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The 10 solar panel grants & funding options UK
Here’s all you need to know about government grants for solar, including the new Warm Homes Loan Scheme.

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Solar panel grants: at a glance
Going solar can be an effective way to cut your electricity bills, but not everyone can afford the steep upfront cost.
The government's new Warm Homes Loan Scheme makes it cheaper to switch, by cutting the cost of borrowing. You can get a loan with a reduced interest rate from us and other approved lenders.
There are some other grants available, such as ECO4 and the Warm Homes: Local Grant, but they come with stringent eligibility criteria, as they're targeted at the most deprived homes in the country.
In this guide, we'll run through all the various initiatives, identify which households could qualify, and analyse how many homes each grant actually helps.
Sunsave is one of the Warm Homes Loan Scheme's approved lenders, and we offer solar panels, batteries and EV chargers. With Sunsave, you can pick from a variety of loan terms that last anywhere from three to 20 years.
If you'd like to see the savings you could get from a solar & battery system, just answer a few questions below, and we’ll provide an estimate.
Find out how much you can save
What kind of home do you live in?
What are the grants and schemes for solar panels?
There are currently eight schemes run by the government that help some households cut the cost of switching to solar, including the newly launched Warm Homes Loan Scheme.
Grant/scheme | Solar funding | Eligibility | Who applies? | When it expires | |
|---|---|---|---|---|---|
1. The Warm Homes Loan Scheme | Low-interest loans worth up to £30,000 | Homeowners and private landlords who pass credit and affordability checks | Homeowners and private landlords | 31 March 2030 | |
2. ECO4 | Up to 100% of cost | Electrically heated households with a resident who gets a qualifying benefit (England, Scotland, & Wales) | Homeowners | 31 December 2026 | |
3. Warm Homes Nest scheme | Up to 100% of cost | Energy-inefficient households which receive a means-tested benefit or are low-income (Wales) | Homeowners | April 2031 | |
4. Green Homes Wales | Zero-interest loan up to £25,000 | Homeowners (Wales) | Homeowners | 31 March 2027 | |
5. Home Energy Scotland Grant and Loan | Loans of up to £5,000 | Homeowners (Scotland) | Homeowners | No planned end | |
6. Warm Homes: Local Grant | Up to £15,000 | Energy-inefficient homes that are low-income, deprived, or get a qualifying benefit (England) | Local authorities | 31 March 2028 | |
7. Warm Homes: Social Housing Fund | Up to £7,500 | Any local authorities, providers, and charities that own social housing (England) | Landlords | March 2030 | |
8. VAT discount | Around £601–£2,406 | All households, no specific conditions (UK-wide) | No-one, it's automatic | 31 March 2027 |
There are also two non-government schemes that can help reduce the upfront cost of solar, to varying degrees.
Here are all the most important details about these initiatives.
Grant/scheme | Solar funding | Eligibility | Who applies? | When it expires | |
|---|---|---|---|---|---|
9. Green home rewards | Up to £1,000 in cashback | Households with a qualifying mortgage (UK-wide) | Homeowners | Varies by institution | |
10. Solar Together | 30-35% saving | Residents in participating areas (England & Wales) | Homeowners | Varies by locality |
Everyone can benefit from at least one of these programmes, but how much of a discount you can get on the cost of solar panels depends on your circumstances.
With the Warm Homes Loan Scheme, homeowners and private landlords can secure low-interest loans on home energy tech including solar panels, batteries, and heat pumps. More on this below.
Low-income and energy-inefficient households can access grants ECO4 and Warm Homes: Local Grant, which provide free solar panel systems, but come with stricter eligibility criteria. ECO4 also ends in December 2026.
A limited number of households in Wales can get a free system if they qualify for the Warm Homes Nest scheme, while most homes in Wales and Scotland can secure a loan from their respective governments.
We don’t discuss export tariffs on this page – as they aren't grants or a way to make solar panels cheaper – but you can learn about them by reading our Smart Export Guarantee guide, and by checking the best import and export tariff rates.
Are you eligible for a solar panel grant?
Wondering if you qualify for any of the government grants for solar panels? We've built a calculator to help you find out. Answer a few quick questions, and we'll immediately let you know whether you're likely to qualify.
However, please be aware that this tool should only be used for a rough indication of eligibility. To find out for sure if you qualify for any grants, you should follow the official application procedures (as described further down).
