounts to a significant saving. For instance, the average 4.5kW system costs £7,100 for the panels and installation. If you had to pay VAT, that’d jump to £8,520. So in this case, zero per cent VAT is saving you £1,420.
Until 31 March 2027, this reduced rate is set to zero per cent. It applies to the supply and installation of solar panels on private homes in England, Scotland and Wales.
There’s no need to apply for the zero per cent VAT scheme, as your solar panel provider should automatically take care of it.
The Welsh Government Warm Homes Nest scheme provides free advice and funding for improving residential energy efficiency. Eligible households may even qualify for free home upgrades, which include solar panel installation.
You may be eligible for free solar panels if you meet all three of the following criteria:
Despite its regional scope, Nest was the second most popular solar panel scheme among Independent readers*. Almost a fifth (18.48 per cent) of solar panel owners who used an incentive scheme benefited from Nest funding.
If you have any questions about the scheme or your eligibility for it, you can call Nest for free advice. The Welsh government’s website also provides information and guidance about the programme.
Our team of solar experts are standing by for announcements from the Labour government on its Warm Homes Plan[1] and the formation of GB Energy.[2]
This plan aims to upgrade every home that needs it to EPC standard C within a decade, dedicating £6.6bn to improve 5 million homes. Details of grants and low-interest loans have yet to be announced, but as soon as they are, we will let you know what’s available, who’s eligible and how to apply.
Several other organisations offer incentives to help UK homeowners finance solar panel installations.
| Scheme | Run time | Eligibility | Potential savings |
|---|---|---|---|
| Barclays Greener Home Reward | Ongoing | First-time claimers with a Barclays residential mortgage who pay by direct debit | £1,000 |
| Effective Home Energy Shield | Ongoing | All UK homeowners (as long as your roof is suitable), including landlords | Subscription service where you buy solar energy without owning the panels |
| Otovo solar subscription | Ongoing | New Otovo customers | Subscription service where you can spread the cost of purchasing solar panels over a period as long as 20 years |
| Sunsave Plus subscription | Ongoing | Homeowners in England and Wales | Subscription service with fixed monthly payments to spread the cost of purchasing solar panels |
| Unbound Energy SunFlex subscription | Ongoing | Homeowners in England and Wales (including landlords) | Subscription service where you pay a monthly fee to receive solar energy, with option to purchase panels outright |
| Home Energy Scotland Grant and Loan Scheme | Ongoing | All homeowners in Scotland | Loan funding for solar thermal panels and hybrid solar PV/water heating |
| Parity Trust loan | Ongoing | Low income households, self-employed individuals or those with poor credit history. There is no upper age limit to apply | Loans in partnership with local authorities |
Barclays launched the Greener Home Reward scheme as part of its commitment to encouraging energy-efficient home improvements. The scheme involves a £1,000 cash payment for its UK residential mortgage customers to reward them for solar panel systems they have installed and paid for in full. To ensure that the solar installations are high quality, Barclays requires that they be carried out by businesses registered with TrustMark.
If you applied for this scheme on or before 31 January 2024, you’ll need to submit your claim form by 31 July 2024. Then you’ll have another month to provide proof of your home improvements. If the bank received your application on or after 1 February 2024, you’ll need to claim the reward within nine months of your application date and provide proof of the completed work.
How to apply for the Barclays Greener Home Reward
You can apply on Barclays’ website – the process is quick and easy. If you have any questions, you can also phone Barclays.
If you want to benefit from solar energy, without the upfront cost of installing panels, you could consider Effective Home’s Energy Shield. With this scheme, you won’t own the solar panels on your roof, nor will you be responsible for their upkeep.
Instead, you’ll simply pay a £99 onboarding fee, and then purchase the electricity generated by the system from Effective Home, at a pence per kilowatt (kW) unit rate that should be lower than the national average you’d pay for your energy. This tariff will be fixed, and is reviewed every five years.
How to apply for Effective Home Energy Shield
To apply for Effective Home’s Energy Shield, you will need to register your interest with the installer via its website. Effective Home will then be in contact as soon as possible to arrange a survey to assess your property’s suitability.
With Otovo’s subscription service, you don’t need to make an upfront payment to benefit from solar energy. Instead, you pay a monthly fee, spreading the cost of purchasing and installing your solar panels over up to 20 years. You still have the option to buy the solar panel system at any point during that period. You can also include a battery, which has a contract length of 10 years.
How much you pay each month will depend on the size of your solar system you have installed. Therefore, so too will the amount you are paying each month versus the amount you save on your energy bills. You can also still sell any excess energy you generate using SEG.
How to apply for an Otovo solar subscription
You can get a free quote for Otovo’s solar subscription service by putting in your postcode on the installer’s website.
Like Otovo, Sunsave Plus offers a subscription service where you pay off the cost of purchasing and installing your solar panels (including a battery as standard) on a monthly basis. Despite the fact the payment period can last as long as 20 years, Sunsave states that you own your panels from day one
There are no upfront fees or deposits, and you can fully pay-off your panels at any point without incurring early repayment penalties. And Sunsave Plus comes with a 20-year guarantee that includes 24/7 performance monitoring, insurance from Aviva and free battery and inverter replacement. You can also export your excess energy using a SEG tariff.
How to apply for Sunsave Plus
To apply for Sunsave Plus, you’ll need to be a homeowner in England or Wales.
Solar installer Unbound Energy offers its own solar panel and storage battery subscription service, SunFlex, which starts £60 a month with no upfront cost.
