The 10 best solar panel grants & funding options

Going solar is an extremely effective way to cut your electricity bills, but not everyone can afford the steep upfront cost – especially low-income households which are struggling the most.

Thankfully, there are plenty of grants, incentives, and alternative funding options that certain homes can access.

In this guide, we'll run through all the various initiatives, identify which households are eligible, and consider whether a solar subscription like Sunsave Plus could be the answer for you.

If you're curious about how much money a solar & battery system could save you on your energy bills, just provide a few quick details and we'll give you an estimate.

What are the grants and schemes for solar panels?

There are grants and schemes that can wholly cover the cost of solar panels, but it depends on your circumstances.

Low-income and energy-inefficient households can access one of these initiatives, as long as they're electrically heated, not connected to the gas grid, in social housing, or located in Wales.

Other schemes provide incentives including loans, discounts, and cashback payments. Their eligibility requirements and end dates vary.

And in good news for everyone, all homes can access the current 0% VAT rate on domestically installed solar panels and batteries.

These initiatives are all built to get more households running on solar electricity, which cuts their bills and the nation's carbon emissions.

If you think you're not likely to qualify for any of these grants but are concerned about the upfront cost of solar panels, you should consider a solar subscription.

Here's a summary of the key grants and schemes:

How do I qualify for free solar panels in the UK?

You may qualify for free solar panels if you're eligible for one of the UK’s four main grants.

However, two of these grants are only available in England, one can only be accessed in Wales, and all of them come with stringent qualifying criteria that target the most deprived households.

That all means that just 12.4% of the 27 million UK households that don’t yet have solar panels are eligible for a grant, according to our analysis of government data.

Thankfully, a lack of government funding hasn’t stopped the popularity of solar panels from skyrocketing all over the country.

Since August 2022, more than 312,000 households have gone solar, which is more than one-fifth of the UK’s total number of domestic solar installations – but only around 13% were funded by a grant.

If you want to know more about the methodology we used to make all of these calculations, we’ve explained it in depth near the bottom of the page.

Grant-funded domestic solar PV installations since 2022

What if I don’t qualify for any solar grants or schemes?

If you don't qualify for any solar panel grants, there's another way to start benefiting from solar electricity with no upfront cost.

Sunsave Plus, the UK’s first solar subscription, will provide you with best-in-class kit, all in one easy solar & battery package that comes with a 20-year Sunsave Guarantee.

Your installation will be tailored to your home, work seamlessly, look excellent, and save you money from day one.

Are there any upcoming solar panel grants?

The Labour government is in the process of launching the Warm Homes Plan, which is set to help households all over the country.

This £6.6 billion scheme will provide low-income households with grants and loans that subsidise the cost of eco-friendly measures like solar panels and batteries, insulation, and low-carbon heating systems.

However, the government's stated goal of helping five million homes with this scheme still leaves millions of people without solar panels – or any way of affording them.

The government has also begun setting up Great British Energy, a state-run green energy supplier that should eventually lower household bills, but won't make it easier for you to go solar.

Energy secretary Ed Miliband has said he wants to "unleash a UK solar rooftop revolution", but at present, this mainly means clearing planning obstacles and getting property developers to put solar panels on new-build homes.

1. What is ECO4?

Who is eligible for ECO4?

You can qualify for ECO4 if you’re a homeowner, private renter (with your landlord's permission), or social housing tenant.

You must also receive at least one of the following means-tested benefits:

• Pension Credit
• Universal Credit
• Income-based Jobseekers Allowance
• Income-related Employment & Support Allowance
• Income Support
• Housing Benefit
• Child or Working Tax Credit
• Child Benefit (with an annual income below specified thresholds, depending on who lives with you)

If you live in social housing and your property has an EPC rating of D, E, F, or G, you can also qualify for ECO4 measures.

And if you're not claiming the above benefits but earn under £31,000 per year, have health conditions worsened by a cold home, or are vulnerable to the effects of living in a cold home, you may also be able to qualify through your council's ECO4 Flex programme.

In the end though, suppliers will decide which measures – if any – to offer your household, so make sure you get multiple companies to assess your needs and propose improvements.

