Costs and Savings

Grants and Funding Available

There is no direct solar panel grant available to most UK homeowners. The biggest financial benefit is VAT at 0% on installations, which saves £350–£600 on a typical system. Beyond that, support varies significantly by location and household circumstances.

Zero-rate VAT — the closest thing to a grant

Since April 2022, solar panels, battery storage, and associated installation costs have been zero-rated for VAT on residential properties in England, Scotland, and Wales. Previously the rate was 5%. This applies automatically to any qualifying installation — no application required.

ECO4 scheme

The Energy Company Obligation (ECO4) provides fully or partially funded energy improvements — including solar in some cases — to low-income households or those in fuel poverty. Eligibility depends on income, benefits receipt, and EPC rating. Your energy supplier administers the scheme.

Home Upgrade Grant (HUG2)

A government scheme providing funding for low-income households in properties not connected to the gas grid. Solar may qualify depending on local council implementation. Contact your local authority to check availability in your area.

Scotland: Home Energy Scotland

Home Energy Scotland offers interest-free loans of up to £15,000 for energy improvements including solar panels and battery storage. Available to homeowners and private landlords in Scotland only. Applications are made through Energy Saving Trust Scotland.

What does not exist

There is no blanket solar grant for average UK homeowners. Claims about "government solar grants" from cold callers typically refer to ECO4 — which has strict eligibility criteria — or are misleading. If an installer is promising a grant you have not applied for, ask them to show you the specific scheme name before proceeding.