UK Solar Panel Grants 2026: What Funding You Can Still Get (and What's Changed)

The landscape of solar panel grants and funding in the UK has evolved significantly. While some schemes have ended, several valuable support options remain available in 2026. This guide explains what funding you can still access, who's eligible, and how to apply.

The Current Grant Landscape: What's Changed

What's Ended

Two major schemes are no longer accepting new applications:

• Feed-in Tariff (FIT): Closed to new applicants in 2019
• Green Homes Grant: Ended in 2021

These schemes were replaced by new initiatives better suited to 2026's energy landscape.

What's Still Available

Despite these closures, several substantial support mechanisms remain:

• ECO4 scheme (until March 2026, possibly extending as ECO5)
• 0% VAT on solar panel installations (until March 2027)
• Smart Export Guarantee (SEG) payments
• Regional and local council grants
• Interest-free loans in Scotland
• Group-buy discount schemes

ECO4: The Main Solar Grant Scheme

What is ECO4?

The Energy Company Obligation (ECO4) is currently the primary national scheme offering free or heavily subsidised solar panels for eligible UK households. It runs until March 2026, with potential extension as ECO5.

ECO4 is funded by large energy suppliers and aims to improve energy efficiency in homes, particularly for vulnerable and low-income households.

Who's Eligible for ECO4?

You may qualify if you meet one or more of these criteria:

• Income level: Annual household income typically under £31,000
• Benefits: Receipt of qualifying benefits including:
  • Universal Credit
  • Pension Credit
  • Income Support
  • Job Seeker's Allowance (income-based)
  • Employment and Support Allowance (income-related)
  • Child Tax Credit
  • Working Tax Credit
• Property EPC rating: D, E, F, or G
• Housing status: Owner-occupiers, private tenants (with landlord consent), or social renters

ECO4 Flex

Some local councils operate "ECO4 Flex," which allows them to refer additional households based on local criteria even if they don't meet standard eligibility requirements. This may include:

• Households living in cold homes
• Those with specific health conditions affected by cold
• Properties in areas of high fuel poverty

Contact your local council to check if they operate ECO4 Flex and what their specific criteria are.

What ECO4 Covers

For eligible households, ECO4 can cover:

• Up to 100% of solar panel installation costs
• Associated insulation improvements (often required alongside solar)
• Other energy efficiency measures

The most vulnerable households typically receive the highest level of support.

0% VAT: Universal Benefit Until March 2027

How It Works

All residential solar panel installations in the UK benefit from 0% VAT until March 2027. This applies to:

• Solar panels
• Battery storage systems
• Installation labour

The Saving

With 0% VAT, you automatically save 20% on the total cost. For example:

• 4 kW system without VAT exemption: £8,400 (£7,000 + 20% VAT)
• 4 kW system with 0% VAT: £7,000
• Saving: £1,400

This isn't technically a "grant," but it's a substantial automatic discount that makes 2026 an ideal time to install solar panels.

Smart Export Guarantee (SEG)

What is SEG?

The Smart Export Guarantee replaced the Feed-in Tariff and pays you for surplus solar electricity you export to the grid. Unlike FIT, SEG is not a grant but an ongoing payment scheme.

How It Works

• Your solar panels must be MCS-certified
• You need a smart meter to track exports
• Your energy supplier pays you for exported electricity
• Rates vary by supplier (typically 2p-20p per kWh in 2026)

Expected Earnings

A typical 4 kW system might export 40-50% of generated electricity, earning:

• At 5p/kWh: £100-£150 per year
• At 10p/kWh: £200-£300 per year
• At 15p/kWh: £300-£450 per year

Shop around for the best SEG rates when choosing your energy supplier.

Regional and Local Council Schemes

Warm Homes Grants

Many local councils operate their own grant schemes for low-income or vulnerable households. These vary by region but may cover:

• Solar panel installation
• Insulation improvements
• Heating system upgrades

Contact your local council's energy or housing department to learn about available schemes in your area.

Solar Together

Solar Together is a group-buying scheme run by some local councils, offering discounted solar panel installations through collective purchasing power:

• Typically 30-35% discount on installation costs
• Available to all homeowners in participating areas
• No means-testing required
• Registered installers ensure quality

Check if your council participates and when the next registration period opens.