To get solar panels, you must use an electric heating system.

LA Flex: explained

The Local Authority and Supplier Flex (LA Flex) scheme is an extension of ECO4 that enables councils to help deprived homes which don't match ECO4's eligibility criteria.

Requirements differ from council to council, but if you've been in fuel debt for more than 13 weeks, started repaying your fuel debt through third party deductions, or disconnected yourself from a pre-payment meter, you may well be able to get help.

Households with a supplier that's either provided them with credit in the past 13 weeks or entered into an energy debt repayment plan with them may also be eligible.

To see if you could qualify for LA Flex, just contact your local authority. The government has directed half of ECO4's funding to LA Flex, so it's definitely worth checking.

How much money can ECO4 save you?

The amount of money you can save with ECO4 varies depending on the changes a supplier chooses to make.

However, the grants given under the ECO4 scheme can be substantial, potentially covering the entire cost of a new solar panel system and other eco-friendly improvements, which can make a big difference to your energy bills.

How to apply for ECO4

To apply for the ECO4 scheme, you’ll first need to find out whether you’re eligible, which you can do by completing this Ofgem questionnaire.

If you are eligible, get in touch with one (or a few) of the energy suppliers in the ECO4 scheme. You don't have to go with your current energy supplier; you can choose any of the companies involved.

How many people get solar through ECO4?

29,675 households have so far received solar panels through ECO4.

This is a substantial number, but it's still just 0.1% of homes in the UK.

It's also a mere 5.5% of the improvements made to homes under the scheme, showing that energy suppliers are somewhat reluctant to pay for solar panel installations.

In contrast, heating controls – which are much easier and cheaper to install – make up 52% of ECO4 measures.

Most common ECO4 home improvements, Jul 22 - Sep 24

2. What is the Home Upgrade Grant?

Who is eligible for the HUG?

To be eligible for the HUG, you must:

• own and live in the property you want to improve
• not use a gas boiler as your household's main heating system
• have an EPC of D, E, F, or G
• have an annual household income of £36,000 or less – though this limit is higher in some areas

How much money can the HUG save you?

Homes helped by the HUG can save significantly on their energy bills, though the exact benefit you receive will depend on your specific circumstances.

Solar panels, insulation, and heat pumps can all save you hundreds of pounds per year though, so it's certainly worth applying if you think you might be eligible.

How to apply for the HUG

First, you should check that your local authority has HUG funding to hand out. It's only available in certain areas in England, so contact your council to make sure.

During this conversation, you should also ask about your local authority's eligibility criteria, as the maximum household income can differ from place to place.

If you’re eligible, your local authority will arrange a home survey to assess potential energy efficiency improvements.

How many people get solar through the HUG?

1,618 households have so far gone solar through the HUG, which is not an enormous number.

36% of all home improvements made with HUG funding are solar panels, as of August 2024, making it the most popular measure in the scheme.

But this popularity doesn't mean too much when you consider that phase two of the HUG, which was launched in April 2023, has installed just 4,543 measures in 2,588 homes overall.

Most common HUG home improvements, Apr 23 - Aug 24

3. What is the Smart Export Guarantee?

Who is eligible for the SEG?

To be eligible for SEG payments, you need to generate electricity with one of the following systems:

• Solar panels
• Wind turbines
• Hydroelectric systems
• Micro combined heat and power (micro-CHP)
• Biochemical processes like anaerobic digestion

Your installation can have a maximum capacity of up to five megawatts (or 50 kilowatts for micro-CHP), and you’ll need a smart meter to record how much electricity you export.

Make sure you use a reputable installer like the ones included in our list of the best solar panel installers, as your system must be certified to be eligible for SEG payments.

How much money can the SEG earn you?

Your average SEG earnings will vary depending on the export tariff you choose, how much solar electricity your system produces each year, and your electricity consumption patterns.

Depending on the tariff you choose, you may be paid monthly, quarterly, or annually.

You'll likely receive your earnings via a bank transfer, unless your export tariff supplier is the same as your import supplier – in which case the money will usually be taken off your energy bill each month.

