How to apply for solar panel grants in the UK

The cost of solar panels has fallen in recent years, but installation still represents a major investment. If you’re comparing upfront costs with long-term savings, our guide on ‘are solar panels worth it?‘ explains how grants and incentives can improve your return on investment.

The good news is that in 2025 there are several solar panel grants, loans and funding options available across the UK, some offering significant discounts and others covering the full cost for eligible households. Many are designed to help low-income families or homes with poor energy efficiency benefit from renewable power.

Before applying, it’s worth reviewing the best solar panels currently on the market to understand which systems offer the best efficiency, warranty, and long-term value. From the government’s ECO4 scheme and devolved programmes in Scotland and Wales to local Solar Together bulk-buying initiatives and the ongoing 0% VAT relief on installations, support for solar adoption has never been stronger.

This guide breaks down every major grant and funding scheme currently available, including who qualifies, how much you can receive, and how to apply, plus the best alternatives if you don’t meet the criteria.

UK solar panel grants and funding schemes at a glance

What solar panel grants and funding schemes are available?

Energy Company Obligation 4 (ECO4) grant

What it is

If you or someone you live with qualifies for state benefits, then the ECO4 grant could be for you.

It is a government efficiency scheme designed to tackle fuel poverty and cut carbon emissions.

As the name suggests, this is the fourth version of the scheme, it runs to 31 March 2026, and it is funded by big energy companies and administered by the energy regulator Ofgem.

Who is eligible?

You can get help if you earn less than £31,000 as a family, and receive one of the following benefits:

If you own your house, it must be rated D or lower for energy efficiency, and if you rent, it’s E or lower. If you are in social housing, you may get help for insulation and heating systems, but not solar installations.

You can apply with your energy company for up to £10,000 of funding. The scheme is for broad energy efficiency, so you might find that insulation and a smart thermostat are better uses of the funding for your energy use.

You can also receive help for air source heat pumps, electric storage heaters, loft and wall insulation, and smart heating controls.

How to apply

You can apply for the funding in England, Wales and Scotland, but not Northern Ireland, by contacting your local council or a big energy firm such as British Gas. A list of participating firms is on the Ofgem website.

About 18,700 homes have received solar panels or a heat pump through the scheme, according to data from the Department for Energy and Net Zero.

ECO4 Flex

What it is

ECO4 Flex, also called Local Authority (LA) Flex, is an extension of ECO4 that gives councils more flexibility over eligibility criteria. LA Flex allows local authorities – councils and local government, in this case – to set their own criteria for getting funding, which could mean that you might not need to be on benefits to qualify.

Who is eligible?

People who don’t meet the standard ECO4 requirements but are considered vulnerable, such as households just above the £31,000 threshold, older residents, or those with medical conditions made worse by cold homes.

It is targeted at people vulnerable to the effects of the cold, including the elderly and those with health problems.

Your local government website should indicate if it is part of the scheme and what criteria it has chosen. So, if you earn a little above the £31,000 for most applicants for the ECO4 scheme, applying through your local council might be the best plan.

How to apply

Check your local authority’s website to see if it participates and what criteria it has set. Applications are usually made directly through your council rather than your energ

Welsh Government Warm Homes Nest Scheme

What it is

The Nest Warm Homes Programme is targeted at disadvantaged communities in Wales on low incomes, and it is unusual in having no end date yet.

As with other schemes, you can apply for a plethora of improvements beyond a solar installation, including insulation and heating systems.

Who is eligible?

Naturally, this scheme is only for those who live in Wales. You will need to own a home or be a private tenant and receive a means-tested benefit or earn a low income.

Finally, you will need to be in a home with an energy efficiency rating of E or lower. If your rating is D and you or someone you live with has a health condition, you may also qualify.

The health conditions include respiratory diseases such as chronic obstructive pulmonary disease; circulatory diseases such as strokes and heart attacks; mental health struggles, dementia and developmental disorders.

There is no listed claim limit, although the Welsh Government said in 2023, that the average claim is £2,457.

How to apply

Contact Nest on 0808 808 2244 during office hours, Monday to Friday.

