The Warm Homes Plan and other government solar panel grants – 2026

• The ECO4 scheme is being scrapped from March 2026
• The government has committed extra funding to the Warm Homes Plan
• The Smart Export Guarantee (SEG) helps homeowners with solar panels earn money from selling energy back to the grid
• Homeowners pay 0% VAT on residential solar panel installations
• Finance options and payment plans help spread the upfront costs of solar

You will soon be able to get a 0% interest or low-interest loan for solar panels as part of the £15bn Warm Homes Plan, the biggest government energy upgrade initiative ever.

Initiatives such as the Warm Homes Plan, Solar Together, and the Warm Homes: Local Grant can help make solar panels affordable. The Smart Export Guarantee (SEG) lets you sell unused energy back to the grid, meaning solar panels can become a great long term investment. The ECO4 scheme is still available, but it is being crapped on 31 March 2026.

In this guide we’ll cover the major solar panel grants, incentives, and finance schemes available to you, as well as how to apply.

If you’re already at the point where you’re asking ‘how much are solar panels?’, the answer depends on your house and what size system you want, but expect to pay between £4,216 and £9,837.

Solar panel grants and solar panel funding schemes at a glance

There are several options available to help reduce the upfront costs of solar panels. Use the table below for more information:

Each grant has different eligibility criteria, as well as the benefits they provide. Applying for them isn’t always straightforward. You can learn more about applying for each grant and scheme later in this article.

Is it worth getting solar panels?

Yes, it is absolutely worth getting solar panels for these reasons:

• They can help reduce your monthly energy bill by 70%. On average, a 3.5 kW solar panel system will save you between £450-£600 a year.
• You can cash in on the solar power you don’t use through the Smart Export Guarantee.
• Solar panels can cut your dependence on the grid and make you energy independent. This might take 10-15 years, as that’s the payback period for solar panels, but it is worth it.
• Solar panels increase the value of your home, sometimes by as much as 14%.
• Solar panels are low maintenance and easy to clean. Most solar panels come with a 25-year warranty and will be fully operational for 40 years or so.
• You can lease solar panels if you can’t buy them upfront – typically if you can’t afford the cost and don’t qualify for a grant.

Am I eligible for free solar panel grants?

To qualify for most UK solar grants, you typically need an EPC rating of D or below, a household income under £31,000, or receipt of specific benefits.

Normally, the organisation overseeing the grant will specify the requirements and publish them on the relevant scheme’s website.

As well as the UK, governments around the world have introduced grants to make it easier to install solar panels.

Use the table below to find potential savings, the average cost of a solar panel, and your typical percentage savings on your electricity bills.

*Quoted prices and grant information correct as of June 2025

The Warm Homes Plan

The Warm Homes Plan is the biggest home energy improvement scheme the UK government has ever launched. Worth about £15bn, it aims to cut the cost of heating by helping people buy clean energy tech, such as solar panels and solar batteries.

As part of the Warm Homes Plan families could receive fully-funded installations of solar panels and a battery to the full average cost, somewhere between £9,000 to £12,000.

On top of that, everyone will be able to get government-backed zero or low-interest loans to install solar panels, regardless of income. Through these offers, the government is hoping to triple the number homes with solar panels on the rooftops by 2030.

Who is eligible for the Warm Homes Plan?

Everyone because anyone can apply for the zero or low-interest loans regardless of income. The process for these loans will likely be similar to that of the Boiler Upgrade Scheme for heat pumps.

How to apply for zero or low-interest solar panel loans

The government hasn’t yet said how exactly the application process for zero or low-interest solar loans will work, only that funding will be available to lenders who apply to participate in it.

Ministers say they are working with the finance industry to make sure consumers have as many options as possible when applying for a zero or low-interest loan. They say consumers will have a choice of either increasing their mortgage or taking out a separate loan altogether. The scheme will be combined with roughly £300mn of additional government funding to make the loans as cheap as possible.

There isn’t word yet on the exact interest rates of these loans will be, or what percentage will be 0%, but the government has insisted that its goal is to make “a range of low-cost finance solutions available for homeowners”.

The plan is to roll out the scheme in phases, and the government says it will work with devolved administrations and mayoral authorities, saying this will allow it to test approaches and expand the scheme in response to demand. More details on eligibility will be available later in 2026.