You can combine SEG with other grants and financial support, except if you’re already receiving FIT export payments. You'll need to opt out of your FIT export payments before you can start receiving SEG earnings.

How to apply for the SEG

Just contact any of the energy suppliers currently offering an export tariff, and follow their guidance to sign up.

The whole process can take up to 11 weeks, but after that, you can sit back and watch your earnings roll in.

Check out our regularly updated page on the best SEG rates to find the ideal tariff for you.

How many people have signed up for an SEG tariff?

131,506 solar panel systems have signed up for an SEG tariff since the scheme launched in January 2020, according to Ofgem data.

In the same time frame, 438,569 solar panel systems have been installed in the UK, which means just 30% of new solar homes have taken advantage of the SEG.

This is partly down to a lack of public knowledge about the SEG, and partly because many lucrative export tariffs aren’t technically part of the SEG.

For example, all Good Energy export tariffs currently operate outside of the SEG.

4. What are solar panel loans?

Who is eligible for solar panel loans?

To be eligible for a solar panel loan, you generally need to meet certain criteria. For instance, you usually have to own your home, fall in a certain age range, and be a UK resident.

In the case of Sunsave Plus, your application can have up to two applicants, and must fulfil these criteria:

• The lead applicant must be an owner of the property
• At least one applicant must be between 18 and 60 years old
• Both applicants must be UK residents

You won’t be eligible for Sunsave Plus if you’ve been declared bankrupt or received a county court judgement.

How much money can solar panel loans save you?

Solar panel loans can't save you any money by themselves, but they allow you to avoid paying the full cost of your solar panel system upfront – and they can enable you to save in other ways.

After all, you can take the money you would've spent on solar panels and invest it elsewhere, which could result in you generating considerable amounts of revenue over 20 years.

Thanks to the Sunsave Guarantee, Sunsave Plus can also save you money in ways most solar panel loans can't – for instance by supplying a free replacement battery and inverter, insurance, and monitoring and maintenance.

How to apply for a solar panel loan

Most solar panel loan providers simply require you to fill in an online application.

If you fulfil the company's initial requirements, you'll just need to choose the amount of time you want your loan to last for – usually three to 10 years – and complete a credit application.

You can apply for Sunsave Plus in much the same way, except it lasts for 20 years.

It's the UK’s first solar subscription rather than a solar panel loan, so it also comes with extra features, like a monitoring and maintenance package.

How many people get solar panel loans?

15% of Which? members got a solar panel loan to afford their panels, according to a recent survey by the company.

If this holds true across the UK, it means more than 200,000 households have taken out solar panel loans.

It makes sense to look at all your options when you're trying to avoid the steep upfront cost of going solar – and fortunately, with Sunsave Plus, there's a better way.

5. What are green home rewards?

Who is eligible for green home rewards?

Anyone who mortgages or remortgages their property with Barclays, Halifax, or Lloyds – and anyone who gets a mortgage with Nationwide – is eligible for a green home reward.

If you buy a home with a Nationwide mortgage that has an EPC rating of A or B, you will automatically receive your reward.

Nationwide will check your new home's EPC rating two weeks after it confirms your mortgage is in place, so there's no time to make improvements. To qualify, you just have to find a property that's already energy-efficient.

How much money can green home rewards earn you?

Green home rewards can earn you between £250 and £2,000, depending on the measures you take and the financial institution you choose to be your mortgage provider.

Halifax and Lloyds pay cashback amounts between £500 and £1,000 for installing a variety of measures from solar panels and heat pumps to double glazing and loft insulation.

Barclays' Greener Home Reward initiative comes with similar cashback amounts, except it goes as high as £2,000 for certain improvements – though unfortunately this doesn't include solar panels, which will net you £1,000.

Nationwide's scheme gives new mortgage holders £500 if the property has an A-rated EPC, or £250 if it has a B-rated EPC.

How to access green home rewards

You can only access Halifax and Lloyds' green home rewards if you apply directly for one of their mortgages – in a branch, over the phone, or online – instead of going through a broker.

Every year, Halifax and Lloyds create an 11-month qualifying time period, so make sure to send in your mortgage application during this time, then register for a green home reward within the next month.

