Solar Panel Grants in the UK
The honest picture for 2026: there's no universal solar grant, but qualifying home installations get 0% VAT until March 2027, MCS-certified systems can earn Smart Export Guarantee payments, and eligible households can access ECO4 grant funding. This page explains who qualifies for what, and typical costs.
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:
With 20% VAT
£7,200 – £9,600
Now (0% VAT)
£6,000 – £8,000
The 0% VAT rate is currently guaranteed until March 2027. It applies to solar panels, battery storage, and associated installation labour on your home.
Grants (ECO4)
For eligible households only
There is no universal solar grant anyone can apply for. The main funded route is the Energy Company Obligation (ECO4), which can cover solar PV for households that receive a qualifying means-tested benefit — such as Universal Credit or Pension Credit — AND live in a property with an EPC rating of D, E, F, or G. Under ECO4 Flex, local councils can also nominate low-income or vulnerable households that don't receive a qualifying benefit.
If that could be you, we can check your eligibility for free and connect you with the right funding route. If an assessment shows ECO4 isn't open to you, the 0% VAT saving and SEG earnings below are the incentives that apply.
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 typically 4p–15p per kWh exported (2026)
- No cap on the amount you can earn
- Compatible with Octopus Flux, Agile and other smart tariffs
Typical SEG earnings
£70–£250
per year on a 4kW system with a competitive SEG tariff
Based on ~1,700 kWh exported annually at 4p–15p/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 | £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.
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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