The loans could be used for other clean energy technology as well, including solar batteries, and it can be used alongside the Boiler Upgrade Scheme to apply for a heat pump. All households, no matter their income, are free to use both a zero or low-interest solar panel loan and the Boiler Upgrade Scheme.

What is the Warm Homes Local Grant?

Replacing the Home Upgrade Grant, the Warm Homes Local Grant aims to improve access to low-carbon heating technology for homes with a poor Energy Performance Certificate.

The Warm Homes Local Grant offers up to £30,000 for a household in England. This money is split into two pots: one £15,000 for energy upgrades, such as insulation or double glazing, and the other for heating, which involves a heat pump.

As well as solar panels, the grant also offers insulation and heat pumps via partnerships with local authorities.

Announcing the grant’s launch in October 2024, energy secretary Ed Miliband said government intervention was necessary to  “transform living standards and deliver the safety and security of warmer, cheaper homes that are free from damp and mould.” 

The Warm Homes Local Grant: Eligibility requirements

To qualify for the Warm Homes Local Grant, you must:

• Live in England
• Earn £36,000 or less a year 
• Have an Energy Performance Certificate (EPC) between D and G
• Live in a property that is privately owned (owner occupied or privately rented)

Do solar grants cover battery storage?

Yes, there are government grants for solar battery storage, and they are often tied to broader energy upgrades. The Warm Homes Plan, the new initiative launched by the government this year, includes low-interest loans to help people buy and install solar batteries.

Other existing schemes include 0% VAT on battery storage, the Smart Export Guarantee (not a grant, but a way to sell excess energy back to the grid), and the Home Energy Scotland Loan/Grant, which offers up to £6,000 for energy-saving technology, including solar batteries.

What is the Smart Export Guarantee (SEG)?

The Smart Export Guarantee (SEG) is pays you on average £80 to £170 for your excess energy you export back to the grid. The top tier tariffs can pay as much as 25p-30p per kWh. It’s a government-backed scheme launched in 2020, and it includes solar and wind energy.

The SEG is not technically a grant, but it’s worth including it in this guide, as the guarantee can help increase the savings you make from solar panels. It also reduces the time it takes to break even, so rather than taking 14 years, it could be significantly less. 

Energy suppliers who are registered as an SEG Licensee determine the rate, contract length and other terms, which SEG homeowners receive. The tariff rates must always be above zero and payments are calculated by using export meter readings. 

For example, Octopus Energy offers homeowners a flat rate of 4.1p per kilowatt hour (kWh) for every unit of power exported. However, its Intelligent Octopus Flux scheme can see rates of up to 29.3 per kWh and its Outgoing rate offers 15p per kWh.

Meanwhile, British Gas offers a rate of 6.4p per kWh, which is available to anyone who’s eligible. For existing customers of British Gas, homeowners can earn 15p per kWh. 

As you can see, the rates vary from supplier to supplier so it’s worth doing some research and shopping around. Each energy supplier also has their own application process. 

The savings – as you can see from the table below – will also vary depending on a variety of factors. This includes how often you’re home, whether you’re in all day or after 6pm. The table below gives a rough idea on the savings you could make with the SEG in London (other locations may vary).

SEG eligibility requirements for solar panels

The scheme is open to anyone with an installation of one of the following technology types up to a capacity of 5MW, or up to 50kW for micro-CHP.

These types are: 

• Solar photovoltaic (solar PV)
• Wind
• Micro combined heat and power (micro-CHP)
• Hydro
• Anaerobic digestion (AD)

These installations must be located in Great Britain and you must have a Microgeneration Certification Scheme (MCS) certificate, or equivalent document. This will be provided by your installer once you are up and running. 

You must also have an export meter, which is a meter that’s capable of measuring your exported electricity. 

Good news if you have a smart meter, as that automatically qualifies. If you’re unsure whether you have an export meter or want to install a smart meter, check with your SEG supplier. Once a smart meter has been installed, you can start to make savings under the SEG.t meter has been installed, you can start to make savings under the SEG.

Potential savings with the SEG

Prices and savings figures shown are estimates. For the best prices, we recommend contacting professional installers.

A typical household exporting 50% of a 3,000kWh annual generation could earn approximately £80 per year via SEG, or up to £160 if exporting 100% of the energy they create.

Realistically, however, the average household will actually use about half of the electricity being generated, so savings will be approximately £80 per year. 

