Solar Panel Grants: What’s Available
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In Summary: What Solar Panel Grants Are Available?
Our guide to solar panel grants is a 10-minute read. If you’re short on time, bookmark this guide and read our quick-fire summary instead…
There are government grants available that enable some households to get free solar panels, using schemes such as ECO4, HUG2 and Nest (Wales).
To qualify, it’s likely you’ll need to be receiving a means-tested benefit, as well as living in a property that has an EPC rating of E or worse.
Alongside these government grants, there are other funding and income opportunities available.
As long as your installation is completed by a MCS certified installer, you’ll be able to receive a discount in the form of 0% VAT, as well as sell excess electricity back to the grid via the Smart Export Guarantee (SEG).
Get fixed prices on your system by jumping over to our clickable solar panel tool here.
Guide To UK Solar Panel Grants
Free Solar Panels
First off, let’s discuss the possibility of getting free solar panels via government grants. Grants offering free solar panels aren’t common. To be eligible, at the very least you’d be receiving a means-tested benefit from your local authority.
There are some grants that offer the possibility of getting free solar panels. We’ve covered all of these government grants in detail below, they include:
Top Government Solar Panel Grants
Solar panel grants come in all shapes and sizes. From 0% VAT, earning an income from selling back to the grid and even funding that could lead to free solar panels (although this is uncommon).
Here are the top UK solar panel grants and schemes…
Government 0% VAT Scheme
The UK government is having a huge push towards net-zero. One of the most important things they’ve done to help push this target forward is to introduce a 0% VAT rate on green energy materials.
The list of materials that are eligible for the new 0% VAT rate government grant is extensive and includes the likes of:
- Heating controls
- Insulation
- Ground source heat pumps
- Air source heat pumps
- And of course...solar panels!
But what does this mean in terms of cost savings?
If your system has a material cost of £10,000 under the usual VAT rate of 20%, £1,666.67 of that £10,000 would be VAT. With the 0% rate, you’d see a saving of £1,666.67 for a total cost of £8333.33; a substantial saving!
The switch to 0% VAT happened back on May 1st 2023 and will continue until March 31st 2027. At this point, green energy materials will be subject to 5% VAT (still a lot lower than the usual 20%). However, it's likely as the scheme comes to an end in 2027 that it's extended and the 0% VAT rate continues.
All UK households are eligible. And to get the 0% VAT rate on green energy materials you won’t need to do anything. Your MCS registered installer will obtain the 0% VAT rate on your behalf.
More details can be found on the government website here.
And you can use our solar panel tool here to get fixed prices on-screen for your system. The 0% VAT rate will be automatically applied.
Smart Export Guarantee (SEG)
The Smart Export Guarantee (SEG) is a government scheme setup to allow households to generate electricity for any excess energy they generate using solar panels.
SEG tariffs range dramatically, with payments currently sitting anywhere from 5p-29p per kWh.
Shopping around for the best tariff can have a huge impact on how much money you can make. Remember, you don’t have to use a tariff offered by your current electricity supplier.
The big question is, how much should you expect to save?
A typical household using solar panels (but not the SEG scheme) is likely to save up to £330 per year, according to the Energy Saving Trust:
However, these savings rise dramatically to around £600 per annum when plugging into the grid and selling back excess electricity by using the SEG:
The most important thing to remember here is to be eligible, you’ll need to have your solar panel system installed by an MCS registered engineer.
All of our engineers are MCS registered, and you can get a quote on your solar panel system that’s eligible for SEG by jumping over to our solar panel pricing page here.
You can read more about the Smart Export Guarantee and how to apply by visiting Ofgem here.
Nest (Wales)
Nest is a Welsh government solar panel grant. There's a chance you'll be eligible for free solar panels if you live in Wales. And alongside solar panels, they also offer funding for insulation and air source heat pumps.
To be eligible for the Nest solar panel grant in Wales, you need to fit the following criteria:
- Own your property, or rent it (it can't be owned by a housing association or a local authority)
- The property you live in has a poor EPC rating of 54 (D) or worse
- You're considered a low income household or receiving a means-tested benefit
If you're a homeowner you'll need to provide details such as mortgage statements, building's insurance and the deeds to your property.
Means-tested benefits that are eligible include (but are not limited to) the likes of:
So, how do you see if you're eligible and apply for the Nest solar panel grant?
You can call them directly (0808 808 2244), or crosscheck eligibility criteria here.
If you’re not eligible for the Nest solar panel grant, you can get competitively priced solar panel installation quotes from Dwellow by clicking over to our solar panel page here.
Home Upgrade Grant (HUG2)
The Home Upgrade Scheme (HUG2) provides households with energy efficient upgrades, a lot of the times fully funded. Unfortunately, this solar panel grant is only available in England, although other solar panel grants cover both Scotland and Wales.
If any of this sounds like you / your household, you could be eligible for HUG2:
Alongside grants for solar panels, you may be eligible for other property upgrades including the likes of:
Some local authorities have different criteria from others, so it’s worth contacting your local council.
Still not sure if you’re eligible? You can apply and check eligibility by checking the government grant application page here.
Not eligible for the HUG2 government solar panel grant? You can still benefit from 0% VAT on materials and use SEG to sell energy back to the grid.
Use our system configuration tool to get prices on solar panel installation here.
ECO4 & LA Flex
ECO4 is a government scheme to provide funding towards clean energy installations, with some households being eligible for free solar panels.
The scheme started in 2022 (formerly known as ECO3) and will run until March 2026. However, like most government clean energy grants, it's likely in 2026 this will be extended, or replaced with an updated grant.
To be eligible for ECO4 you'll first need to be living in a property that has an EPC rating of E or worse.
Alongside this, there are various other qualifying criteria. One of the main ones being that you're receiving a means-tested benefit such as:
- Child Tax Credit
- Universal Credit
- Employment and Support Allowance
- Working Tax Credit
- The list goes on...!
However, not all means-tested benefits result in you automatically qualifying. For instance, the likes of Carer's Allowance and Attendance Allowance don't allow you to qualify.
If you’re not eligible for ECO4, you may be eligible for at least something via the government's LA Flex scheme. To find out more and apply for ECO4 or LA Flex, you’ll need to contact your local authority and discuss exact eligibility criteria.
Not eligible for ECO4? We offer some of the most competitive prices for solar panel installation in the industry. You can get fixed prices on-screen for solar panels here.