Solar Panel Grants UK 2025: What's Available?
The honest answer: there is no universal government grant that any UK homeowner can apply for to get free solar panels. However, there is significant support available depending on your circumstances — and for households that don't qualify for grants, 0% VAT makes solar panels considerably cheaper than they were a few years ago.
Here's a complete breakdown of everything available in 2025.
ECO4: The Main UK Solar Panel Grant
The Energy Company Obligation 4 (ECO4) is a government scheme that requires large energy suppliers to fund energy-efficiency measures — including solar PV — in low-income and vulnerable households.
Who qualifies for ECO4?
You need to meet both of these criteria:
1. Qualifying benefit
You or someone in your household must receive one of:
- Universal Credit
- Pension Credit (Guarantee or Savings Credit)
- Child Tax Credit or Working Tax Credit
- Housing Benefit
- Income-based Jobseeker's Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Child Benefit (subject to a household income cap of £31,000 or less)
2. Property condition
Your property must have an EPC rating of D, E, F, or G. Most older UK homes that haven't been recently insulated will meet this requirement.
What does ECO4 cover?
Solar PV panels are a qualifying measure under ECO4. The scheme is designed to improve the overall energy efficiency of homes, so solar is often funded alongside loft insulation, cavity wall insulation, or other measures. The cost of the installation is covered by the energy supplier — you pay nothing.
0% VAT on Solar Panels
This isn't a grant but it's real money off the price. Since April 2022, solar panels, battery storage, and heat pumps installed on residential properties in England are zero-rated for VAT. On a £7,000 installation, that's a £1,167 saving compared to paying 20% VAT.
The 0% rate applies to:
- Solar PV panels
- Battery storage systems
- Associated installation labour and equipment
- Heat pumps and associated equipment
This exemption is guaranteed until March 2027.
Smart Export Guarantee (SEG)
The SEG is a government requirement that obliges licensed electricity suppliers with 150,000+ customers to offer you a payment rate for surplus electricity you export to the National Grid.
Key facts:
- Your installation must be MCS-certified (all our installations are)
- You apply to your chosen energy supplier for an SEG tariff
- Rates vary: competitive suppliers offer 10–24p/kWh in 2025
- A typical 4kW home system exports ~1,700 kWh/year, earning £170–£408
Home Upgrade Grant (HUG2)
The Home Upgrade Grant is a local authority-administered scheme for low-income households in England with homes that don't use mains gas for heating. Solar panels may be included as part of an improvement package. Availability varies by local authority — check with your local council or visit the GOV.UK website.
What If I Don't Qualify for a Grant?
If you don't qualify for ECO4 or HUG2, solar panels are still one of the best home investments available:
- 0% VAT already takes 20% off the price
- 7–9 year payback at current electricity prices
- 25-year panel warranties mean decades of free electricity after payback
- SEG payments provide ongoing income
- Solar panels increase property value and EPC rating
Beware of Scams and Misleading Claims
Be cautious of companies claiming you can get "free solar panels" through a government scheme without any eligibility checks. Legitimate ECO4 funding requires proper eligibility assessment. Always use an MCS-accredited installer and check their credentials on the MCS Find an Installer website.
Check Your Eligibility
We're a local, MCS-accredited solar installer based in Eastbourne. We can assess your eligibility for ECO4 funding, explain your options, and provide a free no-obligation quote whether or not you qualify for a grant.
Lee Standell
Solar Energy Specialist at Eastbourne Energy