If you have a Barclays mortgage, there are no time limits on when you can apply for the bank's Greener Home Reward programme.

You shouldn't even need to apply for a Nationwide Green Reward cashback, but it's worth bringing up the initiative to a representative during the mortgage application process, just in case.

The surge of green home rewards in the UK

Green home rewards have exploded in popularity in recent years, alongside green mortgages.

From four green mortgage products in 2019, this market has grown to more than 60 products, according to the Green Finance Institute.

And 57% of major mortgage lenders now offer a green mortgage of some kind, according to the Mortgage Advice Bureau

However, as long as these products continue to offer limited financial benefits, lenders will face accusations that they're meeting their own environmental targets without having any significant impact on homeowners or the climate.

6. What is the solar VAT discount?

Who is eligible for the solar VAT discount?

Everyone is eligible for the solar VAT discount – all you need to do is buy a qualifying product.

It applies automatically if you buy any of the following:

• Solar panel system
• Solar battery
• Air, ground, or water source heat pump
• Micro-CHP system
• Heating controls
• Insulation
• Smart diverters
• Wind turbine
• Water turbine
• Wood boiler

How much money can the solar VAT discount save you?

This discount can lead to big savings. Energy-efficient materials used to be taxed at 20%, but if you were on benefits or the materials cost less than 60% of the installation, the rate was reduced to 5%.

With the introduction of the 0% VAT rate, the average three-bedroom household can save around £450 when buying a new 3kWp solar & battery system, or £1,800 for those who would've previously paid 20% VAT.

The discount of course varies depending on the price of your system.

How to access the solar VAT discount

There is no specific application process for the solar VAT discount, as it’s automatically applied at the time of purchase​.

How many people have benefited from the VAT discount?

338,368 households in England, Scotland, and Wales have benefited from the VAT discount since it came into force in April 2022, according to government data.

Even if we conservatively assume that all of these installations would've previously come with a 5% VAT rate, this still represents an overall saving of £152 million.

7. What is the Warm Homes: Social Housing Fund?

Who is eligible for the WH:SHF?

All local authorities, social housing providers, and charities that own social housing are eligible to apply for wave three of WH:SHF, as long as they haven't benefited from wave two.

They can choose to apply by themselves, though they can apply as part of a consortium, and should especially consider doing so if they own fewer than 1,000 social homes.

Individual households cannot receive funding through WH:SHF, but if you live in a social home, you can certainly encourage your landlord to apply.

How much money can the WH:SHF save you?

Successful applicants will be handed up to £7,500 for every social home they run.

This means you could theoretically benefit from £7,500 worth of solar panels being installed on your roof, whether you live in a house or a flat.

The year-round supply of solar electricity that these panels produce will massively reduce your energy bills, which should drive down your costs by hundreds of pounds per year.

How to apply for the WH:SHF

Eligible bodies can apply to the Department for Energy Security & Net Zero between 30 September and 25 November 2024.

A landlord or local authority must include at least 100 social homes with an EPC rating below C on their application, unless they manage fewer than 1,000 properties.

In this case, they should attempt to reach 100 homes by bringing other landlords into a consortium – but if this isn't possible, they can still submit a successful application.

Applicants must also show they intend to hire installers that have been approved by Trustmark, the only government-endorsed quality scheme in the UK for works in and around your home.

How many people get solar through the WH:SHF?

3,138 solar panel systems were installed during wave one of the WH:SHF.

A further 2,503 arrays have been put on social homes during wave two – which is ongoing – for a total of 5,641 solar installations so far, as of September 2024.

Solar panels made up 10% of measures implemented during wave one, with this figure rising to 21% so far in wave two.

Most common WH:SHF home improvements, Apr 23 - Jun 24

8. What is the Welsh Government Warm Homes Programme?

Who is eligible for the WHP?

