Solar Panel Grants UK: What Funding is Available in 2026?

Are there any grants for solar panels in the UK?

As of May 2026, there are no universal upfront grants for solar panels available to most UK homeowners. The last major national grant scheme, the Feed-in Tariff (FiT), closed to new applicants in April 2019 (Ofgem FiT closure notice, 2019).

However, several mechanisms reduce the effective cost of solar panel installations:

• 0% VAT: All solar panel installations on residential properties are charged 0% VAT, saving around £1,000-£1,400 on a typical 4 kW system.
• Smart Export Guarantee (SEG): Licensed electricity suppliers pay you for surplus electricity you export to the grid.
• Local council schemes: Some councils and combined authorities run targeted grant or loan programs for solar panels, usually for low-income households.

Solar panels are not eligible for the ECO4 scheme, which focuses on insulation and heating measures for fuel-poor households.

0% VAT on solar panels

Since 1 February 2024, all energy-saving materials installed in residential properties, including solar panels, have been charged 0% VAT (HMRC Notice 708/6, updated April 2026). This applies to both materials and installation labor.

The 0% rate replaced the previous 5% reduced rate. For a typical 4 kW solar panel system costing £6,000, the zero-rating saves around £1,200 compared to the standard 20% VAT rate, or around £300 compared to the previous 5% rate.

The zero-rating applies automatically. You do not need to apply for it or meet any eligibility criteria. Any MCS-certified solar installer should charge 0% VAT on residential installations.

Eligible measures under the 0% VAT rate include:

• Solar panels (photovoltaic systems)
• Solar thermal panels (hot water systems)
• Heat pumps (air source and ground source)
• Battery storage systems installed alongside solar panels
• Insulation and draught-proofing

The 0% rate only applies to residential properties. Commercial and industrial solar installations are charged the standard 20% VAT rate.

Smart Export Guarantee (SEG)

The Smart Export Guarantee (SEG) requires all licensed electricity suppliers with more than 150,000 customers to offer at least one export tariff to small-scale renewable generators, including households with solar panels (Ofgem SEG guidance, updated May 2026).

SEG replaced the Feed-in Tariff scheme in January 2020. Unlike the FiT, which paid both a generation tariff and an export tariff, SEG only pays for electricity exported to the grid. There is no payment for self-consumed electricity.

SEG export rates vary by supplier and tariff. As of May 2026, rates range from around 4p/kWh (basic variable tariffs) to 15p/kWh (fixed-rate or time-of-use tariffs that pay more during peak demand periods). The average SEG rate is around 5-7p/kWh.

To qualify for SEG, your solar panel system must:

• Be installed by an MCS-certified installer
• Have a capacity of 5 MW or less (almost all domestic systems are under 10 kW)
• Have an export meter or smart meter that can measure export

You apply for SEG after your solar panels are installed. Most households apply to their existing electricity supplier, but you can shop around for the best export rate. Some suppliers require you to be a customer to access their SEG tariff; others do not.

A typical UK household with a 4 kW solar system exports around 30-50% of generation (the rest is self-consumed). At an average export rate of 5p/kWh, annual export earnings are around £100-£200. Higher SEG rates (10-15p/kWh) can increase this to £200-£300 per year.

SEG payments are made quarterly or annually, depending on the supplier. Payments are usually credited to your electricity account or paid by bank transfer.

Bristol City Council and WECA solar schemes

Bristol City Council and the West of England Combined Authority (WECA) have run several solar panel grant and loan schemes over the past decade, though availability varies year to year.

Current schemes (May 2026): As of May 2026, there are no active universal solar panel grants from Bristol City Council or WECA. However, both organizations occasionally launch targeted schemes for specific groups or neighborhoods. Check the following sources for current programs:

• Bristol City Council energy advice page
• West of England Combined Authority website

Past schemes: Bristol and WECA have previously offered:

• Solar Together (bulk-buying scheme): Group-buying program that negotiated discounted solar panel installation prices for Bristol residents. Offered in 2021-2023. Saved participants around 10-20% on installation costs compared to market rates.
• WECA Green Recovery Fund (2021-2022): Offered grants of up to £3,000 for solar panels to low-income households in the West of England region. Closed in 2022 when funding was exhausted.
• Affordable Warmth Grants: Bristol City Council occasionally allocates funding for home energy improvements, including solar panels, for households in fuel poverty. Eligibility usually requires receipt of means-tested benefits and an EPC rating of D or below.

