Switching to solar energy is an excellent way to save money on energy bills and reduce your carbon footprint. Fortunately, several government grants and funding schemes are available to help homeowners and businesses make the switch. Here, we’ll break down the latest options, eligibility requirements, and how to apply for them with a lot more to come in 2025.

Latest News

In a recent initiative to advance the UK’s clean energy goals, the government is formulating plans to provide grants and affordable loans to homeowners for the installation of solar panels and batteries. This effort aligns with Prime Minister Sir Keir Starmer’s commitment to achieving 95% clean energy by 2030. The proposed subsidies aim to make renewable energy solutions more accessible, enabling millions of households to contribute to the nation’s net-zero targets. A spokesperson for the Department for Energy Security and Net Zero stated that an initial £3.4 billion has been committed over the next three years, with up to 300,000 households expected to benefit from home upgrades in the coming year.

Solar Panel Grants and Solar Panel Funding Schemes at a Glance

There are several key grants and schemes to consider:

ECO4 Scheme: Focused on energy efficiency improvements.
ECO4 Flex Scheme: Provides additional flexibility for eligibility.
Home Upgrade Grant: Targets off-gas grid homes.
Smart Export Guarantee (SEG): Offers payments for surplus energy.
Solar Together: A bulk-buying initiative for solar panels.
0% VAT: Reduces upfront costs for solar installation.

Am I Eligible for Free Solar Panel Grants?

Eligibility varies by scheme and is typically based on factors such as income, energy efficiency ratings, and whether your home is connected to the gas grid. Many grants prioritize low-income households and those living in older, less energy-efficient homes.

The ECO4 Scheme

The ECO4 scheme aims to improve energy efficiency in low-income households by providing funding for solar panels and other improvements.

ECO4 Eligibility Requirements for Solar Panels

To qualify, you must:

Live in a property with an EPC rating of D, E, F, or G.
Be receiving specific government benefits, such as Universal Credit or Housing Benefit.

Potential Savings with ECO4

Households could save hundreds of pounds annually on energy bills by generating renewable energy with solar panels.

How to Apply for ECO4

Applications can be made through approved energy suppliers or installation companies. Contact us to guide you through the process and ensure eligibility.

The ECO4 Flex Scheme

This variation of the ECO4 scheme provides additional eligibility criteria to support more households.

ECO4 Flex Eligibility Requirements for Solar Panels

Eligibility depends on local authority discretion, which considers household income and energy needs.

The Home Upgrade Grant

The Home Upgrade Grant focuses on improving energy efficiency in off-gas grid properties.

Home Upgrade Grant Eligibility Requirements for Solar Panels

Available for homes not connected to the gas grid.
Targets households with low incomes or energy-inefficient properties.

Potential Savings with the Home Upgrade Grant

Eligible households can reduce annual energy bills by up to £500.

How to Apply for the Home Upgrade Grant

Applications are processed through local authorities. Reach out to your council for details or contact us for assistance.

The Smart Export Guarantee (SEG)

The SEG rewards homeowners for exporting surplus energy generated by their solar panels back to the grid.

SEG Eligibility Requirements for Solar Panels

You need:

MCS-certified solar panels.
A smart meter to track energy exports.

Potential Savings with the SEG

Earnings depend on the energy you export and the tariff offered by your energy supplier.

How to Apply for the SEG

Contact your energy supplier to learn about their SEG tariffs and sign up.

Solar Together

Solar Together is a group-buying scheme for solar panels that helps reduce installation costs through bulk purchases.

Solar Together Eligibility Requirements for Solar Panels

Eligibility varies but is generally open to homeowners and small businesses.

Potential Savings with Solar Together

Participants can save up to 20% on installation costs.

How to Apply for Solar Together

0% VAT for Solar Panels

The government has reduced VAT on energy-saving materials, including solar panels, to 0%.

Which Energy-Saving Materials Does the 0% VAT Apply To?

Solar panels
Battery storage
Insulation materials

Potential Savings with 0% VAT

This incentive can save homeowners hundreds of pounds on installation costs.

Solar Panel Finance and Loans

If you don’t qualify for grants, financing options like green loans can help you spread the cost of solar panels over time. Many lenders offer competitive interest rates for renewable energy projects.

How to Get Solar Panels for Less Without a Grant or Loan

Bulk purchasing, such as through Solar Together, or seeking discounts from local installers can significantly reduce costs. Additionally, the 0% VAT incentive applies regardless of grant eligibility.

Grants and Funding Available for Wales, Ireland, and Scotland

Scotland – Home Energy Scotland Grant and Loan

Residents can access funding and interest-free loans for solar panel installation.

Wales – Nest

The Nest scheme offers support for energy efficiency improvements, including solar panels, to eligible low-income households.

Northern Ireland – None at Present

Currently, no specific grants are available for solar panels in Northern Ireland.

International Solar Panel Grants

Several countries, including Germany and Australia, offer generous subsidies for solar panels. If you own property abroad, check local schemes.

How to Avoid Solar Panel Grant Scams

Verify the credentials of any company offering grant services.
Check government websites for official schemes.
Avoid companies requiring upfront fees for grant applications.

What Do I Do If I Don’t Qualify for Any Solar Panel Grants?

If you don’t qualify, consider financing options, Solar Together, or the 0% VAT incentive. You can also reduce costs by choosing a smaller solar system and expanding later.

Are There Any Grants for Replacing Existing Solar Panels?

Currently, most grants focus on new installations rather than replacements. However, you may be eligible for repair or upgrade schemes through local authorities.

Is the Government Going to Offer More Solar Panel Grants?

The government’s focus on renewable energy suggests that new initiatives may be introduced. Stay informed by following updates on official channels.

Key Learnings

Government grants and schemes like ECO4, SEG, and Solar Together make solar panels more accessible.
Eligibility depends on income, property type, and energy efficiency ratings.
Additional savings are available through 0% VAT and group-buying programs.

Next Steps

If you’re interested in installing solar panels, contact us today. We’ll help you determine eligibility for grants and funding, guide you through the application process, and provide competitive quotes for your installation