The calculator also doesn’t include the Warm Homes Loan Scheme, as it's designed to provide information specifically about grants for free solar panels.
1. The Warm Homes Loan Scheme
Requirements | Relaxed |
Who applies? | Homeowners and private landlords |
How to apply | Contact an approved lender |
Area covered | UK-wide |
Solar costs covered | Low-interest loans worth up to £30,000 |
When it started | October 2026 |
When it ends | 31 March 2030 |
The Warm Homes Loan Scheme, which launched in October 2026, allows homeowners and private landlords to secure a loan with a significantly reduced interest rate – and Sunsave is one of the scheme’s approved lenders.
You can use one of these loans to get any or all of: solar panels, batteries, a heat pump, a wind turbine, a biomass boiler, a heat network connection, and a micro hydroelectric system.
The government uses its fund of up to £300 million to pay grants to approved lenders. In return, the lenders must lower the interest rate on loans for these systems.
You can also add an EV charger to a loan that includes solar panels or batteries, as long as it doesn't push your borrowing over the funding limit.
These limits are £15,000 for solar panels, and £15,000 for a battery – meaning a £30,000 loan for a solar and battery system with an EV charger would be eligible.
You can get one of these lower-interest loans through Sunsave – and you can pay it off (in part or in full) at any time, for free. This includes our Home Battery Plus package, if you just want a battery.
We allow you to change either your term length or monthly payment amount when paying off your loan early.
This scheme is part of the UK government's multi-billion-pound Warm Homes Plan, which aims to reduce energy bills, emissions, and fuel poverty.
As well as the UK-wide Warm Homes Loan Scheme, the programme also includes a £5 billion commitment to fund free measures – such as solar panels – for low-income households and homes in fuel poverty.
The government is initially delivering this funding through existing initiatives, namely the Warm Homes Social Housing Fund and Warm Homes: Local Grant, before separating it into its own scheme.
To learn more, read our full guide to the Warm Homes Plan.
Are you eligible for the Warm Homes Loan Scheme?
You can qualify for a low-interest loan through the Warm Homes Loan Scheme if you own and live in the home you want to upgrade, or if you’re its private landlord.
You must borrow as an individual, not through a company, and pick an MCS-certified installer.
You also have to pass the lender's credit and affordability checks.
There are no other automatic eligibility criteria – no income limits, no benefit rules, and no energy-efficiency requirements – though lenders can add their own.
Private renters, social housing tenants and businesses aren't eligible, though renters could ask their landlord to apply.
Sunsave is one of the scheme’s approved lenders. We offer solar panels, batteries and EV chargers, with a variety of loan terms that last anywhere from three to 20 years.
How to apply for the Warm Homes Loan Scheme
To apply for a low-interest loan through the scheme, get in touch with one of the initiative's approved lenders.
Sunsave Energy Limited is authorised and regulated by the Financial Conduct Authority as a lender, and has been approved by the Department for Energy Security and Net Zero to offer loans under the scheme.
We provide solar panels, batteries, and EV chargers – and we're also one of the scheme's installers, thanks to our MCS-certified installation team.
This makes things easier, since the scheme has several moving parts, including eligibility checks, installer verifications, grant claims, and government reporting.
When one company handles every step of your loan, there's less for you to chase, and fewer things that can go wrong. We're currently the only firm providing this service.
You can find a list of all the scheme's approved lenders on the government's website.
If you'd like to see the savings you could get from a solar & battery system, just answer a few questions below, and we’ll provide an estimate.
Find out how much you can save
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2. ECO4
Requirements | Stringent |
Who applies? | Homeowners |
How to apply | Contact your chosen energy supplier |
Area covered | England, Scotland, & Wales |
Solar costs covered | Up to 100% |
When it started | July 2022 |
When it ends | December 2026 |
The fourth phase of the government's Energy Company Obligation scheme (ECO4), which aims to reduce fuel poverty and carbon emissions across Great Britain, began in July 2022.
The £4 billion scheme was originally set to end in March 2026, but the government has pushed this end date back to December 2026.
The initiative compels energy suppliers with more than 150,000 customers – like British Gas, Octopus, and OVO – to carry out domestic energy efficiency measures such as solar panels, heat pumps, and insulation in disadvantaged households.
These improvements must increase each home's Energy Performance Certificate (EPC) rating. For example, households in Bands F and G must reach a D for the project to count towards a supplier's total number of homes helped.
