Solar Panel Grants in the UK
The honest picture for 2026: there is no universal solar grant. Two means tested schemes can help some households, the council delivered Warm Homes: Local Grant and ECO4, and both have real conditions. For everyone else, 0% VAT until 31 March 2027 and Smart Export Guarantee payments are the incentives that apply. This page says who qualifies for what, when we last checked, and typical costs.
What is available right now
Schemes checked on 6 September 2026
There is no government grant that any homeowner can apply for to get free solar panels. Anyone telling you otherwise is selling something.
There is real help, but it is means tested and it comes with conditions. For everyone else, the support is 0% VAT and getting paid for what you export. Both are worth having and neither needs an application to a council. Here is the honest order to check them in.
Grants and funding
Means-tested; most homes qualify for 0% VAT instead
1. Warm Homes: Local Grant, start here
This is the council delivered route, and for most people in East Sussex it is the one to look at first. GOV.UK's guidance says a home has to be in England, low income, rated EPC D to G, and privately owned or privately rented. The guidance says the measures could include: insulation, solar panels, an air source heat pump if suitable.
In East Sussex the income test is a household income of £36,000 a year or less. You apply through the Warm Home Check service, not through an installer. We cannot put you on the scheme and neither can anyone else selling panels.
2. ECO4, open to new installations until 31 December 2026
ECO4 (the Energy Company Obligation) makes large energy suppliers pay for energy efficiency work in low income and vulnerable homes. Ofgem says the scheme will run until 31 December 2026, after a nine month extension.
Two things have to be true before ECO4 will look at your home. Someone in the household gets a qualifying benefit, such as Universal Credit, Pension Credit or Income Support. Income based Jobseeker's Allowance and income related Employment and Support Allowance also count, and some councils can nominate a household under a route called ECO4 Flex. The property also has to be rated EPC D to G, which covers most older homes that have not been insulated recently.
The catch on solar. Under Ofgem's ECO4 delivery guidance, solar panels count as a heating measure. They are funded only where the home is heated by a heat pump, by high heat retention storage heaters, or by another electric heating system that Ofgem rates as responsive enough. That heating can already be in the home, or it can be fitted as part of the same ECO4 work.
Two more conditions come with it. Some of the electricity the panels make has to be used by something that makes heat in the home, so a system that sends everything straight to the grid does not qualify. The home also has to meet Ofgem's insulation rules, either with insulation it already has or insulation fitted in the same job.
So if you have a gas boiler and you are keeping it, ECO4 will not pay for solar panels. If the same work replaces that boiler with a heat pump or electric heating, solar can be part of the package. That is a much bigger job, and it is better to know that now than after three phone calls.
What has closed
The Great British Insulation Scheme closed on 31 March 2026 and is no longer taking applications. If a company offers to sign you up to it, that tells you what you need to know about the company. The schemes on this page are the ones we could confirm were open on 6 September 2026.
3. 0% VAT and the Smart Export Guarantee
No income test, and these apply to every qualifying home
This is not a grant, but it is money off the price and everyone gets it. Solar panels and battery storage fitted at a home are zero rated for VAT. HMRC's guidance says the zero rate runs to 31 March 2027. After that, from 1 April 2027 these will revert to the reduced rate of VAT of 5%.
It covers the panels, a battery on its own or with panels, and the labour to fit them. On a £7,000 job, 5% VAT would add £350. So the relief is worth having, and it has an end date.
The Smart Export Guarantee, explained in the next section, then pays you for the electricity you export, whatever your income.
Expected from 2027
The government's Warm Homes Plan is expected to introduce low- or zero-interest loans for solar panels, batteries and heat pumps from 2027. Warm East Sussex says the details are expected later in 2026. Nothing is published yet, so we will not quote rates or amounts. When it lands, we will update this page.
Sources and review
ReviewedFunding schemes change with policy. We re-check these quarterly and move the date when we do.
- Energy Company Obligation (ECO) — Ofgem (accessed 2026-09-06)
- ECO4 Guidance: Delivery, version 4.0 (26 March 2026) — Ofgem (accessed 2026-09-06)
- Great British Insulation Scheme — Ofgem (accessed 2026-09-06)
- Smart Export Guarantee (SEG) — Ofgem (accessed 2026-09-06)
- Warm Homes: Local Grant — GOV.UK (accessed 2026-09-06)
- Energy-saving materials and heating equipment (VAT Notice 708/6) — HM Revenue & Customs (accessed 2026-09-06)
- Funding and grants — Warm East Sussex (accessed 2026-09-06)
- MCS: find an installer (the public certification register) — MCS (accessed 2026-09-06)
Smart Export Guarantee (SEG)
The Smart Export Guarantee is not a grant, but it means your solar panels earn you money for the power you send to the grid. Ofgem's guidance says licensed electricity suppliers with at least 150,000 domestic electricity customers are required to offer at least one SEG compliant tariff. Smaller suppliers can offer one if they choose.
- MCS certified installations qualify, and every installation we do is MCS certified
- Ofgem sets no national rate. Suppliers set their own and change them often, and most were 4p–15p per kWh when we checked on 6 September 2026
- You apply to a supplier for the tariff, and it does not have to be the one that sells you your electricity, so shop around
- Compatible with Octopus Flux, Agile and other smart tariffs
What you need to be paid
- An MCS certificate
- An export meter
- An export MPAN
The MPAN is the number that identifies your export supply.
Solar Panel Costs Without a Grant
Most people do not qualify, and solar is still worth doing. Here are typical costs for systems we install in East Sussex.
| System Size | Price Range | Best For | Annual Savings | Payback Period |
|---|---|---|---|---|
| 3kW | £5,000 – £6,500 | Smaller homes, 1–2 bed | £500–£800 | 7–9 years |
| 4kW | £6,000 – £8,000 | Average 3-bed home | £700–£1,200 | 7–10 years |
| 6kW | £8,100 – £10,000 | Larger 4-bed homes | £900–£1,300 | 8–10 years |
| 8kW+ | £10,200 – £12,500 | Large detached / commercial | £1,200–£1,800 | 8–10 years |
All prices include panels, inverter, mounting hardware, installation, and commissioning. 0% VAT applied. Battery storage available from £2,500 extra.
We will tell you honestly whether your roof is worth doing. If it is not, we will say so.
Watch out for “free solar” sales claims
Be careful with any company promising free solar panels through a government scheme with no eligibility check. Real funding always involves a proper check on your benefits and your EPC rating.
- Check the installer on the public MCS Find an Installer register before you agree to anything.
- Ask which named scheme the funding comes from, and what makes your home eligible for it.
- Expect a written, itemised quote — including what happens if the funding application is refused.
- Never pay a fee simply to “check eligibility”. We don't charge for it, and nor should anyone else.
Common Questions About Solar Grants
Here are the questions we get asked most often about grants, free solar panels, and government schemes.
Find Out What You Qualify For
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