There is no single UK-wide grant for solar panels that anyone can claim. The Energy Saving Trust (EST) says there are no dedicated solar panel grants from the UK government, although you may get funding through other schemes. Support comes as tax relief, export payments, loans and targeted low-income schemes.
What most households can use is 0% VAT until 31 March 2027, Smart Export Guarantee payments and, from September 2026, government-subsidised loans through the Warm Homes Loan Scheme. Low-income households may get free solar through council or devolved schemes. This is general information, not financial or tax advice: check current scheme rules on GOV.UK and use MCS-certified installers.
How it works
Which support applies depends on where you live, your income and whether you own or rent.
0% VAT on solar panels
Energy-saving materials installed in homes, including solar panels, are zero-rated for VAT until 31 March 2027. The rate reverts to 5% from 1 April 2027. Since 1 February 2024 batteries also qualify, including those retrofitted to existing solar.
Smart Export Guarantee (SEG)
Since 1 January 2020, the Smart Export Guarantee has required energy suppliers with at least 150,000 domestic customers to offer a tariff that pays for exported electricity. It covers installations up to 5 MW in Great Britain, and for solar up to 50 kW an MCS certificate is normally needed. Rates must be above zero, but suppliers set them. According to the Solar Energy UK league table (May 2026), most untied tariffs pay between 1p and 6p per kWh, while tied tariffs, which require the supplier’s import tariff or equipment, pay 15p to 25p. EST says plug-in solar kits normally cannot get SEG payments because suppliers require MCS certification.
The Warm Homes Loan Scheme
The scheme rules (September 2026) describe an initial consumer launch phase from September 2026. It is a loan, not a grant, so you must repay it. The government pays a grant to lenders, which must be passed on as a lower interest rate on loans of three years or more. Owner-occupiers and private landlords anywhere in the UK can apply, with no income threshold, although lenders run normal affordability checks. Caps are £15,000 for solar PV and £15,000 for batteries. Installations must use MCS-certified products and installers. We found no official list of participating lenders by early October 2026, so check GOV.UK before assuming a loan is available to you.
Low-income grants
In England, Warm Homes: Local Grant, delivered by councils, covers privately owned homes rated EPC D–G where household income is usually £36,000 a year or less (higher earners may qualify through postcode or benefits). Measures include insulation, air source heat pumps, smart controls and solar panels; the council decides what to install after a home survey. In Wales, the Nest scheme offers free advice and means-tested home improvements, which can include solar panels.
Real-world examples
ECO4 and the Great British Insulation Scheme
The Energy Company Obligation (ECO4) will run until 31 December 2026, following a nine-month extension with no increased targets. The government has said there is no successor obligation. ECO4 helped households on benefits such as Universal Credit or Pension Credit. The Great British Insulation Scheme (GBIS) closed to new installations on 31 March 2026. Under the Warm Homes Plan, the government plans to merge low-income grants into a single scheme from 2027/28.
Warm Homes: Local Grant
This English scheme has run since April 2025 and is funded to 31 March 2028. Provisional statistics published in July 2026 show around 5,100 households upgraded by the end of June 2026. Solar PV was the most common measure at 38%, followed by insulation at about 24% and batteries at 17%. Funding is not uniform: some councils have used up their current allocation, and Stoke-on-Trent, for example, has said it cannot currently take further applications. Availability varies by council.
Nest in Wales
Nest has operated since 2011 and has helped over 60,000 households. Its home improvements are means-tested, but the official pages do not publish income thresholds, so contact Nest to check eligibility.
Scotland’s distinct rules
Home Energy Scotland offers grants and interest-free loans for heating and energy efficiency, open to homeowners whose home is their main residence. Standard solar PV panels are not on its funding list. For solar, it offers loans only, with no grant: up to £5,000 for solar thermal and up to £5,000 for hybrid PV-T systems that produce both electricity and hot water. Some websites still say Home Energy Scotland funds ordinary solar PV; its current page does not.
What the numbers say
Export earnings
In SEG Year 5 (April 2024 to March 2025), Ofgem reports that 270,395 installations were registered and payments totalled £56.97 million. The average tied tariff paid 14.54p per kWh and the average untied tariff 4.39p per kWh. What you earn depends on your home, usage and tariff.
Upfront costs and loans
The Warm Homes Plan press release (January 2026) says the low-income element can fully fund solar panels and a battery up to the full average cost, currently £9,000–£12,000. Under the current VAT rules, you pay no VAT on solar or batteries rather than the 5% due from April 2027. Through the Warm Homes Loan Scheme, you can borrow up to £15,000 for solar; interest rates will depend on the lender.
