Switching to solar power is a great way of cutting your energy bills and ensuring you have renewable, reliable supply of energy, but the upfront costs can present a challenge.

The good news is there are a range of national and local government-backed incentives and grants for solar panels available. Whether you’re in a low-income household or want to buy in a group from the same local area, there are ways to reduce the initial cost of solar installations. Here, we outline the main grants for solar panels that are currently on offer*.

Energy Company Obligation (ECO4) Scheme

The ECO4 scheme is a government initiative designed to help low-income households improve their energy efficiency. If you meet the eligibility criteria, you could receive fully or partially funded solar panel installation through your energy supplier.

• Who qualifies for the ECO4 Scheme?

Homeowners and tenants on income-related benefits (e.g., Universal Credit, Pension Credit, or Child Tax Credit). Eligibility is determined by your household income and energy efficiency rating.

• What does the ECO4 Scheme cover?

Funding for solar panel installation, insulation, and other energy-saving upgrades.

• How to apply

Contact your energy supplier or check with local authorities to see if you qualify.

• Key dates to know

The scheme ends on 31^st March 2026.

Warm Homes: Local Grants

These grants replace the previous Home Upgrade Grant programme, with the aim of streamlining the funding process. The scheme opens in spring 2025 and over the next three years will make £500 million available across 270 local authorities.

• Who qualifies for the Warm Homes: Local Grants?

Households in England who have a low income and live in a property with an Energy Performance Certificate (EPC) between D and G that is privately owned – either owner-occupied or privately rented.

• What does it cover?

Funding for solar panel installation, insulation, and other energy-saving upgrades.

• How to apply

See if your local authority has been allocated funding, then contact them for more information.

• Key dates to know

The scheme opens on 1^st April 2025 and will run until 2028.

Zero VAT on solar panels

In 2022, the government changed the VAT rate for energy-saving materials and products to 0%, to reduce the upfront cost of making homes more energy-efficient. These products include insulation, wind turbines, heating controls, heat pumps – and solar panels, of course.

• Who qualifies for zero VAT on solar panels?

Everyone is eligible for this, as long as you’re buying a qualifying product.

• What does it cover?

The VAT exemption applies to solar panels, battery storage, and other energy-efficient equipment.

• How to apply

The 0% VAT is automatically applied when purchasing and installing solar panels through a registered supplier.

• Key dates to know

This policy is currently set to run until 31^st March 2027.

Smart Export Guarantee (SEG)

The Smart Export Guarantee (SEG) is a government-supported scheme that ensures you get paid for any surplus electricity you feed back into the National Grid.

• Who qualifies for the SEG?

Anyone located in England, Scotland or Wales with one of the following technology types installed at their home or business: solar panels, wind, a micro-combined heat and power (micro-CHP system), hydropower, or anaerobic digestion (AD) – up to a capacity of 5MW (or up to 50kW for micro-CHP).

• What does the SEG cover?

Payments per kWh of electricity exported to the grid, with rates set by energy suppliers.

• How to apply

Sign up with an energy supplier offering SEG tariffs and get a smart meter installed.

Learn more about the Smart Export Guarantee

Local authority solar grants

Many local councils offer additional incentives, such as the Solar Together group-buying scheme, which helps homeowners secure discounted solar panel installations. The Solar Together scheme works by getting multiple people living in the same area to express an interest in having solar panels installed. Solar Together then organises an auction, where solar panel installers submit their quotes and the lowest number wins. The cost is then shared between the households that choose to proceed with the solar installation

• Who qualifies?

Homeowners, landlords, and small and medium-sized in participating council areas.

• What does it cover?

Discounted solar panels and installation – through Solar Together, you can expect to get around 30-35% off the market price of a solar panel installation.

• How to apply

Visit Solar Together or check your local council’s website for available schemes in your area.

SOPOCO Group Buy Scheme

If your local authority is not currently offering a group-buying scheme, you can still benefit from a group discount on your solar installation, with our very own Group Buy Scheme.

Whether you gather with friends, family or neighbours, the only condition is that all properties are within a 2-mile radius. You can reduce the cost of solar panels for everyone in your group by hundreds of pounds – so contact us today for more information.