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Solar Panel Grants UK (2024)
Government Solar Panel Grants in the UK
As of this year, various government grants and incentives are available to support domestic solar panel installations. These initiatives aim to make solar energy more accessible and appealing to homeowners, aligning with broader environmental goals. While the landscape of solar panel funding is ever-evolving, these programs offer substantial support for those looking to invest in solar energy.
| UK Solar Grants | Eligibility Criteria | Run Time | Potential Savings |
|---|---|---|---|
| Home Upgrade Scheme (HUG2) | Low income households, off-grid, low energy efficiency rated property | April 2023-March 2025 | Local authority dependent, but households could receive up to £10,000 |
| Solar Together | Homeowners and renters living in a participating council area | Ongoing | Savings vary (savings of 10–25% have been made previously) |
| Home Energy Scotland Grant and Loan Schemes | All households in Scotland | Ongoing | Households could receive up to £6,000 |
| Welsh Government Warm Homes Nest Scheme | Welsh households receiving income-related benefits, properties with low energy performance ratings | Ongoing | Households could receive free solar panels |
| Energy Company Obligation 4 (ECO4) | Homes in England, Scotland, or Wales. Eligibility determined by local authorities | April 1st 2022–March 2026 | Partially or fully FREE solar panel possibility |
| Smart Export Guarantee (SEG) | 1p – 24p per kWh of excess electricity produced by solar panels | January 1st 2020 – (indefinite) | 1–7.5p per kWh |
| 0% VAT | Solar panel purchases and installations made in England, Scotland, and Wales | April 1, 2022–March 2027 | £1,300+ on installation & energy bills |
| Renewable Heat Incentive (RHI) | Owners of biomass boilers, heat pumps, and solar thermal collectors | Expired March 31st 2022 | Up to £2,981 |
| Feed-in Tariff | Owners of solar panels, wind turbines, and micro combined heat and power (micro-CHP) systems | 2010–2019 (Expired)(Those registered will continue to benefit) | Generation Tariff – 6.38–13.88p per kWh Export Tariff – 4.77p per unit |
| Free Solar Panel Scheme | All homewoners | Expired March 2019 | Fully free solar panel system (£5,000-£11,000) |
Table last updated January 2024.
Understanding ECO4 and Other Financial Supports for Solar Panels in the UK
The UK government and various organizations provide multiple avenues of financial support for homeowners looking to install solar panels. These initiatives aim to make solar energy more accessible and affordable, particularly for households that meet specific criteria. Here’s a comprehensive look at some of the key programs:
ECO4 Scheme: A Closer Look
The Energy Company Obligation (ECO) has reached its fourth iteration – ECO4. This program is designed to help low-income households transition to more energy-efficient solutions, including solar panels. To be eligible for ECO4 funding, households must:
- Have an annual income of less than £31,000.
- Be referred by their energy provider, local authority, or a medical professional.
- Be recipients of certain benefits.
- Use an electrical heating source like a heat pump or electric boiler.
- Have a home that is insulated to a certain standard, with funding also available for insulation improvements.
Under ECO4, qualifying households benefit from a reduced VAT rate of 5% on solar panels and batteries, a significant saving compared to the standard 20% VAT. This reduced rate applies to several eco-friendly home upgrades and is in place from April 2022 to 2027.
Home Energy Scotland Loan
Specifically for residents in Scotland, this interest-free loan supports the installation of energy-efficient and renewable energy systems. Eligible applicants can receive:
- Up to £6,000 for a solar PV system.
- Up to £5,000 for solar battery storage.
The repayment period ranges from 5 to 10 years, with more details and application guidelines available on the Home Energy Scotland website.
Smart Export Guarantee (SEG)
The SEG offers an income opportunity for households by paying them for surplus electricity exported back to the grid. Export tariffs vary by supplier and region, with some of the best rates reaching up to 15p per kWh. This means a typical household could earn between £80 and £110 per year, based on a rate of 3.99p per kWh, by participating in this scheme.
Solar Panel Finance & Loans
For those not qualifying for government or charitable grants, private loans can provide a viable alternative. Companies like Pegasus Finance and EvoEnergy offer specialized loans for solar panel installations, featuring low interest rates and reasonable repayment terms. These financial products are designed to make solar energy systems more attainable for a broader range of homeowners.