Unbound Energy takes care of installing the solar panels on your roof. You then benefit from the energy bill savings, minus your monthly subscription fee, without owning the panels. You’ll also benefit from any SEG payments you make. Remote monitoring, free repairs, insurance and downtime cover are all included in your monthly fee.
Subscription terms start from as little as three years – at the end of the subscription, you can either renew or have the panels removed. The subscription can also be transferred to your property’s new owner if you sell your home.
If you want to own the system, you can buy it from Unbound Energy at any time. The cost of this purchase will be shared with you when you sign up for your subscription. Alternatively, if you are subscribed for 30 years, Unbound Energy will ‘gift’ you the system, unless you want a new one installed.
There is a version of SunFlex for landlords and tenants, so both can benefit from solar energy savings.
How to apply for Unbound Energy SunFlex
You can contact Unbound Energy to find out more about SunFlex, and whether you are eligible.
While the Home Energy Scotland Grant and Loan Scheme no longer gives out grants for solar panels, you can still apply for a loan worth £5,000. This loan is designed for the installation of solar thermal panels, which generate heated water rather than electricity, or hybrid solar PV/water heating systems, which generate both hot water and electricity. This does mean, however, that you can’t get a loan for standard solar PV panels.
How to apply for the Home Energy Scotland and Loan Scheme
To apply for a Home Energy Scotland loan, you’ll either need to contact the scheme on 0808 808 2282 (8am to 8pm Monday to Friday, 9am to 5pm on Saturdays), or complete the online self-assessment form.
The Parity Trust offers secured loans to fund energy-efficient home upgrades such as solar panels. Working in partnership with various local authorities, this programme is designed to help those who are self-employed, have a negative credit history, receive benefits or are retired achieve a comfortable home. With repayment plans for homeowners and landlords, it has granted over 1,000 loans so far, 500 of which have been for people aged 60 or over.
The application process is designed to be simple, starting with a financial review either online or in person. The assessment takes one to two weeks, and if approved, you can book your solar installation.
Although there aren’t many grants for solar panels in Scotland, Scottish residents can take advantage of programmes such as the Home Energy Grant and Loan Scheme and ECO4. If you’re looking for a Welsh government grant for solar panels, the Warm Homes 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 on the initial cost of solar system installation thanks to the zero VAT scheme and the Barclays Greener Home Reward.
Our experts conducted extensive research into the various funding schemes and government grants for solar panels and found several websites that claimed to offer government-backed funding. However, on further investigation, they discovered that those websites are not linked to any official programmes. To protect yourself from these sorts of scams and ensure you apply for legitimate, beneficial government grants, be sure to follow these simple steps:
Several UK solar panels grants have recently expired. In most cases, the schemes had fixed durations or budgetary limits – once a certain date was reached or the available funding ran out, the grant was closed to new applicants. The following are some examples of recently expired schemes:
The UK government created the FiT scheme to encourage the uptake of a range of small-scale renewable and low-carbon electricity generation measures.
With this scheme, homeowners who installed sustainable electricity systems – such as solar panels, wind turbines and hydroelectric power – could receive payments from their energy supplier. Payments were based on the amount of electricity the homeowners generated and used themselves as well as any excess energy fed 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. The FIT scheme has been replaced by the SEG scheme.
*The Independent Advisor, survey of 1,544 Independent readers who own solar panels, June 2024.
[1] Labour.org.uk, Make Britain a clean energy superpower.
[2] Open Access Government, UK Government to quadruple solar power investment through GB Energy initiative, July 2024.
[3] The Guardian, Labour’s ‘rooftop revolution’ to deliver solar power to millions of UK homes, July 2024.
Several solar panel grants are available to households in the UK, for example the ECO4 and the SEG schemes, allowing more people to benefit from the advantages of solar panels. Local authorities in England and the governments of Scotland, Wales and Northern Ireland also offer a range of grants, loans and schemes to aid solar panel installation.
Solar panel grants may close for a variety of reasons, one of them being finite government resources. If a grant or scheme is deemed to be badly managed, have low uptake or poor results, it may be scrapped by the government. At the moment, solar panel costs are significantly cheaper than they were 10 years ago, so market forces alone are sufficient to encourage solar adoption, so the government may not treat solar subsidies as a priority.
Since the Labour government was elected on 5 July 2024, there are likely to be changes when it comes to government funding available for solar panels. While the new Energy Secretary Ed Miliband’s “solar rooftop revolution” promise does not mention of specific grants and schemes, it’s very likely that Labour will endeavour to make it easier for households to benefit from solar energy.[3]
Grants for solar panels are generally available to homeowners, landlords and sometimes tenants. Eligibility for these grants depends on factors such as income, property type and location.
Pensioners may be eligible for grants or subsidies for solar panel installations. Eligibility criteria depends on factors such as income, property location and energy rating. Pensioners should enquire with local authorities and energy providers about specific programmes and grants that may be available to help with solar panel installations.
While there are no specific schemes that provide free solar panels for recipients of personal independence payment initiatives such as ECO4 offer free or partially-funded solar panel installations to low-income households, including those who receive various means-tested benefits.
Eligibility criteria for different solar panel grants vary significantly, but they often require the recipient to reside in a specific area, not exceed a certain income threshold or inhabit a property with a low energy-efficiency rating. Before applying, check grant administrators’ websites to ensure you understand and meet all criteria to avoid wasted effort.