Suppliers implemented more than 767,000 measures under the scheme within its first three years, including more than 47,000 solar panel system installations.
The initiative doesn't include home batteries though, so you'd have to fund that purchase yourself.
To learn more, check out our full guide to the ECO4 scheme.
Are you eligible for ECO4?
You can qualify for ECO4 if you’re a homeowner, private renter (with your landlord's permission), or social housing tenant.
If you live in social housing and your property has an EPC rating of D, E, F, or G, you can also qualify for ECO4 measures.
And if you're not claiming the above benefits but earn under £31,000 per year, have health conditions worsened by a cold home, or are vulnerable to the effects of living in a cold home, you may also be able to qualify through your council's ECO4 Flex programme.
In the end though, suppliers will decide which measures – if any – to offer your household, so make sure you get multiple companies to assess your needs and propose improvements.
To get solar panels, you must use an electric heating system.
LA Flex: explained
The Local Authority and Supplier Flex (LA Flex) scheme is an extension of ECO4 that enables councils to help deprived homes which don't match ECO4's eligibility criteria.
Requirements differ from council to council, but if you've been in fuel debt for more than 13 weeks, started repaying your fuel debt through third party deductions, or disconnected yourself from a pre-payment meter, you may well be able to get help.
Households with a supplier that's either provided them with credit in the past 13 weeks or entered into an energy debt repayment plan with them may also be eligible.
To see if you could qualify for LA Flex, just contact your local authority. The government has directed half of ECO4's funding to LA Flex, so it's definitely worth checking.
What solar funding does ECO4 provide?
ECO4 provides fully funded solar panel systems to qualifying households.
Together with other energy efficient measures, the scheme's improvements can make a big difference to your energy bills.
How to apply for ECO4
To apply for the ECO4 scheme, you’ll first need to find out whether you’re eligible, which you can do by completing this Ofgem questionnaire.
If you think you may be eligible, get in touch with one (or a few) of the energy suppliers in the ECO4 scheme. You don't have to go with your current energy supplier; you can choose any of the companies involved.
The supplier will then assess your application. When it comes to solar panels, they'll focus on whether you primarily use electric heating, receive a qualifying benefit, and earn less than a certain amount per year.
If you pass, a professional will assess your home and recommend measures that could improve its energy efficiency.
Your chosen supplier will fully fund the improvements, so you don't need to think about the financial aspect unless you're getting an additional measure.
How many people get solar through ECO4?
47,513 homes received solar panels through ECO4 within the first three years of the scheme.
This is a substantial number, but it's still just 10.2% of all UK households that went solar in this time.
It's also a mere 6.2% of the improvements made to homes under the scheme, showing that energy suppliers are somewhat reluctant to pay for solar panel installations.
In contrast, heating controls – which are much easier and cheaper to install – make up 52% of ECO4 measures.
Most popular ECO4 measures, July 2022-July 2025
3. The Warm Homes Nest scheme
Requirements | Stringent |
Who applies? | Homeowners |
How to apply | Call 0808 808 2244 |
Area covered | Wales |
Solar costs covered | Up to 100% |
When it started | April 2024 |
When it ends | April 2031 |
From April 2024 until at least April 2031, this Welsh government initiative will focus on improving household insulation levels and installing modern innovations like heat pumps, rather than old solutions like gas boilers.
It's also focusing more on solar installations, which made up 18.3% of measures in 2022/23 – though the great majority of these systems didn't come with a battery.
Between its launch in 2011 and 2024, the scheme spent £440 million to help more than 77,000 homes.
Are you eligible for the Nest scheme?
You may be eligible for the Warm Homes Nest scheme, as long as you:
- Own or privately rent your home
- Have an EPC rating of 54 (E) or lower; or 68 (D) or lower if a member of your household has a chronic circulatory, respiratory, or mental health condition
- Live in a low-income household or receive a qualifying means-tested benefit (see the list below)
What solar funding does the Nest scheme provide?
The Warm Homes Nest scheme can completely fund your solar installation if you're eligible.
You can also get measures including heat pumps and insulation through the scheme.
How to apply for the Nest scheme
To apply for this scheme, just call 0808 808 2244.
A staff member will ask you some questions to work out if you qualify, guide you through uploading evidence to prove your eligibility, and talk you through the measures you can access.
You can even apply on behalf of someone else, as long as they give their verbal consent while you're on the phone.
