Solar panel grants are available for residential solar panels across the UK with several government-backed grants and schemes. However, eligibility depends on a range of factors include household income and area.
There are many reasons why you may choose to install solar panels on your home including increased home value, greater efficiency, cheaper electricity bills and a reduced carbon footprint. But how feasible is it to get solar panels installed on your home?
Solar Panel Grants in the UK
Solar panel grants are designed to encourage consumers to install solar panels on their house at little or no cost. These grants are backed by the government in collaboration with large energy suppliers.
By offering loans, grants and subsidies to help with the large upfront costs of solar panels, the government is making it easier for large-scale adoption of clean energy solutions.
Types of Solar Panel Grants Available
There are various types of grants including 0% VAT for solar panel purchases, free solar panel installation or even paying homeowners for renewable energy that is sent back to the National Grid.
ECO4 Grant
With this grant, it’s possible to get free solar panels. Eligibility is based on factors including household income, property type, and current energy efficiency measures.
Depending on eligibility, you may be able for solar panel installation or other heating measures such as an air source heat pump installation, cavity wall insulation or boiler upgrade.
The ECO4 grant is available through various solar panel installers. Once you fill in the online application to confirm eligibility, the company will confirm your benefits, inspect your home’s energy-efficiency measures and go ahead with your solar panel installation.
Solar Together
This initiative involves local authorities coming together to form collective solar panel buying groups. Through this, they allow homeowners and small businesses to get solar panels at competitive prices. The scheme encourages renewable energy use, reduces local carbon emissions and lower energy bills for homeowners.
Both homeowners and renters in participating council areas are eligible to apply.
Home Upgrade Grant Scheme
The Home Upgrade Grant Phase 2 scheme launched in April 2023, is designed to help finance low-income households in making their homes more energy-efficient. Eligible households can receive up to £10,000 covering solar panel installations alongside other home improvements for greater efficiency.
To be eligible, households must be off the national grade, with a low energy-efficiency rating and a combined gross annual income of under £31,000.
Smart Export Guarantee
Technically not a grant, the Smart Export Guarantee is a government scheme launched in 2020 to help homeowners earn money off of excess energy that they send back to the grid. Through this scheme, consumers can make up to £45-£80 a month on their solar panels.
Zero VAT
The UK government is offering zero per cent value added tax (VAT) – instead of the normal 20% – on some energy-saving materials such as solar panels. This tax reduction, available until March 2027, is to encourage wider adoption of renewable energy.
Grant Eligibility
The different grants available have different eligibility criteria. These are largely based on geographic location and income level.
- Geographic location – certain grants are only available in specific regions such as areas with high renewable energy targets
- Income level – there are specific grants targeted at low-income households to help create affordable renewable energy solutions
- Ownership status – some grants are offered only for homeowners living in their property (rather than renters or landlords)
- Energy performance – grants may target houses with a low existing energy efficiency score to help bring them up.
