Solar Panel Grants in the UK
Confused about what solar panel grants, free solar panels, and government schemes are actually available in 2026? This page explains everything — who qualifies, what you can get, and what solar costs if you don't qualify for a grant.
ECO4 Scheme
Funded solar for eligible households
The Energy Company Obligation (ECO4) is the UK government's main route to funded solar panels. Energy suppliers with 150,000+ customers are required by law to fund energy-efficiency measures — including solar PV — in qualifying homes.
Who qualifies for ECO4?
You must receive at least one of these benefits AND live in a property with an EPC rating of D, E, F, or G:
- Universal Credit
- Pension Credit (Guarantee or Savings)
- Child Tax Credit or Working Tax Credit
- Housing Benefit
- Income-based JSA or ESA
- Income Support
- Child Benefit (subject to income cap)
0% VAT on Solar
Until March 2027 — a real saving
Since April 2022, solar panels, battery storage systems, and heat pumps installed in residential properties in the UK are zero-rated for VAT. This means you pay no VAT on the equipment or installation — a saving of 20% compared to the rate before this policy was introduced.
Example saving on a 4kW system:
Before 2022 (20% VAT)
~£8,400
Now (0% VAT)
From £6,999
The 0% VAT rate is currently guaranteed until March 2027. It applies to solar panels, battery storage, and associated installation labour on your home.
Smart Export Guarantee (SEG)
The Smart Export Guarantee isn't a grant, but it means your solar panels can earn you money for every unit of excess electricity you export to the National Grid. Energy suppliers with 150,000+ customers are legally required to offer you a payment rate for this exported power.
- MCS-certified installations automatically qualify
- Rates range from 5p to 24p per kWh exported (2026)
- No cap on the amount you can earn
- Compatible with Octopus Flux, Agile and other smart tariffs
Typical SEG earnings
£100–£300
per year on a 4kW system with a competitive SEG tariff
Based on ~1,000 kWh exported annually at 10–30p/kWh
Solar Panel Costs Without a Grant
If you don't qualify for ECO4, solar panels are still one of the best investments a UK homeowner can make. Here are typical costs for systems we install in East Sussex:
| System Size | Price Range | Best For | Annual Savings | Payback Period |
|---|---|---|---|---|
| 3kW | £4,999 – £6,500 | Smaller homes, 1–2 bed | £500–£800 | 7–9 years |
| 4kW | £5,999 – £7,500 | Average 3-bed home | £700–£1,000 | 7–9 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.
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
We're MCS-certified local solar installers based in Eastbourne. We can assess your eligibility for ECO4 funding, explain the 0% VAT saving, and give you a free no-obligation quote for a solar system tailored to your home.
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Certified installer
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East Sussex
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