Solar Panel Grants UK 2026: Every Scheme You Can Apply For
There is no single "free solar panels" scheme in 2026. But there are several government programmes that can significantly reduce the cost. Here is every grant, loan, and funding option available, who qualifies, and how to apply.
Quick summary
Warm Homes Plan: 0% interest loans for solar PV (from April 2027). Available to all homeowners.
ECO4 / GBIS: Fully funded solar for low-income households on qualifying benefits. Runs until March 2026 with Warm Homes Plan continuation.
Boiler Upgrade Scheme: £7,500 for heat pumps (not solar directly), but solar + heat pump is a powerful combination.
Smart Export Guarantee: Get paid 3-15p/kWh for electricity you export back to the grid.
0% VAT: No VAT on solar panel installations until March 2027. Saves £1,000-£1,500.
1. Warm Homes Plan: 0% interest solar loans
The government's Warm Homes Plan includes, for the first time, a dedicated Consumer Loans Scheme for solar panels, batteries, and heat pumps. This launches in April 2027 with up to £1.7bn in government-backed financing.
Key details
- 0% interest loans for solar PV, batteries, and heat pumps
- Available to all homeowners (not means-tested for the loan element)
- Monthly repayments designed to be offset by energy savings
- Expected launch: April 2027
Worth waiting for?
The loan scheme is still 13 months away. If you can afford solar now, every month you wait is a month of energy savings you miss. A typical 4kW system saves £60-£80/month. Over 13 months, that is £780-£1,040 in savings you would forgo by waiting. If you cannot afford the upfront cost, the 0% loan will be a genuine game-changer.
2. ECO4 / Great British Insulation Scheme
The Energy Company Obligation (ECO4) and Great British Insulation Scheme (GBIS) can fund solar PV installations for low-income households. These are the closest thing to "free solar panels" currently available.
Who qualifies?
- You must receive qualifying benefits (Universal Credit, Pension Credit, Income Support, income-based JSA or ESA, Child Tax Credit, Working Tax Credit, Housing Benefit)
- Or live in an eligible council tax band (bands A-D in England, A-E in Scotland and Wales)
- Your home should have a low EPC rating (D, E, F, or G)
- Solar is usually bundled with insulation measures as part of a whole-house upgrade
Act fast
ECO4 delivery targets end on 31 March 2026. After that, the replacement Warm Homes: Local Grant will take over, but full eligibility details are still being finalised. If you think you qualify, contact your energy supplier or check gov.uk/apply-eco-help now.
3. Boiler Upgrade Scheme (BUS): £7,500 for heat pumps
The BUS grant is for heat pumps, not solar panels directly. But it is worth mentioning here because solar panels and heat pumps are one of the most powerful combinations for cutting energy bills.
A heat pump uses electricity to heat your home. Solar panels generate free electricity during the day. Together, they can dramatically reduce your heating costs. The £7,500 BUS grant covers a large chunk of the heat pump cost, and solar panels then reduce the running costs further.
For more on heat pumps, see our complete heat pump guide.
4. Smart Export Guarantee (SEG)
The SEG is not a grant, but it provides ongoing income from your solar panels. All energy suppliers with more than 150,000 customers must offer a SEG tariff, which pays you for any excess electricity you export back to the grid.
What you can earn
- Export rates vary from 3p to 15p per kWh depending on supplier and tariff
- The best rates come from "agile" or time-of-use export tariffs (like Octopus Flux)
- A typical 4kW system exporting 50% of generation earns roughly £100-£250 per year
- You need a smart meter to claim SEG payments
5. Local authority grants
Some local councils offer additional grants or top-up funding for solar panel installations. These are typically means-tested and vary widely by area. Some councils have received funding through the Local Authority Delivery (LAD) scheme or the Home Upgrade Grant (HUG) to offer energy efficiency improvements including solar.
The best way to check is to contact your local council directly or search for "[your council name] energy grants" online. The Simple Energy Advice service can also point you to local schemes.
6. 0% VAT on solar panels
Since April 2022, solar panel installations for residential properties have been charged at 0% VAT (reduced from the previous 5% rate). This applies to solar panels, solar batteries, and other energy-saving materials installed in homes.
How much does this save?
On a typical solar installation costing £6,000, 0% VAT saves you £1,200compared to the standard 20% rate (or £300 compared to the old 5% rate). The 0% rate is confirmed until March 2027. If you are planning solar, installing before this date locks in the VAT saving.