Northern Ireland Sustainable Energy Programme (NISEP)

What it is

The Northern Ireland Sustainable Energy Programme (NISEP) is an annual £8 million fund overseen by the Utility Regulator NI and delivered by local energy suppliers. It is funded through a levy on electricity bills and supports a range of energy efficiency improvements. While much of the funding focuses on insulation and heating upgrades, some suppliers also use it to subsidise solar panel installations or renewable technologies.

Who is eligible?

The programme is primarily targeted at low-income and vulnerable households, often defined as those receiving benefits or struggling with fuel poverty. However, each year’s funding round is divided into “priority” and “non-priority” groups, meaning some schemes are open to all households, regardless of income, if budget allows.

How to apply

Unlike UK-wide schemes such as ECO4, there isn’t a single central application process. Instead, households apply directly through participating energy suppliers in Northern Ireland, such as Power NI or SSE Airtricity, depending on who is running funded projects that year. The list of approved schemes and eligibility criteria is published annually on the Utility Regulator’s NISEP page. Funding is limited and allocated on a first-come, first-served basis, so early application is advised.

Home Energy Scotland Grant and Loan Scheme

What it is

The Home Energy Scotland Grant and Loan scheme is for those living in Scotland and now covers solar thermal panels – those that heat water rather than generate electricity – and hybrid units that do both.

A £5,000 interest-free loan is available for these panels.

Who is eligible?

The criteria are much more relaxed than other schemes and anyone in Scotland can apply if they are doing so for their own home.

The loans are interest-free, although a 1.5 per cent fee is applied to the loan. Even after this fee is applied, it is still a very cheap way to borrow for these panels if you live in Scotland.

How to apply

Ring Home Energy Scotland on 0808 808 2282 during normal office hours.

Warmer Homes Scotland

What it is

Warmer Homes Scotland is the Scottish Government’s flagship fuel poverty programme, delivered by Warmworks. It provides a tailored package of energy efficiency measures worth up to £10,000 per household, which can include insulation, new heating systems, draught-proofing, and in some cases renewable technologies such as solar panels or heat pumps. The scheme launched in 2015 and has already helped tens of thousands of Scottish households cut their bills and carbon emissions.

Who is eligible?

The programme is aimed at households struggling with fuel poverty — typically residents on low incomes or those considered vulnerable due to age, disability, or health conditions made worse by living in a cold home. To qualify, applicants must usually own their property or rent privately (with landlord consent), live in Scotland, and meet specific income thresholds. Priority is often given to homes with poor energy efficiency ratings (EPC band E, F or G).

How to apply

Applications start with a call to Home Energy Scotland (0808 808 2282), which will run through a short eligibility check. If you qualify, you’ll be referred to Warmworks for a free home survey. This survey identifies which improvements will have the biggest impact on your home, and the cost is covered by the Scottish Government. If solar panels or other renewable options are suitable, they may be included in your package. Funding is limited, so early application is recommended.

Solar panel discounts and incentives

Solar Together

What it is

Solar Together is a scheme to group-buy solar panels and batteries, keeping costs down.

Solar panel providers bid for the chance to install the solar panels. It is more of a bulk discount than a grant. It is available in certain local authorities that have signed up to the scheme.

Who is eligible?

This is probably the scheme with the broadest appeal. It’s open to homeowners and tenants who have gained their landlord’s permission in council areas that are part of the scheme.

It is UK-wide and can offer discounts of about a third compared to going it alone.

How to apply

Firstly, check that your council is part of the scheme. You can do that on the Solar Together website, where you can also apply.

Some councils have run the scheme in the past and then withdrawn, often due to a lack of interest. Solar Together encourages you to register your interest to show that there is demand if your local authority is not taking part.

Once you have applied, you wait until registration closes in your area. Then, solar installers are invited to bid for your work, with the cheapest winning.

This is particularly useful for those who don’t want to haggle themselves over their solar quotes.

0 per cent VAT on solar installations

What it is

The government typically applies VAT to most things, with food and children’s clothes being the big exceptions. Domestic power also receives some relief, being charged at 5 per cent, rather than the 20 per cent levied on much of everything else.

