Solar panel grants

What grants actually fund solar panels in 2026?

Honest answer up front: there is no UK government grant that pays for residential solar PV directly. There are some adjacent schemes that help — and a lot of websites pretending there are grants there aren't. Here's what's real.

The honest verdict

There is no big UK solar grant.

Solar PV doesn't get the same direct grant treatment that heat pumps and insulation do. The two flagship schemes — ECO4 and the Boiler Upgrade Scheme — fund heating and insulation, not solar PV. If a website tells you "claim £5,000 in solar grants today", they're either selling you finance dressed up as a grant, or they're wrong.

The good news: you don't need a big grant to make solar pay back in the UK. Three real things bring the cost down or the return up.

What's real

Three things that genuinely help.

1. 0% VAT on residential solar installation

The UK currently zero-rates VAT on residential solar PV installation, including battery storage installed at the same time. That's a 20% saving versus the pre-2022 rate. Your installer applies it automatically. It runs to 2027 under current policy. It's not a "grant" but it's the biggest single price reduction available to most homeowners.

2. The Smart Export Guarantee (SEG)

The SEG pays you per kWh of solar electricity you export back to the grid. Tariffs vary by supplier — typically 5–15p per kWh in 2026, with a few specialist tariffs going higher. It's the export half of your annual benefit. You'll need an MCS-certified installation to qualify. The savings calculator uses the SEG range to estimate your annual benefit.

3. Local council schemes (occasionally)

Some councils — more common in Scotland and a handful of English local authorities — run small loan or grant schemes for domestic renewables. They come and go and they're usually capped. Search "[your council name] solar grant" or check your council's website directly. Don't take a salesperson's word for it.

What isn't

Schemes that get misrepresented.

ECO4

Funded by energy suppliers under their obligation. Targets fuel-poor and low-income households. Solar PV is sometimes bundled in alongside insulation or heating, but it is not a "claim free solar panels" scheme. Eligibility is narrow.

Boiler Upgrade Scheme (BUS)

£7,500 grant for replacing fossil heating with a heat pump. It does not pay for solar PV. If you're considering both, the heat pump grant is real; the "solar grant" you've seen advertised next to it usually isn't.

Free solar panel offers

Almost always finance dressed up as a grant. You're either taking out a loan (you'll pay it back over 10–25 years), renting your roof to a company that keeps most of the generated electricity, or being scammed. Read the contract before signing anything.

Useful next step

Find out what your roof would actually save.

If you can't claim a grant, the next-best lever is knowing your real annual benefit and payback. Both depend on your roof's direction, your usage, and battery options — not on generic "save £X" claims.

Common questions

FAQs.

Is there a UK government grant that pays for solar panels?

No — not directly. The two big domestic decarbonisation schemes (ECO4 and the Boiler Upgrade Scheme) cover heating and insulation, not solar PV. Some local councils run small schemes; some installers offer financing labelled as "no upfront cost", which is a loan, not a grant.

What about ECO4? Doesn't it fund solar?

ECO4 is the energy company obligation funded by suppliers. It pays for insulation, heating upgrades (mostly heat pumps and boilers), and similar measures for low-income or vulnerable households. Solar PV is sometimes bundled in alongside other measures, but ECO4 is not a "free solar panels for everyone" scheme. Sites that imply it is are misleading you.

What about 0% VAT?

In the UK, solar panel installation on residential properties is currently zero-rated for VAT (this saves homeowners 20% versus the pre-2022 rate). It's effectively a tax break rather than a grant — your installer applies it automatically and the saving shows up in the quote. The relief runs through to 2027 (current government policy at the time of writing).

What about the Smart Export Guarantee?

The SEG is the scheme that lets you sell unused solar electricity back to your supplier. It pays per kWh exported, typically 5–15p depending on the supplier. It's a payment for the energy you generate, not a grant for the installation. Use it to estimate the export part of your annual benefit in the savings calculator.

Are there any local council schemes?

Some councils — particularly in Scotland and a handful of English local authorities — run loan or grant schemes for renewable energy. They come and go. Search "[your council name] solar grant" or check your council website. Don't take "yes there's a council scheme" from a seller as fact — verify it on the council's own site.

I've been told I can get free solar panels. Is that real?

Almost always: no. Schemes that sell themselves as "free solar" usually mean (a) you finance the panels via a loan (you pay it back over years), (b) you rent your roof to the company in exchange for the install (they keep most of the savings for 20+ years), or (c) it's an outright scam. Read the contract carefully. If it's genuinely free, ask why.