What about "free solar panels"?
If you have searched for "free solar panels UK", you will find plenty of companies making big claims. Here is the reality:
- The Feed-in Tariff, which funded most "free solar" installations, closed to new applicants in March 2019. It is not coming back.
- ECO4 can fund solar at no cost to the homeowner, but only for low-income households on qualifying benefits.
- Companies advertising "free solar panels" today are usually offering lease or rent-a-roof arrangements. The company installs panels on your roof for free and owns them. They take the export payments and some of the electricity. You get reduced bills but do not own the panels or benefit fully from them.
Our advice
If you can afford to buy solar panels outright (or will be able to use the 0% loan from 2027), owning your panels is almost always better than leasing. You keep all the energy savings, all the export payments, and add value to your property. Lease arrangements can also complicate house sales.
How much do solar panels cost without grants?
| System | Typical cost (inc. 0% VAT) | Annual saving | Payback |
|---|---|---|---|
| 3-4kW solar PV | £5,000-£7,000 | £600-£900 | 8-12 years |
| 4kW solar + battery | £8,000-£12,000 | £800-£1,200 | 8-12 years |
Savings based on Q2 2026 electricity rate of 24.67p/kWh with 50% self-consumption. Actual savings depend on your location, roof orientation, usage patterns, and export tariff. Solar panels typically last 25+ years with minimal degradation.
Is solar worth it in 2026?
Yes, but the maths has shifted slightly. The Q2 2026 electricity rate drops to 24.67p/kWh (from 27.69p in Q1). Every kWh your panels generate saves you less than it did three months ago. In practice, this extends the payback period by roughly one year.
That said, solar panels still offer strong returns over their 25+ year lifespan, the 0% VAT saves over £1,000, and the Smart Export Guarantee provides additional income. If electricity prices rise again (as many forecasters expect in Q3 2026), the payback improves.
For a detailed calculation with your specific numbers, see our full guide: are solar panels worth it?
Get solar panel quotes
If you are ready to explore solar, get at least three quotes from certified installers to compare prices and system sizes. Here are some options:
OVO Solar & Heating
Solar panels and heat pumps from one of the UK's largest energy suppliers. Free home survey included.
Get a free survey →Blue Ape Renewables
Solar PV and battery systems from £6,575. MCS-certified installer with UK-wide coverage.
View packages →MCS Certified Installer Finder
The official directory of MCS-certified solar installers. Search by postcode to find approved installers near you.
Find installers →Some links above are affiliate links. We may earn a commission if you make a purchase. This does not affect our recommendations. See our affiliate disclosure.
Frequently asked questions
Can I get free solar panels in the UK?
Not through a universal government scheme. The Feed-in Tariff closed in 2019. Low-income households on qualifying benefits may get fully funded solar through ECO4 or the Warm Homes: Local Grant. Companies offering "free solar" are usually lease arrangements where they own the panels.
What solar panel grants are available in 2026?
The main options are: ECO4/GBIS for low-income households, the Warm Homes Plan 0% loan (from April 2027), 0% VAT on installations (until March 2027), the Smart Export Guarantee for export income, and local authority grants (varies by area). The BUS grant covers heat pumps which pair well with solar.
How much do solar panels cost after grants?
A typical 4kW system costs £5,000-£7,000 with 0% VAT already included. Low-income households may pay nothing through ECO4. From April 2027, the 0% loan means you can spread the cost with no interest. There is no direct grant that reduces the purchase price for most homeowners.
Is solar worth it with lower electricity prices?
Yes. At the Q2 2026 rate of 24.67p/kWh, a typical system pays back in 8-12 years with a 25+ year lifespan. The lower rate extends payback by about a year compared to Q1 2026, but solar remains one of the best long-term investments for reducing energy bills.
Do I need planning permission for solar panels?
Usually not. Most residential solar installations fall under permitted development rights. You will need planning permission if your home is listed, in a conservation area, or if the panels protrude more than 200mm from the roof. Check with your local planning authority if unsure.
Check what your home could save with solar
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Check your home →Related reading
Sources
- HM Government — Warm Homes Plan (published 21 January 2026)
- Ofgem — Smart Export Guarantee
- HMRC — VAT on energy-saving materials
- MCS — MCS Certification