The whole process typically takes 30-40 minutes.
You'll then be able to arrange for British Gas to install any measures you've agreed upon.
How many people get solar through the Nest scheme?
From April 2023 to March 2024, the Warm Homes Nest scheme funded improvements to 4,816 households, 19.2% of which were solar & battery systems.
Another 3.4% were just solar panels, meaning that solar installations made up 22.6% of all measures – benefiting more than 1,000 households.
Most popular Nest measures, 2023-24
4. Green Homes Wales
Requirements | Relaxed |
Who applies? | Homeowners |
How to apply | Apply online |
Area covered | Wales |
Solar costs covered | Interest-free loans up to £25,000 |
When it started | April 2025 |
When it ends | 31 March 2027 |
Green Homes Wales (GHW) is a government scheme that offers interest-free loans for households to get energy efficiency measures.
Experts will assess participating homes, make bespoke recommendations, and work out if you could qualify for grant funding alongside your loan – all for free.
Homeowners can then get installations including solar & battery systems, heat pumps, and insulation, fitted solely by installers who comply with the latest Publicly Available Specification (PAS) 2035 retrofitting requirements.
The GHW, which is run by the Welsh Government-owned Development Bank of Wales, launched in April 2025 with a £4.2 million budget for the financial year.
The government then raised its funding to £5 million for the 2026/27 period.
This still isn't much, though. A typical solar & battery system costs around £12,000 for the average home, meaning GHW could fund loans for only around 417 installations.
Are you eligible for Green Homes Wales?
There aren't many eligibility criteria for GHW.
You just need to own a home in Wales, and as long as it's your primary residence – and isn't a listed building or previously unoccupied new-build – you can qualify.
There are some credit checks and affordability assessments to pass, as with any loan, but the scheme is built to help a broader swathe of the public than most other initiatives.
Ultimately though, the scheme's funding can only go so far, meaning it'll benefit a limited number of households.
What solar funding does Green Homes Wales provide?
GHW provides interest-free loans of up to £25,000, which homeowners can use to fund energy-efficiency installations.
The loans last up to 10 years, though this repayment term can be extended for bigger projects.
Qualifying households also won't have to pay anything for the first six months. The Development Bank of Wales has said this is a "repayment holiday while your new energy efficiency measures begin delivering results."
How to apply for Green Homes Wales
You can apply for GHW online, using this form.
After supplying your name and contact details – plus your home’s age, type, and listed or conservation status – you'll be asked for your EPC rating.
You should be able to find the rating here, but even if it's not listed there, you can still apply.
How many people get solar through Green Homes Wales?
There haven't yet been any reports on the number of people to go solar through GHW, but it's clearly exceeded expectations.
When it launched as a pilot scheme in 2024, a total of 3,600 households registered an interest, and 394 filled in applications when the time came.
This trend has continued, with the programme becoming oversubscribed well before the end of the 2025/26 financial year.
From February to April 2026, GHW's website told visitors that “new applications to Green Homes Wales are currently closed following high levels of demand.”
5. Home Energy Scotland Grant and Loan
Requirements | Relaxed |
Who applies? | Homeowners |
How to apply | Contact Home Energy Scotland |
Area covered | Scotland |
Solar costs covered | £7,500 grants and loans of up to £8,000 |
When it started | May 2017 |
When it ends | No planned end |
Homeowners in Scotland can access grant and loan funding for a wide variety of home improvements – but the only solar technologies on offer are hybrid panels and solar thermal.
Hybrid panels combine solar cells that produce electricity with thermal hardware which generates hot water.
The only solar funding available is an interest-free loan of up to £5,000, which is low compared to the £8,000 loans you can get for some measures – not to mention the £7,500 grants for other improvements.
The initiative was launched in 2017, though up until 2022 it was called the Loan and Cashback scheme.
As well as hybrid panels and solar thermal, you can get measures like heat pumps, biomass boilers, insulation, and double glazing through the scheme.
The government stopped providing grants and loans for solar panels and batteries in June 2024, and doesn't look likely to reverse that decision.
Are you eligible?
If you own a property in Scotland, and it's your primary private residence, you're eligible.
You don't have to fulfil any other criteria, such as being a benefits recipient, low-income household, or vulnerable person.
What solar funding does it provide?
The initiative provides a £5,000 loan for either a solar thermal system or hybrid solar panels.