Business incentives
For capital allowances, GOV.UK places solar panels in the special rate pool, with a writing-down allowance of 6%. A new 40% first-year allowance from 1 January 2026 covers main-rate assets and does not appear to cover solar. Full expensing and the 50% first-year allowance are for companies only, on new plant and machinery bought from 1 April 2023; companies may be able to claim the 50% first-year allowance on special-rate assets such as solar panels, but check with HMRC or an accountant. This is not tax advice.
Limitations / honest assessment
Support is fragmented, and there is no single grant for everyone. Free installations are means-tested, so many homeowners will rely on 0% VAT, the SEG and, once lenders are confirmed, the Warm Homes Loan Scheme.
Export rates vary widely, and the highest are tied to a supplier’s import tariff or equipment, so compare terms as well as rates.
Be careful with unsolicited offers. Kent Police reported arrests in 2026 after elderly people were cold-called and persuaded to pay for solar “upgrades” that were not carried out; police say legitimate firms give you time to decide. Trading Standards in Norfolk and Moray have warned about cold callers offering “free government surveys” or “solar health checks” and falsely claiming that inverters are failing. Use MCS-certified installers, and follow the Renewable Energy Consumer Code (RECC): you should not pay more than a 25% deposit, and be wary of same-day discounts or visits lasting more than two hours.
“Free solar” in the Feed-in Tariff era usually meant rent-a-roof: a company owned the panels and collected the tariff. In 2012 the Council of Mortgage Lenders and RICS warned these leases could cause problems when selling or remortgaging. With the Feed-in Tariff closed to new applicants since 1 April 2019, that model largely ended. Genuinely free solar today comes through means-tested schemes such as Warm Homes: Local Grant, Nest and the low-income element of the Warm Homes Plan. For what a typical home system costs and generates, see our guide to solar panels for your home.
The UK angle
- England: Warm Homes: Local Grant for low-income households. The Boiler Upgrade Scheme (BUS) applies in England and Wales and does not fund solar: it offers £7,500 for an air-to-water or ground source heat pump, £2,500 for air-to-air (from 28 April 2026), £9,000 for off-gas oil or LPG homes (21 July 2026 to 31 March 2027) and £5,000 for a biomass boiler (rural, off-gas only).
- Scotland: Home Energy Scotland grants and loans for heating and insulation; loans only for solar thermal and PV-T, and no funding for standard solar PV.
- Wales: Nest for means-tested free upgrades. The BUS also applies.
- Northern Ireland: the SEG does not apply, so ask your supplier about export tariffs. The Affordable Warmth Scheme was extended until March 2026; we could not confirm whether it continues, so check with NI Energy Advice or the Housing Executive. The Warm Homes Loan Scheme covers NI. Plug-in solar is not yet legal in NI.
For the wider picture, see our solar energy guide.
Frequently asked questions
Are there government grants for solar panels in 2026?
There is no universal grant. The main national benefit is 0% VAT until 31 March 2027. Low-income households may get free solar through Warm Homes: Local Grant (England) or Nest (Wales), both part of wider means-tested support.
Who can get free solar panels, and how do I apply?
In England, Warm Homes: Local Grant covers privately owned homes rated EPC D–G with household income usually £36,000 or less; apply through your council, which decides the measures after a survey. In Wales, contact Nest. Funding varies by council.
What is the Warm Homes Plan, and when can I get a low-interest solar loan?
The Warm Homes Plan, published on 21 January 2026, promises £15 billion of public investment and upgrades for up to 5 million homes. The Warm Homes Loan Scheme’s initial consumer phase runs from September 2026, with loans of up to £15,000 for solar. No official lender list had been published by early October 2026, so check GOV.UK.
Is ECO4 still running, and what replaced the Great British Insulation Scheme?
ECO4 runs until 31 December 2026, with no successor obligation. GBIS closed on 31 March 2026 and has no direct replacement. The government plans to merge low-income grants into a single scheme from 2027/28.
What support is there in Scotland, Wales and Northern Ireland?
Scotland offers grants and loans for heating and insulation, and loans for solar thermal and PV-T, but nothing for standard solar PV. Wales offers means-tested upgrades through Nest. In Northern Ireland, the Affordable Warmth Scheme’s status after March 2026 is unconfirmed, and plug-in solar is not yet legal.
Are “free solar panel” cold calls legitimate, and how do I avoid scams?
Treat them with caution: police and Trading Standards have warned about cold callers using solar offers. Check that any installer is MCS-certified, pay no more than a 25% deposit under RECC guidance, and verify any claimed government grant or loan with your council or on GOV.UK.