But over the course of a solar panels’ lifespan, this adds up to between £2,000-£5,000 – just from the SEG. 

If you want to utilise the higher savings, you’ll need to use all the electricity that your panels generate. To achieve this, instead of exporting the electricity, you should consider getting a solar battery. Installing one enables you to store excess electricity your panels produce during the day and use it at night.

Getting a solar battery will increase the time it takes to pay back your solar system however.

How to apply for the SEG

To apply for the SEG, contact your chosen energy supplier, as each one has their own application process. 

If you want to join Octopus Energy, for example, you can sign up online and the process takes two days to finalise. This is because Octopus Energy applies to the DNO for an export MPAN, which is a unique number for the electricity meter in your property. 

The creation of the MPAN takes approximately one to four weeks, which is the longest part of the application process. After this, your export MPAN number is enrolled onto your account and you will receive an email for your first meter reading. 

You’ll need to submit a photo to confirm it’s the correct reading. Your account is then checked to ensure that any crediting has been successful. 

It’s worth adding that you don’t have to get your SEG tariff from the same company that you buy your electricity from, but some suppliers offer higher SEG rates to their own customers. If that’s the case, you can switch energy suppliers to get the best SEG rate.

What is Solar Together?

Solar Together is a group-buying initiative that allows communities to buy solar panels for their homes at a competitive price. You can also choose to fit a domestic

battery system to store surplus electricity generated by the solar panels and use it when it’s needed. 

The initiative is owned by iChoosr, which has been running collective schemes for energy-switching and solar panels for more than a decade. 

Once enough people in a participating council have signed up, solar installers are allowed to enter an auction for the right to do the job, with the lowest bid winning. 

You will fully own your new solar panel system and it would have cost less than it would if you purchased solar panels on your own. 

Like most of the grants and initiatives available, there’s a set list of installers working with the Solar Together initiative. These include:

• Project Solar 
• CRC Electrical and Renewables Ltd
• Everyone’s Energy UK Limited
• The Eco Roof and Wall Company 
• 0800 Repair
• Solar Fast
• Warma UK
• Greener Energy Group

Within this, Everyone’s Energy told The Eco Experts that 80% of their customers came from Solar Together.

Solar Together eligibility requirements for solar panels

To join a Solar Together scheme, you must be in receipt of the following:

• Live in a council that’s participating in a Solar Together scheme. You can find out which local authority is part of the scheme through the Solar Together website. 
• Own your own house or workplace, have your landlord’s permission, or be part of a commonhold association. Small and medium-sized enterprises (non-domestic) are also eligible. 
• Be able to pay a £150 deposit, should you choose to go ahead with the installation

Potential savings with Solar Together

On average, participants of Solar Together can cut their costs by 30-35% compared to if they installed solar panels themselves. 

This means that for a typical three-bedroom household, there’s savings of around £2,555 to be had on the upfront cost of solar panels. The average three-bedroom household will then pay between £4,471 and £5,000 instead of £7,026 for a solar panel system, so it’s definitely worth floating the idea around with your neighbours.

How to apply for Solar Together

All you need to do is register on the Solar Together website where you will be asked questions about your house, roof and electricity usage. 

If you are registering for battery storage only, you will also be asked about your current solar PV system and electricity usage. 

If you don’t have these, that’s fine – Solar Together can help you estimate industry and local averages if you aren’t sure of the exact figures of your roof size or electricity usage. 

Once you’ve registered and you fulfil the eligibility requirements listed above, you’ll automatically be accepted onto your local scheme. There’s no obligation to go ahead with any solar panel installation. 

The next step is the auction. The winning bid (the lowest bid) sets the price for all solar systems and battery systems. All installers are vetted by Solar Together and have to meet compliance criteria before they are accepted. 

After the auction, you’ll receive a personalised recommendation, which will include information about the winning installer, a complete system, costs, and savings. This recommendation is for consideration, but the Solar Together Helpdesk is on hand to help as well. 

If you want to accept the recommendation, you’ll need to put down a £150 deposit to cover the costs of a roof survey and then pay the cost of your solar panel system. If you’re struggling to pick your installer, it’s worth checking out our guide, ‘How to choose a solar panel installer’.

What do people who have bought solar panels think?

We asked UK homeowners on r/SolarUK (a UK-based community for solar panels, batteries, and EV chargers) about their experience with solar panels and whether they took advantage of any grants.