If you are on a low income or receive means-tested benefits, contact Bristol City Council's energy advice team to ask whether any current schemes apply to you. You can also check with local housing associations, which sometimes offer grants or interest-free loans for solar panels to tenants and members.

Other local council schemes across the UK

Some local councils and combined authorities outside Bristol offer solar panel grants or loans. These schemes are typically small-scale and targeted at specific groups (low-income households, social housing tenants, or specific neighborhoods).

To find out what is available in your area:

1. Check your local council's website. Search for "solar panel grants" or "home energy grants."
2. Contact your council's environmental or energy team directly.
3. Check the Energy Saving Trust grants search tool, which lists active schemes by postcode.

Examples of recent local schemes (as of May 2026):

• Greater Manchester Combined Authority: Offers grants of up to £2,500 for solar panels to low-income households. Eligibility requires household income under £30,000 and EPC rating D-G.
• Scotland Home Energy Scotland Loan: Interest-free loan of up to £7,500 for solar panels (or up to £10,000 if combined with other measures like heat pumps or insulation). Available to all Scottish homeowners and private tenants with landlord permission.
• Wales Nest Scheme: Offers free or subsidized solar panels to Welsh households on low incomes or in fuel poverty. Eligibility linked to benefits or household income under £36,000.

Availability and eligibility criteria change frequently. Always check directly with the relevant authority for up-to-date details.

Why are there no national solar panel grants?

The UK government phased out national solar panel grants (the Feed-in Tariff) in 2019 for several reasons:

• Falling installation costs: Solar panel prices fell by around 70-80% between 2010 and 2020, making systems affordable for many households without subsidy.
• Budget constraints: The FiT was funded through energy bills (via the "policy costs" component of energy prices). The government decided to redirect funding toward insulation and heating measures through the ECO scheme.
• Policy focus shift: Energy policy in the 2020s has prioritized insulation, heat pumps, and fuel poverty reduction over solar generation. Solar panels do not directly address heating costs, which are the main driver of fuel poverty in the UK.

The 0% VAT rate and Smart Export Guarantee are now the main forms of government support for solar panels. These mechanisms reduce upfront costs and improve payback periods, but do not provide direct grants.

Can I get solar panels through the ECO4 scheme?

No. Solar panels are not eligible for funding under the ECO4 (Energy Company Obligation) scheme, which is the UK's main energy efficiency grant program for low-income and fuel-poor households (Ofgem ECO4 guidance, updated May 2026).

ECO4 focuses on measures that directly reduce heating demand and costs, including:

• Loft insulation
• Cavity wall insulation
• Solid wall insulation
• Underfloor insulation
• Heat pumps
• Boiler upgrades or repairs

Solar panels generate electricity rather than heat, so they do not qualify under ECO4's criteria. If you are eligible for ECO4, you can use it to fund insulation or heating improvements, then pay separately for solar panels if you want them.

For more on ECO4 eligibility and how to apply, see our full guide on the ECO4 scheme.

Solar panel loans and financing options

If you do not qualify for a grant and cannot afford to pay upfront for solar panels, several financing options are available:

• Personal loans: Many UK banks and building societies offer unsecured personal loans for home improvements. Interest rates range from around 4% to 10% APR, depending on credit score and loan term. A £6,000 loan over 5 years at 6% APR costs around £115 per month.
• Home improvement loans: Some lenders offer secured loans for home improvements, with lower interest rates than unsecured personal loans. However, your home is used as collateral, so there is a risk of repossession if you cannot repay.
• Green mortgages: A few mortgage lenders offer green mortgages with lower interest rates for energy-efficient homes or home improvements like solar panels. These are typically only available when taking out a new mortgage or remortgaging, not as standalone loans.
• Installer financing: Some solar panel installers offer financing plans, usually in partnership with finance companies. Rates vary widely. Always compare the APR with personal loans from banks to ensure you are getting a competitive rate.

