February 2025
Thinking about going solar? Having solar PV panels installed is a smart move for both your wallet and the planet, but the upfront costs can be a bit daunting. Fortunately, the UK offers several incentives to make installing solar panels more affordable.
In the UK, there are several solar energy incentives to help offset the cost of installation. This includes grants like ECO4 for eligible households and 0% VAT on solar panels. Qualifying homeowners can also sell unused electricity to the grid via the SEG Smart Export Guarantee (SEG).
In this article, we’ll take a closer look at what solar power incentives are available, who qualifies and what the benefits are.
For expert advice on installing a solar panel system in your home, contact Cinergi today.
Can you get free solar panels?
There are no dedicated solar panel grants as such, and fully free solar installations are rare. However, in a bid to reduce carbon emissions, the government has several schemes to help homeowners make energy-efficient upgrades.
The Energy Company Obligation (ECO4) and Warm Homes: Local Grant target low-income and vulnerable households. They offer funding for renewable energy solutions, such as solar panels and air-source heat pumps. The eligibility criteria are strict, focusing on those most in need.
Some local councils also run initiatives that provide free or subsidised solar panel installations to qualifying residents.
Are there any solar panel grants in the UK?
Here is Cinergi’s overview of the current solar panel incentives available in England. For schemes available in Scotland, see Home Energy Scotland, and for Wales, visit gov.wales.
| Grant/scheme | What is it? | Who qualifies | Benefits | Runs until |
|---|---|---|---|---|
| Energy Company Obligation (ECO4) | This government scheme provides funding for energy efficiency improvements, including solar panels and heat pumps. | Low-income (less than £31k) and vulnerable households receiving certain benefits; properties with EPC ratings of E, F, or G. | Up to 100% funding for energy-saving measures, reducing energy bills and improving home efficiency. | March 2026 |
| Home Upgrade Grant (HUG2) | Funding for energy efficiency upgrades in off-gas-grid homes. | Low-income households not connected to the gas grid; properties with EPC ratings of D-G. | Grants averaging £2,500 to £10,000 for measures like solar PV panels. | March 2025 (applications now closed) |
| Warm Homes: Local Grant | A government-funded scheme delivered by local authorities to help improve energy efficiency. | Low-income households in England with an Energy Performance Certificate (EPC) rating between D and G; privately owned properties; gross annual household income of £36,000 or less, or receiving means-tested benefits. | Up to £15,000 per property for energy performance upgrades like insulation and solar PV; an additional £15,000 for low-carbon heating systems such as heat pumps. | Expected to run from April 2025 for 3-5 years |
| Smart Export Guarantee (SEG) | This pays homeowners for any unused electricity exported to the grid. | Homeowners with solar panels generating excess electricity; systems must be installed by certified installers. | Provides a financial return on unused energy, offsetting the cost of installation over time. | Ongoing |
| Solar Together Scheme* | A group-buying scheme offering discounted solar panel installations. | Open to all residents in participating local authority areas. Check with your local council. | Potential savings of 30-35% on solar panel systems through bulk purchasing. | Varies by locality |
| 0% VAT on Solar Panels | Government incentive that removes VAT from the cost of solar panel installation. | All UK homeowners installing new solar panels. | Lower installation costs, making solar panels more affordable. | Extended to 31 March 2027 |
How do you apply for solar grants and incentives?
Applying for these grants and incentives involves a few steps:
- Find out if you are eligible: To determine if you qualify for the Solar Together* or Warm Homes scheme, check with your local authority.
Check to see if you qualify for ECO4 grant here. - Find a certified installer: Ensure that certified professionals carry out any installations, as this is often a requirement for grant approval.
- Apply for SEG: Once your solar panels are installed, contact energy suppliers to find the best SEG rates and complete their application process. Check Smart Export Guarantee (SEG) eligibility here.
*Please note that Cinergi are not part of the Solar Together Scheme, but we would be delighted to talk to you about other solar incentives.
How you can maximise solar grants and incentives
To make the most of the available solar incentives:
- Stay informed: Government policies and available grants change. Check official government and energy advisor websites, like ofgem and The Energy Saving Trust. Cinergi is also dedicated to keeping our clients up to date, so keep tabs on our blog.
- Invest in other energy-saving materials and systems: Pairing solar panels with other renewable energy solutions like solar batteries and heat pumps will help maximise cost savings in the long term and offset the cost of installation. Improving your home’s insulation and central heating system will also help maximise your home’s efficiency.
- Combine incentives: Where possible, stack multiple incentives to reduce costs further. For instance, benefit from the 0% VAT rate while also participating in the SEG.
- Use a professional and experienced installer: Make sure you choose a certified solar panel installer like Cinergi, who can guide you through the process and help you establish what grants you qualify for.
Are solar panels worth investing in without government incentives?
Even if you don’t qualify for a grant, solar panels are still worth it. While installation is an investment, it can lead to substantial savings on your electricity bills and can increase your property value.
Speak to our solar experts today
If you are sold on the idea of switching to solar energy, talk to Cinergi today. Our team is here to guide you through the process and can help determine if you qualify for any grants or incentives.
We offer a range of other renewable energy technologies, such as air source heat pumps and battery storage, to help you get the most out of your investment and optimise your home’s energy efficiency.
Contact us today to book a call-back and get started.
Frequently asked questions – what solar panel incentives are available in the UK?
If you qualify for a grant towards solar panel installation, it can’t be applied retrospectively. The agreement must be in place before the work to your property goes ahead and carried out by a registered installer. However, you can take advantage of the SEG (Smart Export Guarantee) after installation, provided you meet the eligibility criteria.
A well-designed and installed solar panel system can save you a significant amount on electricity bills by generating your own power. Over time, the savings can offset the initial installation costs. To get an idea of how much you can save, visit the Energy Savings Trust website.
When you have solar panels, you can potentially sell any electricity you don’t use back to the grid, via the Smart Export Guarantee scheme. The amount you can earn depends on your energy supplier’s rates and the amount of excess energy you generate.
Cinergi provides tailored solar PV installations to each and every property, and we will provide a unique quote based on your requirements. Typically, solar systems cost upwards of £5k/£6k for a domestic property.
