Best Solar Panel Grants & Incentives in the UK (2025 Guide)

There is no single nationwide grant that pays for a full solar panel system for every UK homeowner in 2025. However, there are several powerful ways to reduce the cost of installing home solar – and in some cases, you may be able to get panels or related upgrades heavily subsidised if you meet certain criteria.

This guide focuses on domestic homes (not businesses) and brings together the main support options available across England, Scotland, Wales and Northern Ireland, including:

• Government-backed schemes that sometimes include solar for eligible homes
• Zero-rate VAT on solar panels, batteries and installation
• Smart Export Guarantee (SEG) payments for the energy you export
• Local authority and housing association initiatives
• Financing and pay-monthly options that work alongside grants

Below you will find an overview of each major scheme and how it can help cut the cost of going solar in 2025.

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Main UK schemes that can help with solar in 2025

Some of the schemes below are primarily targeted at insulation, heat pumps or heating upgrades, but they may also cover solar PV or solar batteries in specific local projects or pilot areas. Eligibility usually depends on your household income, benefits, EPC rating and property type.

1. ECO4 (Energy Company Obligation, 2022–2026)

ECO4 is a UK-wide energy efficiency scheme that runs until March 2026. It is funded by the big energy suppliers and aims to reduce fuel poverty and cut carbon emissions.

The core focus of ECO4 is on improvements such as insulation and efficient heating systems. However, in some regions and under certain projects, ECO4 funding can be combined with solar panels where this delivers a suitable uplift in your home’s EPC rating.

Who ECO4 is mainly for:

• Low-income households
• Homes with low EPC ratings (E, F or G in many cases)
• People receiving certain income-related benefits

The exact measures covered vary by installer and area, so the best way to check if solar could be included for you is to complete a quick eligibility check and speak to an approved installer.

2. ECO+ / Great British Insulation Scheme (GBIS)

The Great British Insulation Scheme (often still referred to as ECO+) is another government-backed initiative designed to help households improve their insulation.

While the main focus is not solar PV, it is directly relevant because:

• Better insulation means you use less energy overall, making a solar system even more effective.
• Improving your home’s EPC rating may unlock access to other funding or improve your chance of approval for green finance products.

Some local authorities may be able to combine GBIS-funded insulation with other support for renewables like solar, so it is worth checking what is available in your area.

3. Home Upgrade Grant (HUG) – England only

The Home Upgrade Grant is aimed at low-income homes in England that are off the gas grid and have poor energy efficiency. Local authorities apply for funding and then offer measures to qualifying households within their area.

Depending on the council and phase of the scheme, eligible measures can include:

• Insulation and draught-proofing
• Low-carbon heating (e.g. heat pumps)
• In some projects, solar PV panels and battery storage

Because HUG is delivered locally, the availability of solar varies significantly by region. If you think you may be eligible, it is worth contacting your local council or using our form above so we can check for you.

4. Boiler Upgrade Scheme (BUS) – for heat pumps and low-carbon heating

The Boiler Upgrade Scheme in England and Wales offers grants (usually £7,500) to help homeowners replace old fossil-fuel boilers with low-carbon heating systems, such as air source or ground source heat pumps and, in some cases, biomass boilers.

The scheme itself does not directly fund solar PV panels. However, heat pumps and solar often go hand-in-hand:

• Solar can generate some of the electricity your new low-carbon heating system needs.
• Combining solar + battery + heat pump can greatly reduce running costs and reliance on the grid.

If you are considering a heat pump and solar together, an installer can design an integrated system and help you claim the BUS grant to reduce the overall project cost.

5. Smart Export Guarantee (SEG)

The Smart Export Guarantee is not a grant, but it is a key part of the financial picture for home solar in 2025. Under SEG, licensed electricity suppliers must offer a tariff that pays you for the excess renewable electricity you export to the grid.

How it helps:

• You are paid for every kWh of electricity you export from your solar panels.
• You can shop around for the best tariff – some suppliers pay significantly more than others.
• SEG payments operate alongside any grants or incentives you may receive.

To access SEG you will need a smart meter, an MCS-certified solar installation and proof of ownership. Many homeowners use their SEG income to help shorten the payback period of their solar investment.

6. Zero VAT on solar panels and batteries (UK-wide)

As of 2025, most home solar panel systems, related equipment and installation work benefit from a 0% VAT rate across the UK on qualifying energy-saving materials.

In practice, this means:

• No VAT is charged on the supply and installation of most domestic solar systems.
• The VAT saving can be equivalent to several hundred or even thousands of pounds, depending on the system size.
• In some cases, battery storage installed alongside solar is also eligible for 0% VAT.

This VAT relief applies regardless of income, benefits or EPC rating – it is available to virtually all UK homeowners installing qualifying energy-saving measures.

