If you're thinking about installing solar panels in the UK, there are several government incentives that can help make the cost more affordable. These schemes are designed to lower the upfront investment and ensure you get long-term financial benefits from going solar.
UK Solar Grants and Government Schemes
The Game-Changer:
0% VAT on Solar
Right now, homeowners in Great Britain pay 0% VAT on the supply and installation of solar panels, battery storage, and other renewable tech. This limited-time incentive can save you £1,000–£3,000 upfront on a typical system.
But it won’t last forever -the VAT rate is set to increase back to 5% from April 1st, 2027, making now the best time to install.
To qualify, your system must be fitted on a residential property and installed by an MCS-certified provider who also supplies the equipment.
Maximising Returns with the Smart Export Guarantee (SEG)
The SEG guarantees that energy suppliers pay you for any extra electricity your solar panels export back to the National Grid. Most big suppliers offer rates around 13p/kWh, but some premium tariffs can reach 24p/kWh if you also buy your electricity from the same provider.
To get the best deal, it's worth shopping around — but remember, exporting isn’t where the biggest savings come from. Since export rates are usually lower than what you pay to buy electricity from the grid, you’ll save more by using or storing your solar energy at home instead of sending it back.
ECO4 and the Warm Homes Plan
ECO4 can cover up to 100% of the cost of solar panel installation for eligible households, including social housing tenants and low-income families.
The Warm Homes Plan launches in 2025, and the scheme is scheduled to end on 31 March 2026.
The scheme will offer up to £30,000 for energy-saving upgrades, including solar panels, for low-income households and renters in England and Wales. Eligibility usually depends on having an EPC rating of D–G and a household income of £36,000 or below.
These programmes make solar power far more accessible for the people who need it most.
If you have any questions, please contact us!
We’re happy to support you through every step of the financing process.
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