Updated April 2026
Solar Panel Grants & Incentives in United Kingdom (2026)
0% VAT + up to £15,000 Warm Homes grant
There are currently 3 active solar incentives available in United Kingdom. 0% VAT saves ~20%; Warm Homes grant up to £15,000 for eligible households.
Active Incentives
Warm Homes: Local Grant
Value
Up to £15,000 per household
The successor to ECO4 and HUG2, providing up to £15,000 for energy efficiency upgrades including solar PV for low-income households, delivered through local councils from April 2025.
Eligibility criteria
- Low-income households (specific income thresholds to be confirmed by your local council)
- Property with EPC rating D, E, F, or G
- Devolved equivalents available: Warm Homes Nest (Wales), Warmer Homes Scotland
- Owner-occupiers and private renters may qualify
- Delivered through local authority schemes — availability varies by area
How to apply
Apply through your local council. Search "[your council area] Warm Homes Local Grant" or contact your council's housing or energy team. You can also check gov.uk for the latest guidance and links to local delivery bodies.
Things to know
This scheme replaced ECO4 (closed March 2026) and HUG2 (closed March 2025). Solar PV is one of the eligible measures. Check with your local council for current availability as funding is allocated regionally.
Last verified: 6 April 2026
Smart Export Guarantee (SEG)
Value
1p–30p per kWh exported (varies by tariff and supplier)
Mandatory export payment scheme requiring licensed electricity suppliers to pay solar panel owners for surplus electricity exported to the grid. Best rates currently range 16–30p/kWh.
Eligibility criteria
- Grid-connected solar PV system of any size (up to 5 MW)
- System must be MCS-certified (or equivalent)
- Smart meter capable of providing half-hourly export readings
- Must be the owner or have landlord permission
How to apply
Apply to a licensed energy supplier offering SEG tariffs. Best current flat rates: E.ON Next at ~16.5p/kWh. Best variable rates: Octopus Flux up to 30p/kWh (requires battery + Octopus import tariff). Compare at uswitch.com. You can switch SEG provider independently of your import tariff.
Things to know
SEG replaced the Feed-in Tariff (closed April 2019). Rates are not fixed — the best rates now significantly exceed the old FIT for many customers, especially with variable tariffs. Octopus Flux can pay up to 30p/kWh during peak export windows if you have battery storage.
Last verified: 6 April 2026
0% VAT on Residential Solar Panels
Value
20% saving on installation cost (VAT is currently zero-rated)
Residential solar panel installations are currently zero-rated for VAT, saving ~20% on installation costs. Note: scheduled to revert to 5% from 1 April 2027.
Eligibility criteria
- Residential property in the United Kingdom
- Solar PV panels, battery storage, and installation all qualify
- Heat pumps and certain other energy efficiency measures also included
How to apply
No application required. Any VAT-registered solar installer must charge 0% VAT on residential solar. Ensure your quote shows 0% VAT. This has applied since April 2022.
Things to know
⚠️ Time-limited: the 0% rate is currently scheduled to revert to 5% from 1 April 2027. Installing before this date preserves the full saving of ~£1,200–£2,000 on a typical 4 kW system. Monitor gov.uk for any extension announcement.
Last verified: 6 April 2026
Closed Schemes
ECO4 Scheme
The ECO4 (Energy Company Obligation) scheme closed to new applications in March 2026. It has been replaced by the Warm Homes: Local Grant.
ECO4 closed to new applications in March 2026. Its replacement is the Warm Homes: Local Grant, which offers up to £15,000 for eligible low-income households.
Home Upgrade Grant Phase 2 (HUG2)
HUG2 ended on 31 March 2025. It provided up to £10,000 for off-gas-grid properties.
HUG2 (£630m scheme) ended 31 March 2025. The Warm Homes: Local Grant succeeded it from April 2025.
Frequently Asked Questions
What solar grants are available in the UK in 2026?
ECO4 closed in March 2026 and has been replaced by the Warm Homes: Local Grant, which offers up to £15,000 for low-income households delivered via local councils. All residential solar installations benefit from 0% VAT (saving ~20%), though this is scheduled to revert to 5% from April 2027. The Smart Export Guarantee pays for electricity exported to the grid, with best rates now reaching 25–30p/kWh.
Has ECO4 been replaced?
Yes — ECO4 closed to new applications in March 2026. It has been replaced by the Warm Homes: Local Grant, which provides up to £15,000 for energy efficiency upgrades including solar for eligible low-income households. This is delivered by local councils, so check with your local authority for availability.
Is the 0% VAT on solar panels still available in 2026?
Yes, but it's time-limited. The 0% VAT rate currently applies to all residential solar installations and is saving homeowners ~£1,200–£2,000 on a typical system. However, it is currently scheduled to revert to 5% from 1 April 2027. Installing before that date preserves the full saving.
How much does the Smart Export Guarantee pay in 2026?
SEG rates have improved significantly. Best flat rate: E.ON Next at ~16.5p/kWh. Best variable rate: Octopus Flux up to 30p/kWh during peak export windows (requires battery storage and Octopus import tariff). Compare rates at uswitch.com or energyguide.com to find the best current offer.
Calculate your cost after grants
Use our calculators to estimate your installation cost, then apply the grants above to see your real net cost and payback period.
Related Solar Terms
Disclaimer: Grant information is provided for guidance only. Eligibility criteria, amounts, and availability change frequently. Always verify current details at the official scheme pages before making financial decisions. Solar Estimator is not responsible for changes to grant schemes after the last verified date shown above.