Solar Panel Grants UK 2025
Complete guide to solar panel grants, funding options, and financial incentives for UK homeowners
Check Your EligibilityAre There Solar Panel Grants Available in the UK?
While the UK government no longer offers direct grants like the previous Feed-in Tariff scheme, there are still several financial incentives and funding options available for homeowners in 2025:
- 0% VAT on solar panels - Save up to 20% on installation costs
- Smart Export Guarantee (SEG) - Earn up to £150-300/year selling excess energy
- ECO4 Scheme - Free or heavily subsidized solar for eligible households
- Local authority grants - Regional funding programs in some areas
0% VAT on Solar Panel Installations
Since April 2022, the UK government has zero-rated VAT on solar panel installations for residential properties. This means you save the full 20% VAT on:
What's Included:
- Solar panels and mounting equipment
- Inverters and electrical components
- Battery storage systems
- Installation and labor costs
Typical Savings:
This VAT relief is available until March 2027 and applies automatically - you don't need to apply separately.
Smart Export Guarantee (SEG)
The Smart Export Guarantee requires licensed electricity suppliers to pay you for excess solar energy you export to the grid. This replaces the old Feed-in Tariff scheme.
How Much Can You Earn?
Based on a typical 4kW system generating 3,400 kWh annually, exporting 40% at 5p/kWh
Top SEG Tariffs (2025)
Note: You'll need a smart meter to qualify for SEG payments. Most suppliers install these for free.
Free Solar Panels Through ECO4
The Energy Company Obligation (ECO4) scheme can provide free or heavily subsidized solar panel installations for eligible low-income households.
Who Qualifies?
Route 1: Benefits-Based Eligibility
Receive any of these benefits:
Route 2: Low Income (LA Flex)
Household income under £36,000 per year
Additional requirement: Your property must have an EPC rating of D, E, F, or G
What Solar Installation is Covered?
- Solar PV panels (typically 3-4kW system)
- All mounting equipment and inverter
- Professional MCS-certified installation
- Installation warranty and ongoing support
- Often bundled with other measures (insulation, boiler)
Local Authority Solar Grants
Some local councils offer additional solar panel grants or loans. These vary by region and change regularly. Check with your local authority for current schemes.
Example Local Schemes:
Solar Together Group Buying
Group buying scheme available in many councils offering discounted solar installations through collective purchasing power. Savings typically 20-30% off retail prices.
Green Home Finance
Some councils offer interest-free or low-interest loans (0-3% APR) for solar installations, repayable over 5-10 years through council tax bills.
Regional Carbon Reduction Grants
Competitive grant programs in some areas (Scotland, Wales, Northern Ireland) offering £2,000-5,000 towards renewable installations.
Solar Panel Financing Options
If you don't qualify for grants, there are several financing options to make solar affordable:
Solar Loans
- APR typically 3.9% - 8.9%
- Terms: 5-20 years
- Unsecured (no property as collateral)
- Quick approval (often 24-48 hours)
Buy Now Pay Later
- 0% APR for 12-24 months (typical)
- No interest if paid within promotional period
- Flexible payment schedules
- Watch out for high APR after promotional period
Ready to Get Solar Panels?
Check which grants and funding options you qualify for. Get free quotes from MCS-certified installers.
Get Your Free Solar QuoteFrequently Asked Questions
Are solar panels free in the UK in 2025?
Solar panels are not universally free, but you may qualify for free installation through the ECO4 scheme if you receive certain benefits or have a household income under £36,000. Additionally, the 0% VAT rate effectively makes solar 20% cheaper for everyone.
How much can I earn from the Smart Export Guarantee?
SEG payments typically range from 3-15p per kWh exported, depending on your supplier. A typical 4kW system exporting 40% of generation (1,360 kWh/year) at 5p/kWh would earn around £68 annually. Higher tariffs like Octopus Outgoing (15p/kWh) could earn £204/year.
Can I get grants for solar battery storage?
Yes, battery storage is included in the 0% VAT relief when installed alongside solar panels. ECO4 may also cover battery storage in some cases. There are no specific standalone battery grants in 2025, but combined solar+battery installations qualify for all the same incentives as solar-only systems.
Do I need planning permission for solar panels?
Most residential solar installations don't require planning permission under permitted development rights. However, you may need permission if your property is listed, in a conservation area, or if panels significantly project above the roofline. Always check with your local authority.
How long does it take to get solar panels installed?
For private purchases, typical timeline is 4-8 weeks from quote to installation (survey, design, ordering, installation). For ECO4 funded installations, the process can take 8-16 weeks due to eligibility checks, surveyor visits, and approval processes.
Will solar panels increase my property value?
Yes, studies show solar panels can increase property value by 4-14% on average. They improve your EPC rating (making the property more attractive to buyers) and reduce energy bills, both of which are major selling points in today's market.
Start Your Solar Journey Today
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