Solar panel owner 1

Which government grants or initiatives to buy your solar panels? If you didn’t use one, please explain why not.

“No grants, but I didn’t pay any VAT.”

What was the total installation cost (after any grants used)?

“£9,500, but we did some work ourselves.”

What was your average energy bill BEFORE you installed your solar panels?

“£125 per month.”

What is your average energy bill since you installed your solar panels?

“£1, but it wasn’t only solar that got us here.”

Has your EPC rating improved since you installed your solar panels?

“Yes. From E to A (score of 101). That isn’t just due to solar as should be obvious!”

⁠Have you also installed a solar battery? If yes, how much did it cost and did you use any government grants?

“In with the cost above 19.5kWh. No grant used.”

⁠Have you been able to generate solar energy during cloudy weather? This is often one of the biggest concerns people have.

“Yes.”

Have you used the Smart Export Guarantee to sell excess energy back to the grid? If so, how much money have you made, do you think?

“I use Octopus at 15p per kWh. The summer months pay for my winter months.”

Solar panel owner 2

“No grants available other than 0% vat, and even that required me to get them “professionally installed”. When I added solar to my garage myself, I ended up paying 20% VAT.”

“£13,850 for main array (30x445W) and Tesla Powerwall 3 for £8,450. Later, for 2x Powerwall 3 DC expansion packs it was £2,500 for self install of 14x645W panels on the garage.”

Monthly bills BEFORE and AFTER solar panels?

“£300 per month before. After installation, about net-zero bills over the course of the year.”

Did your EPC rating improve?

“EPC went from D to A, although I did also do cavity wall and loft insulation. The EPC score is now 118.”

Do your panels generate electricity when it’s cloudy?

“Some cloudy generation but very little, it is a rounding error, on cloudy days I cycle the battery for profit.”

Have you had any problems with your solar panels?

“No problems.”

Have you used the Smart Export Guarantee?

“Yes I use Smart Export Guarantee. I have made enough to offset all my usage. Total export payments in year 1 (2025) were around £2,450. I should make more this year as garage only came online may last year.”

If you haven’t had solar panels installed in your home, will the UK government’s promise of 0% loans in the Warm Homes Plan make it more likely you will choose to do so?

“Yes 0% loans would appeal. I may add more solar via this route (north roof still empty!).”

Solar panel owner 3

Which government grants or initiatives to buy your solar panels?

No grants as non available at the time.

What was the total installation cost (after any grants used)?

£16,500.

What was your average energy bill BEFORE you installed your solar panels?

Average before was approximately £280. Average after is approximately £95.

Have you been able to generate solar energy during cloudy weather? 

There can be reasonable generation on cloudy days, but this completely depends on the formation/type of clouds.

Have you used the Smart Export Guarantee to sell excess energy back to the grid? If so, how much money have you made, do you think?

Yes, in 10 months I’ve made approx £850 (x40 panels).

Case Study: How Lilly saved 20% with Solar Together

We spoke to Lilly, a UK homeowner who got her solar panels via Solar Together, the group-buying scheme that can help cut the costs of a solar system, and has also been able to make money via the Smart Export Guarantee.

“I got my solar panels through Solar Together and genuinely, it was a great choice. I’d estimate I saved around 20% on the cost of my solar panels than if I’d just bought them solo, so I’m already well on my way to paying them back!

“It was all easier than I thought. The installer was pre-vetted, the price was competitive, and there was the additional assurance that the scheme was endorsed by the local council. I’d been on the fence with solar panels for ages but Solar Together was the nudge in the right direction. There’s something reassuring about a bunch of people all committing to the solar panels, maybe it’s herd mentality!

“I’m also taking advantage of the Smart Export Guarantee to make a little bit on the side. It’s not massive amounts – close to £100 a month – but it’s literally just passive savings and it’s helping me pay back my upfront costs faster.

“Solar has reduced my bills, made my house more energy self-sufficient, and given me more resilience against energy price increases. I’d recommend others do it (if they can), but just be realistic about payback rates and export income.

0% VAT for solar panels 

If you buy and install solar panels before March 31 2027, you’ll pay 0% VAT. That is a saving of about £1,200 and £1,600.

However, there are a few exceptions. 

If you buy from one supplier and use a different provider to install your solar panels, you will be charged 5% on the cost of installation. This means you have to use the same company from start to finsih.

