UK Government Solar Grants and Support Programs
- ECO4 Scheme – Free Solar Panels for Eligible Households
The Energy Company Obligation (ECO4) scheme is a government-backed initiative aimed at helping low-income households improve their home energy efficiency. Running until March 2026, the scheme provides free solar panels, insulation, and other energy-saving upgrades.
Who Can Apply?
- Homeowners or private tenants with landlord approval
- Households receiving government benefits (Universal Credit, Pension Credit, etc.)
- Homes with a low Energy Performance Certificate (EPC) rating (D, E, F, or G)
How to Apply
Homeowners can apply by contacting an ECO-approved installer or their energy supplier to check for eligibility.
- Home Upgrade Grant (HUG2) – Assistance for Off-Grid Homes
The Home Upgrade Grant (HUG2) helps households that are off the gas grid install solar panels and other renewable energy technologies to lower energy bills and reduce carbon emissions.
Eligibility Criteria
- Property must be off the gas grid
- Household income must be within a low-income threshold
- EPC rating must be D or lower
How to Apply
Applications can be submitted through your local council, which manages the distribution of HUG2 funding.
Other Financial Incentives for Solar Panels in the UK
- 0% VAT on Solar Panel Installation
The UK government introduced a 0% VAT rate on solar panels in April 2022, reducing the overall installation cost. As of February 2024, this VAT exemption has been extended to solar battery storage, making it even easier for homeowners to invest in renewable energy.
- Smart Export Guarantee (SEG) – Earn Money from Solar Energy
The Smart Export Guarantee (SEG) allows homeowners to sell excess electricity back to the national grid, creating an additional source of income. Unlike the previous Feed-in Tariff (FiT), SEG payments are offered through energy suppliers, and rates vary depending on the provider.
How to Enroll in SEG
- Install a certified solar panel system
- Register with an SEG-approved energy supplier
- Ensure you have a smart meter to track exported energy
Regional Solar Grant Programs in the UK
- Warm Homes Nest Scheme (Wales)
The Nest scheme in Wales provides free solar panels and insulation to qualifying households to help reduce energy bills.
- Home Energy Scotland Loan & Grant
Scottish homeowners can apply for interest-free loans and grants to install solar panels and adopt renewable energy solutions.
Conclusion
The UK government offers various solar grants and incentives to encourage homeowners to transition to clean energy. With funding options such as ECO4, HUG2, 0% VAT relief, and the SEG scheme, there are multiple ways to reduce the cost of solar panel installation. By applying for these grants, you can make your home energy-efficient, reduce electricity bills, and contribute to a greener future.