You may be eligible for the Warm Homes Programme, as long as you:

• Own or privately rent your home
• Have an EPC rating of 54 (E) or lower; or 68 (D) or lower if a member of your household has a chronic circulatory, respiratory, or mental health condition
• Live in a low-income household or receive a qualifying means-tested benefit (see the list below)

The following benefits are eligible:

• Child Tax Credit
• Council Tax Reduction
• Housing Benefit
• Income-based Jobseeker’s Allowance
• Income-related Employment and Support Allowance
• Income Support
• Pension Credit
• Universal Credit
• Working Tax Credit

How much money can the WHP save you?

The Warm Homes Programme can save you thousands of pounds by fully funding the installation of measures from solar panels and heat pumps to insulation.

And once these improvements are in place, they can cut your energy bills by hundreds or even thousands of pounds per year.

How to apply for the WHP

To apply for this scheme, just call 0808 808 2244.

A staff member will ask you some questions to work out if you qualify, guide you through uploading evidence to prove your eligibility, and talk you through the measures you can access.

You can even apply on behalf of someone else, as long as they give their verbal consent while you're on the phone.

The whole process typically takes 30-40 minutes.

You'll then be able to arrange for British Gas to install any measures you've agreed upon.

How many people get solar through the WHP?

From April 2022 to March 2023, the former iteration of the WHP funded solar installations for around 800 households.

In total, the scheme enabled energy-saving improvements to 4,364 homes, meaning 18.3% of the scheme's recipients went solar.

Eco-friendly central heating systems made up the vast majority of measures.

Most common WHP home improvements, 2022-23

9. What are social housing PPA schemes?

Who is eligible for social housing PPA schemes?

As the PPA scheme is a business-to-business arrangement, it's only available to social housing providers or landlords directly.

How much money can social housing PPA schemes save you?

As a tenant, you’ll enjoy cheaper electricity, potentially adding up to hundreds of pounds in savings over the lifespan of the contract and/or panels.

The company involved can change the price of your electricity at any time​, but it should always be cheaper than the rate you'd pay otherwise.

How to apply for social housing PPA schemes

There's no direct application process for tenants. Instead, social housing landlords need to enter into a PPA with a specialist provider.

10. What is Solar Together?

Who is eligible for Solar Together?

The scheme is open to homeowners, small or medium-sized businesses, and tenants (with their landlord’s permission).

However, it’s not available in every area. Check with Solar Together if your region is currently accepting sign-ups.

How much money can Solar Together save you?

The scheme benefits from group purchasing power and competitive bidding, so you can expect to knock off around 30-35% of a solar PV system’s typical market price.

Registration for Solar Together is free, and there's no obligation to proceed with an installation. The costs involved are only for the purchase and installation of the solar panel system.

How to apply for Solar Together

The first step is to check on the Solar Together website if a scheme is running in your area. You can either register online or add your details to a waiting list to be notified when it becomes available in your region.

During the application process, you’ll need to provide details about your house, roof space, and typical electricity usage.

These will be used to send you a personal recommendation for the solar installation after the auction.

Our methodology

We went through all the eligibility criteria attached to the four main solar grants, rooting out the most recent government data to work out how many households meet each requirement.

Then we combined those numbers to come up with an accurate overall figure.

Defunct grants & schemes

The UK government has steadily reduced solar funding over the past few years, as is the case in other parts of Europe – more on that below.

After well over a decade of the government providing financial incentives for homes to go solar, the flood of grant money has slowed to a trickle.

The Feed-in Tariff is perhaps the most famous to fall by the wayside – though it technically continues to exist for some households that signed up before the final deadline.

Here are all the most important solar grants and schemes that have run their course.

Next steps

There are several grants and initiatives to help make the cost of solar panels more affordable – and profitable – for households all over the UK.

However, all of the best options – like the Home Upgrade Grant, Welsh Government Warm Homes Programme, and ECO4 – are targeted at the most disadvantaged households on these shores, and have stringent criteria as a result.

Most other grants don't properly address the biggest barrier: the upfront cost. The Smart Export Guarantee, Green home rewards, and even the VAT discount are worthy initiatives, but they're incentives rather than a proper solution.

If you want to avoid the high upfront cost of solar panels, you should find out if Sunsave Plus will work for you. To sign up for the UK's first solar subscription, enter a few details below and we'll be in touch.

Solar panel grants: FAQs