The Scottish government is more focused on encouraging homeowners to get heat pumps, biomass boilers, and insulation – all of which you can fund with loans and grants.
You can't get any funding for standard solar panels through the scheme.
How to apply
Start by calling Home Energy Scotland for free on 0808 808 2282. If you apply online, it can take up to 10 working days to get a response.
You'll have to answer some questions about your property, its residents, and your personal circumstances so the advisor can determine if you're eligible.
You should find out whether you've qualified within two working days, via email. You'll get a funding application, which you'll need an Energy Performance Certificate (EPC) and itemised quote from a solar installer to fill in.
Home Energy Scotland should process this form within 10 working days, and if you secure a loan or grant, you'll have 14 days to sign and send back your funding offer.
Then within the next nine months, you'll need to get your installation carried out and send in your final funding claim.
How many people get solar through Home Energy Scotland?
From 2017 to 2024, Home Energy Scotland (HES) paid for 6,268 loans and grants through the Loan and Cashback initiative and its current form, the Grant and Loan scheme.
The latest government data, which Sunsave attained with a Freedom of Information request, shows homeowners secured 2,442 loans and grants to go solar in the last year they could, from June 2023 to June 2024.
This cost the Scottish government £16.7 million – more than half the £31.8 million paid out to fund solar panel installations across the entire scheme, as households rushed to take advantage of the initiative while they could.
6. The Warm Homes: Local Grant
Requirements | Stringent |
Who applies? | Local authorities |
How to apply | No application – it's up to your local authority |
Area covered | England |
Solar costs covered | Up to £15,000 |
When it started | April 2025 |
When it ends | March 2028 |
The Warm Homes: Local Grant (WH:LG) started in April 2025, and is set to run until 2028.
It replaced both the Home Upgrade Grant, which lasted from January 2022 to March 2025, and the Local Authority Delivery scheme, which ended in September 2023.
This £500 million scheme – not to be confused with the similarly named Warm Homes Plan – provides funding to English local authorities to improve the energy efficiency and heating systems of eligible homes in their area.
It's mainly targeted at energy-inefficient households that are deprived, low-income, or receive a means-tested benefit.
If you live in one of the 278 local authorities that have secured funding, you may be able to access up to £30,000 in grant money, including £15,000 for energy performance upgrades.
This can involve a wide variety of measures, from solar panels and battery storage to insulation, draught-proofing, doors, and double glazing.
The other £15,000 can be used for low-carbon heating systems, such as heat pumps, electric storage heaters, and biomass boilers.
Are you eligible for WH:LG?
To be eligible for the WH:LG, you must:
- own or privately rent the property in England you want to improve
- have an EPC rating of D, E, F, or G
- be in one of these local authorities
- live in a home that's been previously occupied (not a new-build or self-build)
You must also qualify through one of the following three pathways:
- You live in one of these 259,162 eligible postcodes in deprived areas
- You have an annual household income below £36,000 or the 'after housing costs' threshold. This threshold is your net income after tax and rent or mortgage payments, and is higher if you have dependents. For example, two adults with one dependent have a £24,000 limit, with £4,000 more for each additional dependent, up to £40,000
- You or someone who you live with receives one of the benefits in this list:
What solar funding does the WH:LG provide?
The WH:LG provides £15,000 for energy performance upgrades – a category that includes solar panels and batteries.
However, to secure solar funding, your local authority will have to decide that going solar is the most necessary improvement for your home, ahead of insulation, doors, draught-proofing, and double glazing.
How to apply for the WH:LG
Unfortunately, you aren’t able to apply directly for the WH:LG.
The government's guidance document specifically states that "self-declarations are not an acceptable method of verification under the Warm Homes: Local Grant."
If your local authority has secured WH:LG funding and decides that your household may meet the grant's eligibility criteria, a representative will contact you.
They will then try to work out if your household genuinely needs help. Part of this assessment will involve ascertaining whether you're in (or about to be in) fuel poverty.
If your local authority decides you don't have a low enough income or aren't at risk of fuel poverty – for example, because of your savings or your home's property value – it can decide not to include you in the WH:LG.
How many people get solar through the WH:LG?
Between April 2025 and February 2026, 398 households got solar panels through the WH:LG.
That was 40% of all measures the scheme funded in that time frame, which made it the most popular improvement.
9,214 homes went solar through the WH:LG's predecessor, the Home Upgrade Grant (HUG)..
