Solar Panels Grant
Government Support for Solar Panels in the UK
Information on Solar Panel Grants, Eligibility, and Energy Efficiency Schemes
This page provides information about how households in the United Kingdom can access financial support for installing solar photovoltaic (PV) panels through government-backed schemes. It outlines available funding options, eligibility requirements, energy efficiency benefits, and how excess electricity can be sold back to the grid.
Solar Panels and Government Grants: What Is Available?
The UK Government and energy regulators support a number of schemes to help households improve energy efficiency through the installation of renewable technologies. Solar PV systems are one of the key measures supported.
The primary support routes currently available are:
- The Energy Company Obligation (ECO4)
- 0% VAT on energy-saving materials and installation
These schemes aim to reduce fuel poverty, lower household carbon emissions, and improve the UK’s overall energy resilience.
The Energy Company Obligation
The Energy Company Obligation is a government regulation that requires major energy suppliers to fund the installation of energy efficiency improvements for eligible households. ECO4 runs from April 2022 to March 2026 and covers a range of energy-saving measures, including the installation of solar PV systems.
Who Is Eligible?
ECO4 is aimed at low-income and fuel-poor households. You may qualify if you:
- Have a household income of less than £31,000 per year
- You suffer from a health condition exasperated by the cold
- Receive one or more income-based benefits, including:
- Universal Credit
- Housing Benefit
- Pension Credit
- Child Tax Credit
What Does ECO4 Cover?
While funding levels vary, ECO4 can cover the full cost of solar panel installation, along with heat pumps and various insulation measures. It can also cover other heating upgrades, such as a new boiler or first time central heating. The grant value depends on the expected energy savings, property type, and available supplier funding. Energy suppliers appoint certified installers, and recipients cannot choose their own contractors.
Understanding Energy Performance Certificates (EPCs)
What Is an EPC?
An Energy Performance Certificate (EPC) rates the energy efficiency of a property from A (most efficient) to G (least efficient). It provides recommendations for reducing energy consumption and is required when selling or letting a property in England, Wales, and Northern Ireland.
EPCs are valid for ten years and are issued by accredited assessors.
Why It Matters
Your EPC rating is used to determine eligibility for schemes such as ECO4. Properties with lower energy efficiency (typically D or below) are prioritised for improvements.
Check your EPC Rating
The Smart Export Guarantee (SEG)
What Is the SEG?
The The Smart Export Guarantee is a statutory obligation requiring licensed electricity suppliers to pay households for surplus electricity they export back to the grid. This applies to households generating electricity through small-scale renewable sources, including solar panels.
The SEG replaced the Feed-in Tariff (FiT) scheme in January 2020.
How Does It Work?
To receive SEG payments, you must:
- Install a solar PV system certified under the Microgeneration Certification Scheme (MCS)
- Have a smart meter or export meter installed to measure exported electricity
- Sign up with a SEG-licensed energy supplier (you can choose your supplier independently of your standard energy provider)
Payments are made based on a per kilowatt-hour (kWh) rate. Tariffs vary by supplier, so comparing options is recommended.
Typical Earnings
SEG earnings depend on:
- The amount of excess electricity you generate
- The SEG tariff rate offered by your supplier
- Your household’s energy consumption habits
Annual payments typically range from £30 to £100 for a standard residential system.
The Warm Home Discount is another funding stream if you’re unable to get solar panels. It is due to open again at the end of 2025. You can get £150 one off payment off your electricity bill.
How Solar Panels Improve Energy Efficiency
Electricity Generation
Solar PV panels convert sunlight into electricity, allowing households to generate their own energy for lighting, appliances, and heating systems. This reduces dependence on the national grid and lowers energy bills.
Seasonal Performance
Solar panels operate even on cloudy days. While peak output occurs in summer, systems continue to generate electricity throughout the year. The panels require minimal maintenance and usually last 20 to 25 years.
Carbon Reduction
Generating electricity on-site reduces the need for fossil fuel-generated power, contributing to national climate targets and lowering household carbon emissions.
Why These Schemes Exist
The UK Government has committed to reaching net zero carbon emissions by 2050. Supporting domestic renewable energy installations is a key part of this strategy. These schemes:
- Improve home energy efficiency
- Reduce national demand for fossil fuels
- Address fuel poverty among vulnerable households
- Increase public adoption of renewable technologies
Energy companies are also subject to legal obligations under schemes such as ECO4 to contribute to this national transition.
Use our eligibility checker to find out if you could apply for funding for solar panels.