You’ll also pay 5% VAT on the cost of any repairs or maintenance after your initial solar panel installation. 

See below to give you some idea of the savings this could make.

*Please note that the above-noted prices and savings figures shown are estimates only.

For a more in-depth analysis at what the 0% VAT cut means for energy-saving materials, check out our guide: Do you have to pay VAT on solar panels? 

What’s more, as of 1 February, homeowners will also pay 0% VAT on solar batteries. This is a strong move from the government to ensure homeowners are able to save and store as much electricity as possible. 

Prior to February, the 0% VAT only applied to storage batteries installed as part of a solar panel installation, rather than a standalone product. This is no longer the case. 

With this new VAT reduction, you’ll pay 5-20% less on solar batteries, saving you £225 to £900 on average (and shrinking the time it takes to break even on a solar-plus-storage system).

Which energy-saving materials does the 0% VAT apply to? 

The 2022 0% VAT initiative to help homeowners invest in eco-friendly improvements are:

• Solar panels
• Air source heat pumps 
• Controls for central heating and hot water systems
• Draught stripping 
• Ground source heat pumps
• Insulation
• Micro combined heat and power units
• Wood-fuelled boilers

Potential savings with 0% VAT

The 0% VAT rate on solar panels will save the average three-bedroom home between £393, and you don’t need to do anything to secure it. It will just be applied to your purchase. 

Research the right solar panels for you, though, as every home is different. Also, reach out to different suppliers about costs. If you don’t know where to start, simply fill in this form, for a free quote across multiple suppliers.

Are there any solar panel finance and loan schemes?

Yes, in the event that you aren’t eligible for any of the grants, schemes or initiatives we’ve covered, some suppliers offer finance and loan options. 

A loan or financing is not for everyone, so consider your financing beforehand or speak to a finance expert before applying. If you determine that the savings you’ll receive from installing solar panels are worth the monthly repayments, then it can be a strong way of doing so. 

The key is to look for loans or finance options that offer low interest rates, so you aren’t reducing the amount of savings you’ll make throughout a solar panel’s lifespan. 

Most banks will offer personal loans to cover home improvements, with many saying they can be used for renewable energy developments. Each bank will have their own approval and eligibility requirements, so work with them to ensure it’s the right move for you. 

The companies that currently offer solar panels on finance are: 

• E.ON
• Scottish Power
• SolarStyle
• Sunsave

The finance options each company offers require monthly instalments, with interest rates and repayment periods that vary. Prices will also vary depending on the amount of panels required, if your roof is in full sun or partial shade, and what type of solar panels you want to have. 

E.ON, for example, offers an interest-free option on a typical six-panel (2.61 kWp) solar system installed for £241.04 per month over 24 months. Scottish Power offers 0% APR over three years, while SolarStyle offers interest-free finance options over 12 months. 

Sunsave also offers a ‘solar subscription’. It’s a monthly subscription that offers 24/7 monitoring and free replacement parts for total piece of mind. 

Of course, affordability will differ per household, but financing solar panels can be a good way of getting the savings that solar panels offer, while spreading the cost.

How can I get solar panels without a grant or loan?

If you can’t afford the total upfront cost of solar panels and would rather not take out a loan, try getting quotes from multiple installers to find the cheapest solar panels.

Some councils around the UK are also offering to install solar panels onto council houses for a discounted price – but this depends on the amount of funding the borough has.

Find out more in our guide to getting solar panels for council and social housing.

What grants and funding are available in Wales, Ireland, and Scotland?

Certain grants are specific to certain regions, operating outside of England while still available in other parts of the UK. Let’s briefly cover two of these.

Scotland – Home Energy Scotland Grant and Loan

The Home Energy Scotland Grant and Loan, launched in June 2023, provides a total amount of £6,000, consisting of a £1,250 grant and an optional £4,750 loan. To be eligible for the grant, you must meet all of the following criteria:

• Those residing in a dwelling not connected to the main gas supply (such as those using oil, coal, LPG, or electric heating).
• Have an Energy Performance Certificate (EPC) between ratings D and G. Homes without an EPC rating will receive a free assessment.
• Meet the low-income threshold (below £36,000) or live in the most economically deprived areas (IMD 1-3)

Combined with the optional loan, this grant can cover the potential costs of a 3kW system, which would be ideal for a 2-bedroom house or a small 3-bedroom one.