It was comfortably the most common HUG installation too, at 33% of all measures.
Most popular WH:LG measures, April 2025-February 2026
7. The Warm Homes: Social Housing Fund
Requirements | Stringent |
Who applies? | Landlords |
How to apply | Landlords can apply to the government |
Area covered | England |
Solar costs covered | Up to £7,500 |
When it started | October 2020 |
When it ends | March 2030 |
The Warm Homes: Social Housing Fund (WH:SHF) provides funding to local authorities and landlords to upgrade the energy efficiency of social homes in England.
It's the government's new name for the Social Housing Decarbonisation Fund, a scheme which has handed out more than £1 billion since it launched in October 2020.
Just make sure you don't confuse it with the Warm Homes Plan or Warm Homes: Local Grant.
Recipients must spend their grants on improving the country's 1.2 million social homes that have an EPC rating below C, to ensure they reach that grade.
The third wave of funding and measures will end in March 2030, but it could be followed by another.
The government has indicated that landlords in this wave should focus on improvements that will lower their homes' energy bills, such as solar & battery systems, insulation, and heat pumps.
Are you eligible for the WH:SHF?
All local authorities, social housing providers, and charities that own social housing were eligible to apply for wave three of WH:SHF, as long as they didn't benefit from wave two.
They could choose to apply by themselves, or as part of a consortium.
Individual households cannot receive funding through WH:SHF, but if you live in a social home, you can certainly encourage your landlord to apply.
What solar funding can the WH:SHF provide?
The WH:SHF gives successful applicants up to £7,500 for each social home they run.
This means you could theoretically benefit from £7,500 worth of solar gear being installed at your home, or an even more expensive system being installed on your apartment block's roof.
How to apply for the WH:SHF
Unfortunately, households can't apply for the WH:SHF.
In fact, no-one can at the moment, as the Department for Energy Security and Net Zero's application window for the current wave closed in November 2024.
To qualify for wave three, landlords and local authorities had to include at least 100 social homes with an EPC rating below C on their application, unless they managed fewer than 1,000 properties.
In this case, they could reach 100 homes by bringing other landlords into a consortium – but if this wasn't possible, they could still submit an application.
Applicants had to also show they intended to hire installers that had been approved by Trustmark, the only government-endorsed quality scheme in the UK for works in and around your home.
How many people get solar through the WH:SHF?
Solar panels made up 10% of measures implemented during wave one, and this figure rose to 17% during wave 2.1.
Overall, 12,215 solar arrays were installed through the WH:SHF during its first three years in operation.
3,140 solar panel systems were installed during wave one of the WH:SHF, which ran from March 2022 to March 2023.
A further 8,224 arrays were put on social homes during wave 2.1, which operated between April 2023 and March 2024.
Wave 2.2, which lasted from April 2024 to March 2025, saw another 851 solar panel systems installed, which represented 22% of all measures.
Wave three, which is set to run from April 2025 to March 2028, has so far funded 399 solar panel system installations – 45% of all measures.
Most popular WH:SHF measures, March 2022-February 2026
8. Solar VAT discount
Requirements | Relaxed |
Who applies? | No-one, it's automatic |
How to apply | You don't have to apply |
Area covered | UK-wide |
Solar costs covered | N/A |
When it started | April 2022 |
When it ends | March 2027 |
The solar VAT discount was part of the government's move in 2022 to change the VAT rate for a host of energy-saving materials to 0% in England, Scotland, and Wales.
The full list of qualifying products includes insulation, wind turbines, heating controls, heat pumps, and solar panels.
By reducing the upfront costs of installing energy-efficient devices, the policy aims to encourage households to switch to green energy.
It's not a grant, so you can't apply for it. Instead, it automatically cuts your solar costs.
And in February 2024, this 0% rate was expanded to include standalone storage batteries.
The treasury has estimated that reducing the VAT rate on all these products to 0% will cost the government £280 million.
Are you eligible for the solar VAT discount?
Everyone is eligible for the solar VAT discount – all you need to do is buy a qualifying product.
It applies automatically if you buy any of the following:
- Solar panel system
- Home battery
- Air, ground, or water source heat pump
- Micro-CHP system
- Heating controls
- Insulation
- Smart diverters
- Wind turbine
- Water turbine
- Wood boiler
How much money can the solar VAT discount save you?