Home Energy Scotland

Scottish residents can access interest-free loans for solar panels and battery storage through Home Energy Scotland:

• Loans up to £7,500 for solar and batteries
• 0% interest
• Flexible repayment terms
• Combined with grants for low-income households

Great British Insulation Scheme (GBIS)

What is GBIS?

Primarily focused on insulation, GBIS may support solar panel installation if installed alongside insulation measures in qualifying homes.

Eligibility

• Properties with EPC ratings D-G
• Council Tax bands A-D in England, A-E in Scotland and Wales
• No means-testing required

If your home needs insulation and you're considering solar, GBIS could help fund both.

What About the Boiler Upgrade Scheme (BUS)?

Important Clarification

The Boiler Upgrade Scheme focuses on heat pumps, not solar panels. It provides:

• £7,500 grants for air source heat pumps
• £7,500 grants for ground source heat pumps
• £5,000 grants for biomass boilers

Combining BUS with Solar

While BUS doesn't directly fund solar panels, you can:

• Use BUS for a heat pump installation
• Apply for ECO4 or other schemes for solar panels separately
• Install solar and heat pump together for maximum efficiency

Many homeowners combine heat pump grants with solar installations, as solar electricity can power the heat pump, creating an ultra-efficient home heating system.

How to Apply for Solar Grants

For ECO4 and ECO4 Flex

1. Contact a participating ECO4 installer (search online for "ECO4 solar installers" in your area)
2. Alternatively, contact your energy supplier directly
3. Complete an eligibility assessment
4. If eligible, the installer arranges a home survey
5. Installation scheduled if approved

Important: Apply soon, as ECO4 is scheduled to end in March 2026 (though it may be extended as ECO5).

For Council Grants

1. Contact your local council's energy efficiency or housing department
2. Ask about available solar panel grants and schemes
3. Inquire about ECO4 Flex eligibility
4. Complete application forms as required

For Home Energy Scotland

1. Call Home Energy Scotland helpline: 0808 808 2282
2. Complete the online application
3. Receive loan approval decision
4. Choose from approved installers

For Solar Together

1. Check if your council participates: solartogether.co.uk
2. Register during open registration periods (typically once or twice annually)
3. Receive personalised quote
4. Accept or decline the offer
5. Installation arranged if accepted

Important Tips for Securing Funding

Act Quickly

With ECO4 ending in March 2026 and 0% VAT expiring in March 2027, time is of the essence. Grant funding is often distributed on a first-come, first-served basis.

Combine Support Mechanisms

You may be able to combine multiple support options:

• ECO4 grant + 0% VAT (automatic)
• Council grant + SEG payments (ongoing)
• Solar Together discount + SEG payments
• Home Energy Scotland loan + 0% VAT

Check Installer Credentials

For grants and 0% VAT to apply, ensure your installer is:

• MCS (Microgeneration Certification Scheme) certified
• Registered with relevant grant schemes
• Properly insured and accredited

Get Multiple Quotes

Even with grants, costs can vary between installers. Obtain at least 3 quotes to ensure competitive pricing.

What If You Don't Qualify for Grants?

If you don't meet ECO4 eligibility criteria, you can still access:

• 0% VAT: Automatic 20% discount (until March 2027)
• SEG payments: Ongoing income from exports
• Group-buy schemes: Discounts through Solar Together or similar
• Energy bill savings: £800-£1,200 per year
• Payback period: Typically 6-8 years

Even without grants, the financial case for solar remains strong in 2026.

Looking Ahead: What's Next?

ECO5 Extension

The government is expected to extend ECO beyond March 2026 as "ECO5," likely with similar eligibility criteria but potentially updated targets and measures.

Ongoing Policy Development

The UK government continues developing policies to support renewable energy adoption. Stay informed about new schemes by:

• Checking gov.uk regularly
• Following energy efficiency organisations
• Subscribing to Green Home Report updates

Summary: Your Action Plan

1. Check ECO4 eligibility immediately if you meet income or benefits criteria
2. Contact your local council about ECO4 Flex and local grants
3. Look into Solar Together if available in your area
4. Take advantage of 0% VAT before March 2027
5. Factor in SEG payments when calculating returns
6. Get quotes from multiple MCS-certified installers
7. Act soon as major schemes have expiry dates

While the grant landscape has changed, substantial support remains available for UK homeowners in 2026. Combined with rising energy prices and improving technology, there's never been a better time to invest in solar power.

Ready to explore your options? Use our free solar calculator to get a personalised assessment and learn which support mechanisms you might qualify for.