We have an entire article dedicated to solar panels in Scotland, including grants and financing, if you want to know more.

Wales – Nest

Sadly, for those living in Wales, no dedicated solar panel grants are available at the time of writing (apart from ECO4, SEG, 0% VAT, etc). However, the Welsh government introduced the NEST scheme to help people interested in installing solar panels for Welsh residents.

This scheme includes advice and support on saving energy and money in your home and funded home energy improvements (including solar panels).If you’d like to know more about it, read the dedicated Welsh solar panel grant solar panel solar panel grants Wales article here.

Northern Ireland

There are currently no government-funded solar grants for homeowners in Northern Ireland, though VAT reductions and export tariffs may still apply

Like Wales, Northern Ireland currently has no domestic incentives for solar panels, and this situation is unlikely to change anytime soon.

Businesses can receive funding for up to 20% of the cost of their solar panel system installation.

As of 1st May 2023, solar panels are now available with 0% VAT, resulting in a saving of approximately £1,000 on installation and a yearly saving of £500 on electricity bills.

International solar panel grants

There are a number of government grants for solar panel users across Europe, which proves the growing importance of solar energy and how governments are trying to encourage people to make the most of solar energy.

For instance, if you lived in Ireland, you would be eligible for the Solar Electricity Grant and claim potentially €2,100 off the total cost of solar panels.

In Sweden, there is the Green Deduction, a tax incentive that directly applies to the total cost of a solar panel system to the value of £3,500 a year.

The 0% VAT on solar panels is also available in a number of European countries.

How to spot solar panel grant scams

There appear to be several fraudulent websites online that ostensibly claim to help you get funding you may be eligible for.

However, these sites are completely fraudulent and should be avoided at all costs.

Follow these simple steps to avoid getting scammed:

• Be wary of unsolicited offers: exercise caution when dealing with cold calls or emails offering solar incentives. Government agencies typically don’t target homeowners this way
• Seek official websites: check official government or grant websites to confirm that any offers that claim to be related to a scheme are genuine
• Verify identities: if you suspect you’re dealing with a scammer, ask them to confirm their identity. Representatives of legitimate businesses should be happy to provide you with official documentation
• Contact authorities: contact the relevant government departments or consumer protection agencies for advice concerning the legitimacy of any company or offer you’re uncertain about

How do I verify if a door-to-door solar grant offer is a scam?

There are a number of ways you can tell if a door-to-door solar grant offer is a scam.

• They use ‘high-pressure’ tactics, i.e. telling you the grant is only available today
• They might claim your current energy system is dangerous and needs to be replaced as soon as possible
• They keep pushing the ‘free solar panels’ angle. While it’s possible to get free solar panels, you have to meet specific criteria to do so

Are there commercial and business solar panel grants?

Yes, there are government business grants for solar panels and initiatives for commercial solar panels. The main ones include:

• The Smart Export Guarantee
• UK Shared Prosperity Fund (UKSPF) – Local council-led grants that can cover up to 75% of costs for energy-saving measures.
• Annual Investment Allowance – Allows businesses to deduct the full cost of solar installations from their taxable profits.
• VAT Relief – 0% VAT on solar systems and batteries.

What was the Feed-in Tariff and why did it end?

The Smart Export Guarantee replaced the Feed-in Tariff in 2020, a previous government scheme designed to pay consumers for surplus energy they generated.

There were two possible rates with the Feed-in Tariff:

1. The Generation Tariff paid for every kilowatt-hour (kWh)* produced. Rates depended on the system type, size, and date – with earlier installations receiving higher rates – but decreased over time to reflect falling renewable technology costs.
2. The Export Tariff added an extra payment for surplus electricity exported to the grid, encouraging efficient energy production beyond personal consumption.

The rates were not static and changed based on the technology, installation capacity, and when participants registered, but ultimately they were still set by Ofgem, which meant there was no choice between suppliers. As renewable tech got cheaper over the nine years of the scheme, potential FiT earnings took a sharp nosedive.

While the Smart Export Guarantee only offers rates for energy exports – energy you don’t use – it offers far greater flexibility than the Feed-in Tariff and allows consumers to shop around for the best rate.

Thanks to the FiT scheme, lots of people put solar panels on their houses and helped solar energy grow in the UK. Back in 2010, the UK’s solar capacity stood at a mere 95 MW but skyrocketed to over 13,265 MW by 2019, after the FiT’s influence.