7. Local authority, devolved government & housing schemes

In addition to the main national schemes, there are local and devolved initiatives that can provide extra support for household solar:

• Scotland: Home Energy Scotland loans and grants may support solar PV and battery storage for eligible households.
• Wales: Schemes like Nest and Arbed have historically focused on insulation and heating, but some local programmes include renewables.
• Northern Ireland: NI-specific home energy grants and pilot projects sometimes support solar and insulation.
• Councils & mayoral combined authorities: Some run bulk-buy solar schemes or “Solar Together” style programmes to negotiate lower prices for residents.
• Housing associations: Many are adding solar to suitable social housing roofs, providing tenants with cheaper electricity.

Because these schemes change frequently, the most reliable way to find out what is currently available is to speak with a specialist who tracks updates across the UK.

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Do I qualify for a solar panel grant or subsidy?

Each scheme has its own rules, but the following factors are typically considered when deciding eligibility for grants or subsidies that could include solar:

• Household income: Many schemes target low-income homes or those receiving certain benefits.
• Benefits status: Universal Credit, Pension Credit, Income Support and similar benefits can increase your chances.
• Property type and ownership: Most grants require you to be an owner-occupier or private landlord.
• EPC rating: Homes with poorer energy efficiency (E, F or G) are often prioritised.
• Heating system: Off-gas properties or those using expensive fuels (oil, LPG, direct electric) are often targeted.
• Location: Local authority boundaries and devolved government rules can affect which schemes you can access.

You do not need to work all of this out yourself. Share a few details about your home and we can quickly identify which options are most realistic for you.

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How much can UK solar panel incentives save in 2025?

The amount you can save depends on your roof, energy use and which incentives you can access. Here is how the main support mechanisms typically help:

Upfront cost reductions

• 0% VAT: Immediately saves the 5–20% VAT that might otherwise be applied to your system.
• Grants & schemes: In some cases, part of the system (or related upgrades) can be funded, particularly for low-income or off-gas homes.
• Local group-buy projects: Bulk-buying can secure lower installation costs.

Ongoing savings & income

• Lower energy bills: A well-sized solar array can cover a significant portion of your daytime electricity use.
• Battery storage: Increases self-consumption and allows you to shift solar energy into the evening.
• SEG payments: You are paid for any surplus energy exported back to the grid.

For a typical 3–4 bedroom UK home, it is common to see annual bill reductions of £400–£900 with solar alone, and potentially more when combined with a battery and time-of-use tariffs. Incentives simply help you reach that point sooner.

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Steps to claim solar grants and incentives in 2025

Because there is no single “apply here for free solar” button, the process usually involves a few simple steps:

1. Assessment of your home: Share details such as postcode, property type, roof orientation and estimated energy use.
2. Eligibility check: We identify which schemes, grants or local initiatives you could realistically access.
3. System design & quote: An accredited installer designs a system tailored to your home and budget.
4. Grant/finance application: Where applicable, we help guide you through any paperwork needed.
5. Installation & certification: Your system is installed by certified engineers and registered for SEG payments.

Handled correctly, most homeowners find the process straightforward – and the long-term savings are considerable.

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Frequently asked questions about UK solar grants (2025)

Can I still get free solar panels in the UK?

The older “free solar” deals (where companies installed panels in exchange for your Feed-in Tariff income) are no longer available. In 2025, most homeowners either:

• Use savings or finance to buy a system outright, benefiting from lower bills and SEG income, or
• Use grants and schemes to reduce the cost where they meet eligibility rules.

Are solar panel grants means-tested?

Many grants that can include solar (for example ECO4 or local authority schemes) are at least partly means-tested, focusing on low-income or vulnerable households. However, everyone can benefit from 0% VAT and SEG payments, regardless of income.

Can I get help with a solar battery in 2025?

Battery storage is increasingly included in modern home energy projects. While there is no universal battery grant, some local Home Upgrade Grant projects and devolved government schemes in Scotland may support batteries when installed alongside solar. The zero VAT rate can also apply to batteries when fitted as part of a wider energy-saving installation.

Do I need planning permission for solar panels?

In most cases, rooftop solar on houses and bungalows is considered permitted development and does not require planning permission, provided certain conditions are met (for example, panels should not protrude excessively from the roofline). Listed buildings, flats and conservation areas may have additional requirements, so it is wise to check with your local authority or installer.

How long do solar panels last?

Modern solar PV panels typically come with performance warranties of 20–25 years. Many continue generating useful electricity well beyond that, although output gradually decreases over time. Inverters and batteries usually have shorter warranties and may need replacing sooner.

Is 2025 a good year to install solar?

For many households, 2025 is an excellent time to install solar. Equipment prices have stabilised, energy prices remain high, 0% VAT continues to reduce upfront cost, and SEG payments can further improve returns. If you can also access additional grants or local incentives, the case becomes even stronger.