This discount can boost your savings. Energy-efficient materials used to be taxed at 20%, but if you were on benefits or the materials cost less than 60% of the installation, the rate was reduced to 5%.
With the introduction of the 0% VAT rate, the average three-bedroom household can save around £601 when buying a new 4.9kWp solar & battery system, or £2,406 for those who would've previously paid 20% VAT.
The discount of course varies depending on the price of your system.
How to access the solar VAT discount
There is no specific application process for the solar VAT discount, as it’s automatically applied at the time of purchase.
How many people have benefited from the VAT discount?
623,106 households in England, Scotland, and Wales benefited from the VAT discount between April 2022 and February 2026.
At the current rate, we expect around 200,000 more homes to benefit from the discount by March 2027, when it's set to end.
Even if we conservatively assume that all of these installations would've previously come with a 5% VAT rate, this still represents a rough overall saving of £463 million.
If you want to take advantage of the 0% VAT rate on solar before it expires, enter a few details below and we'll provide a quote and savings estimate.
Find out how much you can save
What kind of home do you live in?
9. Green home rewards
Requirements | Variable |
Who applies? | Homeowners |
How to apply | Contact your mortgage provider |
Area covered | UK-wide |
Solar costs covered | Up to £1,000 in cashback |
When it started | N/A |
When it ends | N/A |
Green home rewards are cashback schemes offered by banks including Barclays, Halifax, and Lloyds to their own mortgage customers.
To qualify, homeowners with these banks have to sign up for the relevant scheme and make a qualifying energy-efficient improvement – like a solar & battery system.
Nationwide also has a green home reward scheme, but it's slightly different: customers can qualify for cashback not through eco-friendly measures, but simply by getting a mortgage on a property with an EPC rating of A or B.
All these schemes fall under the category of green mortgages, which are mortgages that include an incentive to either purchase an energy-efficient property or make eco-friendly improvements after you've moved in, according to the Financial Conduct Authority.
For more information, check out our guide to green mortgages and green home rewards.
Are you eligible for green home rewards?
Anyone who mortgages or remortgages their property with Barclays, Halifax, or Lloyds – and anyone who gets a mortgage with Nationwide – is eligible for a green home reward.
If you buy a home with a Nationwide mortgage that has an EPC rating of A or B, you should automatically receive your reward.
Nationwide will check your new home's EPC rating two weeks after it confirms your mortgage is in place, so there's no time to make improvements. To qualify, you just have to find a property that's already energy-efficient.
What solar funding can green home rewards provide?
Halifax and Lloyds will give you £1,000 if you install solar panels, with or without a battery, while Barclays is offering £500.
Nationwide's Green Reward scheme gives new mortgage holders £500 if the property has an A-rated EPC, or £250 if it has a B-rated EPC.
Halifax, meanwhile, will give new mortgage customers £250 if their home's EPC rating is A or B.
How to access green home rewards
You can only access Halifax and Lloyds' green home rewards if you apply directly for one of their mortgages – in a branch, over the phone, or online – instead of going through a broker.
Every year, Halifax and Lloyds create an 11-month qualifying time period, so make sure to send in your mortgage application during this time, then register for a green home reward within the next month.
If you have a Barclays mortgage, there are no time limits on when you can apply for the bank's Greener Home Reward programme – but once you carry out your home improvements, the timer will start.
You have to submit your claim form within three months of the invoice or payment date, and if it's accepted, you’ll have one month to send proof that the works happened and you paid for them.
You shouldn't even need to apply for a Nationwide Green Reward cashback, but it's worth bringing up the initiative to a representative during the mortgage application process, just in case.
The surge of green home rewards in the UK
Green home rewards have exploded in popularity in recent years, alongside green mortgages.
From four green mortgage products in 2019, this market has grown to more than 60 products, according to the Green Finance Institute.
And 57% of major mortgage lenders now offer a green mortgage of some kind, according to the Mortgage Advice Bureau.
However, as long as these products continue to offer limited financial benefits, lenders will face accusations that they're meeting their own environmental targets without having any significant impact on homeowners or the climate.
10. Solar Together
Requirements | Relaxed |
Who applies? | Homeowners |
How to apply | Via Solar Together's website |
Area covered | England & Wales |
Solar costs covered | 30-35% average saving on the initial cost |
When it started | 2015 |
When it ends | N/A |
Solar Together is a group-buying scheme run by Dutch company iChoosr, which helps households in England and Wales to get solar panels for less.