However, while the FiT boosted demand and contributed to falling solar costs (in line with global trends), it wasn’t without criticism. Sharp, unexpected rate cuts sometimes led to uneven industry growth.

Still, the overall impact of the FiT was undeniably positive, acting as a cornerstone for the UK’s solar expansion over a decade.

The scheme was a victim of its success; it boosted the UK’s solar capacity by 2019 – and with cheaper panels available, solar installations made economic sense even without big incentives.

The government budget was also a factor in it being ended. The FiT’s generosity ended up costing consumers more through indirect green energy levies on utility bills. There were also concerns about overcompensating installers, leading to undue windfall profits.

Lastly, the UK’s energy strategy shifted its focus to larger-scale renewable projects and newer technologies that could make a bigger impact on reducing carbon.

In 2010, an early-adopter solar PV installation could get up to 41.3p per kWh through the scheme, with an added export tariff of around 3p per kWh. Given an average solar installation cost of £20,000 for a three-bedroom home back then, the rate of return was around 6.6%. This calculation means that you’d get 6.6% of the value of your investment over the lifetime of your solar panels.

By 2019, however, the generation tariff for new solar installations plunged to around 3.8p per kWh (while the average installation cost for a similar-sized home also dropped to around £7,026), with an export tariff of around 5-6p per kWh.

But while the 2019 figure sounds less appealing, it’s worth noting that the average rate of return here is very similar to figures in 2010, at 6.5%.

Can I still use the Feed-In Tariff?

No, the FiT scheme closed to new applicants on 31 March 2019, so no newbies are allowed. But if you got in before the deadline, you’re good – the rates you signed up for will stay the same until your contract ends.

The FiT guaranteed payments for a specific period, usually 20 years (or 25 years for solar PV systems installed before 1st August 2012). Meaning that those who got in just before the scheme’s end in March 2019 will continue to receive FiT payments until at least 2039.

What do I do if I don’t qualify for any solar panel grants?

If you don’t qualify for solar panel grants (for whatever reason), there are other ways (but explore all the alternative options previously mentioned first) to reduce costs. Here are just a few:

• We’ve mentioned this previously, but you could consider getting some financing options to install panels yourself. Fixed-interest loans can be spread over several years, making repayments fit your budget.
• Some companies offer solar panel leasing options. These allow you to lease the panels instead of buying them outright, resulting in lower electricity bills through a monthly fee.
• Participate in a community solar project where multiple households share the benefits of a single solar array. This can be a more cost-effective way to access solar energy without individual installations.
• Enhancing insulation, using energy-efficient appliances, and taking other measures can improve your home’s energy efficiency. This can lower your overall energy consumption and decrease your reliance on solar panels.
• Consider buying second-hand or refurbished solar panels as they can be much cheaper than new ones while still providing good performance.

Are there any grants for replacing existing solar panels?

If you have an existing solar panel system installed on your home, it is quite likely you’ll not meet some of the eligibility requirements for grants (like poorer EPC ratings, for example). Remember, the point of most of these schemes is to help households who currently do not benefit in any way from renewable energy technologies, like solar panels.

However, if the solar panels are older (and therefore less efficient), it may be worth you applying, in any case, to have them replaced as you may meet other eligibility requirements (like income, etc.).

What is the Solar Roadmap?

The Solar Roadmap is a government-industry paper which sets out the practical measures to improve the UK’s supply of clean power and is designed to help the government achieving its stated goal of becoming a clean energy superpower. 

It has be built by the Solar Taskforce, which is led by Secretary of State for Energy Security and Net Zero Ed Miliband and Solar Energy UK Chief Executive Chris Hewett. It will transition into the Solar Council, which will make sure the plan is implemented. 

The Solar Roadmap covers: 

• Rooftop – the government will work to reduce the upfront cost of solar panels, collaborating with the Green Finance Institute, the finance sector, consumer bodies and the solar sector itself. They will also look to improve awareness of the benefits of domestic and commercial solar panels. 
• Grid – the Roadmap will aim to cut “damagingly long waiting times” for connection of large projects by getting them working and online sooner.
• Supply chain – the government will consider supporting companies looking to scale up production. It will also act to stop the procurement of solar panels made with raw materials involving forced labour. 
• Skills – the government and Solar Energy UK will work with businesses, collages and trade bodies to attract and retain newly-trained installers.
• Planning – Solar Energy UK has committed to working with the planning profession to make sure that training is “fit for purpose” and plug the gap in expertise needed to assess solar applications effectively. 

