Solar Panel Funding Guide

How to pay for solar panels: what funding exists, what it typically costs, and how export payments work

0% VAT

On installed solar panels and batteries until 31 March 2027, then 5%

SEG

Get paid for electricity you export (Great Britain only)

~£7,600

Typical 4.5kWp system (Energy Saving Trust)

Typical costs, last reviewed September 2026. Your quote will depend on your home.

The Complete Process

From initial quote to installation and earning from your solar panels

Step 1: Get Quotes

Ask more than one installer to quote, and check each one on the MCS register before you sign.

MCS certification needed for SEG
Ask for a site survey
Ask for an itemised quote

Ask for Quotes

Step 2: Check the 0% VAT Rate

Installed solar panels and batteries are zero-rated for VAT. The installer applies it on the invoice; panels or batteries bought without installation are charged the standard rate.

VAT on installation:

Until 31 March 2027:0%

From 1 April 2027:5%

HMRC VAT Notice 708/6 (GOV.UK)

Step 3: Check Funding, Then Financing

There is no solar grant for everyone. Most people pay for solar themselves, but check these first:

Warm Homes: Local Grant (England)

Councils can fund solar panels for eligible households: privately owned homes rated EPC D-G, with income usually £36,000 or less (or via benefits or postcode). GOV.UK · 0800 098 7950

Warm Homes Nest (Wales)

Free improvements for eligible low-income households, which could include solar panels. GOV.WALES · 0808 808 2244

Paying Yourself or Borrowing

Paying upfront avoids interest. If you borrow, compare the APR and total amount repayable. Government-backed Warm Homes Plan loans have been announced but are not yet open to households.

Step 4: Register for SEG

Under the Smart Export Guarantee (SEG), suppliers pay you for electricity you export. You need an MCS-certified (or equivalent) installation and a meter that can provide half-hourly export readings. It is not available in Northern Ireland.

No set rate: 1p to 25p per kWh

Solar Energy UK table, 12 May 2026. The highest rates need you to buy electricity or an installation from that supplier. Rates change often.

Compare SEG tariffs

Ofgem SEG Information

Step 5: Installation

Your installer fits and commissions the system and gives you the certificate you need to apply for SEG payments.

Scaffolding erected (if needed)
Panels mounted and wired
Inverter installed
DNO notification submitted
System commissioned & tested

Step 6: Start Saving

Your system is now generating electricity and reducing what you buy from the grid.

Around £680-£930/year

Energy Saving Trust estimate with SEG payments (around £180-£330 without), four-bedroom detached home, July 2026 fuel prices. Not guaranteed.

Reduced electricity bills
SEG payments (frequency depends on the supplier)
Keep your panel and inverter warranties
Around one tonne of carbon saved a year (EST)

Official Resources & Links

GOV.UK - VAT on Energy-Saving Materials

HMRC Notice 708/6: 0% VAT on installed solar panels and batteries until 31 March 2027

GOV.UK - Warm Homes: Local Grant

Check eligibility in England; the council decides and arranges any work

Ofgem - Smart Export Guarantee

Scheme rules and the list of current SEG licensees

MCS - Find an Installer

Check an installer's MCS certification before you sign

Energy Saving Trust - Solar Panels

Independent advice on solar panel costs and savings

GOV.WALES - Warm Homes Nest

Free improvements for eligible households in Wales, which could include solar panels

UK Energy Partnership is run by Harber Glaves Trading Ltd. We are not a government body and cannot decide who gets funding — check eligibility with the official scheme.

Ready to Get Started?

Send a free enquiry and Better Home Hub can introduce solar installers who cover your area. Check any installer on the MCS register before you sign.

Send a Free Solar Enquiry