It's not a grant, it isn't provided by the government, and it isn't run by local authorities, even if they sometimes partner with iChoosr.
The initiative, which has been renamed Switch Together as it now includes heat pumps, gets hundreds or thousands of residents in an area to sign up for solar installations.
The company then auctions all these jobs to one installer, who charges a lower, bulk price.
The scheme has a history of securing discounts, but it has its disadvantages too, which we'll explain below.
Are you eligible for Solar Together?
The scheme is open to homeowners, small or medium-sized businesses, and tenants (with their landlord’s permission).
However, it’s not available in every area. It only operates in England and Wales, and as of December 2025, in just 217 out of 339 local authorities – less than two-thirds.
Even the ones it ‘operates’ in often don’t have active schemes running, which adds to the waiting period if you’re simply not in a qualifying area for a while.
How much money can Solar Together save you?
Solar Together has secured 20-30% reductions in cost, according to the Greater London Authority.
However, the way the scheme operates can result in you saving less in the long run.
The requirements that iChoosr sets for its installers’ products are low, with a minimum solar panel efficiency of 18.1%, and a minimum product warranty of 12 years.
This is far below market standards, to the extent that you could end up spending more because of maintenance issues, and saving less due to inferior solar output levels.
The official report on Solar Together London said that “some elements of the PV solar equipment specified by iChoosr are lower than would typically be expected of a domestic rooftop solar PV specification, which will have likely contributed to some of the cost reduction.
“In particular, the installation of lower quality inverters will have reduced cost. The consequence of this decision by iChoosr may be increased warranty claims and complaints in the future.”
How to apply for Solar Together
The first step is to check on the Solar Together website if a scheme is running in your area. You can either register online or add your details to a waiting list to be notified when it becomes available in your region.
During the application process, you’ll need to provide details about your house, roof space, and typical electricity usage.
These will be used to send you a personal recommendation for the solar installation after the auction.
Defunct grants & schemes
The UK government has steadily reduced solar funding over the past few years, as is the case in other parts of Europe.
After well over a decade of the government providing financial incentives for homes to go solar, the flood of grant money has slowed to a trickle.
The Feed-in Tariff is perhaps the most famous to fall by the wayside – though it technically continues to exist for some households that signed up before the final deadline.
Here are all the most important solar grants and schemes that have run their course.
Grant/scheme | What it covered | When it expired |
|---|---|---|
Home Upgrade Grant | Provided £700 million for English local authorities to fund energy-efficient upgrades in homes not on the gas grid | March 2025 |
The Home Energy Scotland Grant & Loan | Grants and interest-free loans for energy-efficient improvements, including solar & battery systems | June 2024 for solar PV installations |
The Renewable Heat Incentive | Paid owners of biomass boilers, heat pumps, and solar thermal systems based on the amount of heat they were estimated to produce | Stopped accepting new applications in March 2022 |
The Feed-in Tariff | Paid domestic renewable generators for all the electricity they produced and exported | Stopped accepting new applications in March 2019 |
The Green Deal | Offered loans, then grants, to encourage uptake of measures that saved and produced energy | July 2015 |
Next steps
There are a few grants and initiatives that can help make the cost of solar panels more affordable for UK households.
You could save thousands of pounds with the Warm Homes Loan Scheme, which allows you to get low-interest loans for solar panels and batteries, among other home energy tech.
However, grants that cover the full cost of solar panels – like the WH:LG, Warm Homes Nest scheme, and ECO4 – still have limited eligibility criteria that exclude most homes.
Sunsave is one of the Warm Homes Loan Scheme’s approved lenders, and we offer solar panels, batteries and EV chargers. With Sunsave, you can choose between a variety of loan terms that last anywhere from three to 20 years.
If you'd like to see the savings you could get from a solar & battery system, just answer a few questions below, and we’ll provide an estimate.
Find out how much you can save
What kind of home do you live in?
Solar panel grants: FAQs
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Written byJosh Jackman
Josh has written about the rapid rise of home solar for the past seven years. His data-driven work has been featured in United Nations and World Health Organisation documents, as well as publications including The Eco Experts, Financial Times, The Independent, The Telegraph, The Times, and The Sun. Josh has also been interviewed as a renewables expert on BBC One’s Rip-Off Britain, ITV1’s Tonight show, and BBC Radio 4 and 5.