Is the ECO4 scheme about to be scrapped?

Yes, the ECO4 scheme will be scrapped after March 31 2026.

Rachel Reeves announced in her Budget speech in November that ECO4 will be scrapped after finding that it hadn’t helped families cut energy bills and had actually been a cost to billpayers.

There has also been accusations of mismanagement and shoddy work completed by installers under it.

The Ofgem-administered scheme has covered insulation, boiler repairs, and heat pump installation. 

Since it’s initial launch 2013, the amount of funding households have received through ECO has depended on the home’s specific needs, and the funding came from the energy company, not the government, as long as the home met the criteria.

Summary

• Most available grants are steered towards improving energy efficiency in general.
• Some grants can still be used to install solar panels as part of energy efficient upgrades.
• Financing and loan options could make affording the upfront costs of solar panels more manageable, but be careful about potentially getting into debt. Carefully research any financing and loan options before committing.
• The SEG pays solar panel owners for their excess electricity, increasing savings by £165 per year, on average. 
• A typical home could save up to £537 per year with solar panels.
• Sixty-nine per cent would buy a property with solar panels, up from 65% last year, according to our latest National Home Energy Survey.
• 2023 was a record year for residential solar installations.

There are plenty of grants aimed at improving energy efficiency. 

There are also financing and loan options that make paying solar panels upfront costs more manageable, however, make sure to research if this is a viable option for you. Getting into debt to save some money might not be the best option for you. 

And the average home will save up to £537 per year with solar panels.

Next steps

All the grants, financing schemes and initiatives we have mentioned are designed to help you manage the upfront costs of solar panels, plus, you’ll break even on them in 15.46 years on average. 

That leaves you with a further 10-15 years of clean energy savings, meaning solar panels more than pay for themselves. As previously mentioned, if you’re interested in getting solar panels – regardless of if you qualify for a grant or not – you can fill in our short quotes form. 

We’ll pass your details onto our trusted network of solar panel installers, who’ll get back to you with bespoke quotes for you to compare.

Written By

Tamara Birch Newsletters and sponsored content editor

Tamara is a journalist with more than six years experience writing about environmental topics. This includes advising small businesses on cost-effective ways tom become more sustainable, from installing to solar panels and heat pumps and reducing waste. She has used her journalist and research skills to become highly knowledgeable on sustainable initiatives, issues, and solutions to help consumers do their bit for the environment – all while reducing monthly costs. Now, she’s using this experience to advise homeowners on the benefits of installing low-carbon technologies. She is also qualified in offering innovative initiatives to improve sustainability practices in businesses, from advertising to marketing and publishing.

Her passion for sustainability and eco-friendly solutions stems from a long obsession with nature and animals and ensuring they feel looked after. In her free time, Tamara enjoys reading fantasy novels, visiting the gym, and going on long walks in new areas.

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Reviewed By

Maximilian Schwerdtfeger Content manager

Max joined The Eco Experts as content manager in February 2024 and became deputy editor in 2025. He has written about sustainability issues across numerous industries, including maritime, supply chain, finance, mining, and retail. He has also written extensively for consumer titles like City AM, The Morning Star, and The Daily Express.

In 2020, he covered in detail the International Maritime Organisation’s (IMO) legislation on sulphur emissions and its effects on the global container shipping market as online editor of Port Technology International.

He also explored the initiatives major container ports and terminals have launched in order to ship vital goods across the world without polluting the environment.

Since then, he has reported heavily on the impact made by environmental, social, and governance (ESG) practices on the supply chain of minerals, with a particular focus on rare earth mining in Africa.

As part of this, in 2022 Max visited mines and ports in Angola to hone in on the challenges being faced by one of the world’s biggest producers of rare earth minerals.

His most recent sustainability-related work came much closer to home, as he investigated the eco-challenges faced by independent retailers in the UK, specifically looking at how they can cut emissions and continue to thrive.

Max lives in South London and is an avid reader of books on modern history and ghost stories. He has also recently learned to play the game Mahjong and takes every opportunity to do so. He is also yet to find a sport he doesn’t enjoy watching.

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