Before taking out a loan, calculate whether the loan repayments are lower than your expected energy savings from the solar panels. If your monthly loan repayment exceeds your monthly energy bill saving, you will be out of pocket until the loan is repaid.

Should you wait for a grant or buy solar panels now?

Given the lack of universal grants in 2026, most UK households face a choice: wait in case a new grant scheme is launched, or buy solar panels now and benefit from the 0% VAT and SEG.

Factors to consider:

• Payback period: Even without grants, solar panels in most of the UK pay back in 8-12 years at current energy prices. Every year you wait is a year of foregone energy savings.
• Energy price trends: If electricity prices rise (as they have done in the 2020s), payback periods shorten. Waiting may mean missing out on future savings.
• Grant likelihood: There is no indication that the UK government plans to reintroduce a national solar panel grant scheme. Local schemes are possible but tend to be small-scale and targeted.
• Installation costs: Solar panel prices have been relatively stable since 2020-2021. Further price drops are unlikely in the near term.

If you can afford the upfront cost (or access low-interest financing), most households will benefit more from installing solar panels now rather than waiting for a grant that may never materialize.

If you are on a low income or in fuel poverty, it is worth checking with your local council or energy supplier to see if any targeted schemes are available. However, be aware that insulation and heating measures (which are covered by ECO4) usually deliver faster payback and greater fuel poverty reduction than solar panels.

Frequently asked questions

Are there any grants for solar panels in 2026?

As of May 2026, there are no universal upfront grants for solar panels in the UK. However, all residential solar installations benefit from 0% VAT (saving £1,000-£1,400 on a typical system), the Smart Export Guarantee pays you for surplus electricity (£100-£250 per year), and some local councils run targeted schemes for low-income households. Check your local council and combined authority websites for current programs.

Can I get solar panels through the ECO4 scheme?

No. Solar panels are not eligible for funding under the ECO4 scheme, which focuses on insulation and heating measures. ECO4 prioritizes measures that directly address fuel poverty and reduce heating costs. You can use ECO4 to fund insulation or heating improvements, then pay separately for solar panels if you want them.

What is the Smart Export Guarantee?

The Smart Export Guarantee (SEG) requires licensed electricity suppliers to pay you for surplus solar electricity you export to the grid. Rates vary by supplier but range from 4p to 15p per kWh as of May 2026. A typical household exports 30-50% of solar generation, earning £100-£250 per year. You must have an MCS-certified installation and an export meter to qualify.

Are there any Bristol-specific solar panel grants?

As of May 2026, there are no active universal solar panel grants from Bristol City Council or the West of England Combined Authority (WECA). However, both organizations occasionally run targeted schemes for low-income households or specific neighborhoods. Check the Bristol City Council energy advice page and WECA website for current programs.

Can I get free solar panels in the UK?

Free solar panel schemes (where a company installs panels on your roof for free in exchange for claiming the Feed-in Tariff payments) no longer exist in the UK, as the Feed-in Tariff closed in 2019. Any company offering "free" solar panels in 2026 is likely running a scam or a rent-to-own scheme with high long-term costs. Always check the contract carefully and get independent advice before signing.

How much does a solar panel system cost after the 0% VAT saving?

A typical 4 kW solar panel system costs £5,000-£7,000 installed, including the 0% VAT. A 6 kW system costs £7,000-£10,000. Battery storage adds £3,000-£6,000. The 0% VAT rate saves around £1,200 on a £6,000 system compared to the standard 20% VAT rate. All MCS-certified installers should charge 0% VAT automatically on residential installations.

Should I wait for a grant or buy solar panels now?

Most households will benefit more from installing solar panels now rather than waiting for a grant that may never materialize. Even without grants, solar panels typically pay back in 8-12 years, and every year you wait is a year of foregone energy savings. If you are on a low income, check with your local council for targeted schemes, but be aware that insulation and heating measures usually deliver faster payback than solar panels.