In 2022, the government decided to cut the 5 per cent it added to solar installations to zero in a bid to help homeowners to pay for them and get the UK closer to zero emissions.

The government plans to end the tax break in 2027, and while it could be extended, chancellor Rachel Reeves has been looking for ways to raise money for the Treasury, and solar panels may find themselves in the firing line.

Who is eligible?

If you are buying panels and installation, you automatically get the tax break. The tax is simply not applied.

Smart Export Guarantee

What it is

Replacing the previous feed-in tariff, the smart export guarantee was introduced in 2020 and ensures energy companies offer a rate for homeowners to sell their unused power back to the grid.

This is particularly important since many homeowners will use more power at home in the evening, while solar panels generate most power during the day.

Who is eligible?

It is available across the UK, and even if you have panels and a solar battery to use your panel-generated power later in the day, it’s important to have a good export agreement in place to get a good price for your power, since bigger homes may sell more than they use.

How to apply

The guarantee means power companies must offer a rate for selling to the grid, so there is no need to apply. But it is worth shopping around to ensure your purchased power is cheap and that you are getting a good rate when you sell, too.

How we did our research

To create this guide, we analysed the full range of UK government schemes, devolved nation programmes, and local authority initiatives currently offering financial support for solar panels. We consulted official sources including Ofgem, the UK Government, the Energy Saving Trust, and devolved administrations in Wales, Scotland and Northern Ireland.

We also spoke to accredited solar installers and reviewed advice from energy industry bodies to ensure the information is accurate and up to date. Where possible, we have linked directly to application pages so you can check eligibility and apply with confidence.

Why trust us?

The Independent has been reporting on green energy and climate matters since it was founded in 1986. Our Home Improvement team produces in-depth, impartial reviews on everything from the best solar panels to the cost of solar panel installation and the best solar panel installers in the UK. Each article is researched and fact-checked by our journalists, drawing on government data and expert interviews.

We do not accept payment to feature schemes or installers in our guides. Our aim is to give readers clear, reliable advice that helps them make informed decisions about their homes.

Who is eligible for solar panel funding?

Eligibility for solar panel grants in the UK varies by scheme, but most are targeted at households on lower incomes, properties with poor energy efficiency, or residents with specific needs.

Alternatives if you don’t qualify for solar panel grants

Not everyone will meet the criteria for government-backed solar panel funding schemes. If you fall outside the eligibility rules, there are still ways to reduce the cost of solar panels:

Frequently asked questions

Are there government grants for solar panels?

Yes, the ECO4 scheme offers grants and there is also support for Welsh families through the Welsh Government Warm Homes Nest scheme.

Are there solar panel grants for tenants and landlords?

Yes. Tenants will have to ask landlords for their permission to access some of these schemes, but most landlords will not object to improvements being made to their homes once they understand the nature of these schemes. The ECO4 scheme offers grants for tenants, as does the Welsh Government Warm Homes Nest scheme.

Can I get free solar panels?

It is possible to get free panels if you are on benefits or have a vulnerable family member living with you, such as someone with a serious health condition. The ECO4 scheme and the Welsh Government Warm Homes Nest scheme can offer free installation for those who qualify.

How long does the process take?

The time it takes to secure a solar panel grant or funding depends on the scheme. Some local or council-run grants can approve applications within a few weeks, while government-backed programmes may take one to three months, especially if surveys or inspections are required. Once approved, installation usually follows within several weeks. To avoid delays, apply early, submit all required documentation, and choose an installer accredited under the Microgeneration Certification Scheme (MCS).

Are solar panel grants worth applying for?

Yes, grants can significantly reduce upfront costs and shorten your payback period, making solar power more accessible. While large national schemes have ended, the zero VAT rate on installations (valid until at least 2027) and local and regional funding initiatives still offer valuable savings. Even smaller grants or low-interest green loans can make a difference, particularly when combined with the Smart Export Guarantee (SEG), which pays you for surplus energy sent back to the grid.