Available solar panel grants and schemes in 2025
As well as being great for the planet, solar panels can save you money in the long run by reducing your energy bills. But they do come with an upfront cost.
Luckily, there are ways to get help with the upfront cost of solar panel installation. Here, we’ll walk you through the different solar panel grants and schemes you could be eligible for.
Can I get free solar panels?
Lots of homeowners are keen to find out whether they can get free solar panels.
For some homeowners, the answer is yes.
Several of the grants and schemes we’ll cover in this article can cover up to 100% of the upfront cost of solar panels.
- They all have different eligibility criteria
- Sometimes, it’s down to the discretion of individual energy companies
- Local authorities may have final approval
Most homeowners find that they have to pay at least some of the upfront cost themselves, but that a grant or scheme can provide helpful savings.
Ultimately, the best way to find out if you can get free solar panels is to look into the various schemes available to see if you meet their criteria.
What grants and schemes are available for solar panels in 2025?
There aren’t many grants or schemes designed specifically to help with the cost of solar panel installation. Most are geared towards home upgrades to improve energy efficiency and reduce carbon emissions.
Luckily, solar panels are a fantastic way to achieve both – so there are several grants and schemes you could leverage to help you with the cost of solar panel installation.
Here are the main ones to be aware of:
- ECO4
- ECO Flex
- The Warm Homes: Local Grant (this has replaced The Home Upgrade Grant)
- 0% VAT
- Solar Together
- Smart Export Guarantee
Read on to learn more about each of them – and which you might be eligible for.
Alternatively, enter your postcode below to find solar panel installers, accredited by the microgeneration certification scheme (MCS), in your area.
ECO4
ECO4 is the fourth iteration of the Energy Company Obligation – a government initiative designed to improve home energy efficiency, reduce carbon emissions, electricity usage, and energy bills in Great Britain. ECO4 is scheduled to run until March 2026.
How does ECO4 work?
The scheme works by requiring medium and large energy suppliers to promote actions that improve the ability of low-income, fuel-poor, and vulnerable households to heat their homes efficiently.
These are known as ‘obligated’ suppliers and include British Gas, EDF Energy, Scottish Power and Ovo.
As part of the requirement, suppliers have to help eligible homes with energy-efficient upgrades.
This includes measures such as insulation, boiler repairs, and heat pump installation – as well as financial help towards the cost of solar panels.
Who’s eligible for ECO4?
The ECO4 scheme is designed for those considered to be in fuel poverty.
To be eligible for solar panels through the scheme, your home must have a low EPC rating (normally a ‘D’ rating or below) and an existing electric heating system.
You’ll also need to either own your own home or have permission from your landlord if you’re renting.
You’ll generally also need to receive at least one of the following benefits:
- Child Benefit
- Pension Guarantee Credit
- Income-related Employment and Support Allowance (ESA)
- Income-based Jobseeker’s Allowance (JSA)
- Income Support
- Tax Credits (Child Tax Credits and Working Tax Credits)
- Universal Credit
- Housing benefit
- Pension Credit Savings Credit
How much could you save?
With ECO4, you could save up to 100% of the cost of solar panels – as long as they power an electric heating system. However, there are no guarantees.
This is because the energy company is responsible for the level of funding and can also make choices about the projects and installers they work with.
How to apply for the ECO4 Scheme?
You can contact any of the obligated energy suppliers to see if they can help you benefit from the scheme.
Head over to Ofgem’s website for a full list of obligated suppliers.
Another way to access the scheme is by getting referred by your local authority under ECO4 Flex (more on this next).
However, remember that just because you meet the eligibility criteria for the scheme, this doesn’t necessarily mean that an energy provider will decide to install solar panels in your home.
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ECO4 Flex
ECO4 Flex is an ‘add on’ to the ECO4 energy efficiency scheme, which allows local authorities (LAs) – and the Scottish and Welsh governments (DAs) – to refer households to an obligated energy supplier.
How does ECO4 Flex work?
Under ECO4 Flex, low-income households that don’t receive means-tested benefits can get referred to the ECO4 scheme by LAs and DAs.
- This allows households who wouldn’t ordinarily qualify for the scheme to access energy efficiency improvements if an LA or DA believes they could benefit from it
- Energy suppliers can also refer households under ECO4 Flex – for instance if they’re struggling with fuel debt
ECO4 Flex eligibility
ECO4 Flex provides more flexibility than ECO4 eligibility as it considers health and income vulnerabilities even if you don’t meet the standard benefit-based criteria.
You might be eligible to be referred under ECO4 Flex if you live in a property that needs energy efficiency upgrades and:
- You have a combined gross annual household income under £31,000 or
- A person in your household has a severe or long-term health condition that is adversely affected by living in a cold home, and is due to one of the following:
- A cardiovascular condition
- A respiratory disease
- Limited mobility
- Immunosuppression
How much could you save?
ECO4 Flex is essentially just another way of accessing the ECO4 scheme.
So, the same applies in terms of how much funding you could access – while you could save up to 100% of the cost of solar panels, it all comes down to the energy supplier.
But remember: even if you’re referred by an LA or DA, this doesn’t necessarily mean that an energy supplier or installer will decide to install solar panels – or any other energy efficiency measures – in your home.
How to get ECO4 Flex
Usually, homeowners are identified by LAs or DAs, using a broad range of criteria.
However, you can also contact your LA or DA to find out if they participate in the scheme and if you could be eligible.
Some may also allow self-referral, so ask them or check their website to find out.
The Warm Homes: Local Grant
The Warm Homes Local Grant replaced the Home Upgrade Grant and runs from 2025 to 2028.
It provides energy performance upgrades and low carbon heating to low-income households in England through local authority funding.
How does it work?
The Warm Homes Local Grant allows selected local authorities to fund home improvements for homes located in their area.
This includes improvements such as insulation, solar panels, and an air source heat pump, if suitable.
Warm Homes Local Grant eligibility
To be eligible for the Warm Homes Local Grant, you have to live in one of the local authorities that have been allocated funding.
But you’ll also have to…
- Be low income
- Have an EPC rating between D and G
- Be privately owned (owner occupied or privately rented)
How much could you save?
How much you could save through the scheme will depend on your local authority. Energy-efficient upgrades will be tailored to individual homes to ensure the most appropriate measures are installed.
How to apply for the Warm Homes Local Grant
The first step is to visit gov.uk to find out if your local authority is eligible to offer these grants.
If you live in one of the funded areas, simply contact your local authority to find out the next steps.
0% VAT
0% VAT isn’t a grant or scheme as such – rather, it’s a government measure that enables homeowners to pay 0% VAT on solar panels and other energy-saving materials.
How does it work?
If you choose to get solar panels installed on your home in the UK, you no longer have to pay VAT.
This applies to both the cost of your solar panels and the cost of installation.
However, for this to be the case, you’ll need to use the same company to supply and install your solar panels.
If instead you buy your solar panels from one company and get them installed by another, you’ll need to pay 5% VAT on the cost of installation.
It’s also worth noting that you’ll be charged 5% VAT on the cost of any repairs or solar panel maintenance needed after your solar panels have been installed.
Who’s eligible for 0% VAT?
Any homeowner in the UK can make the most of 0% VAT.
However, you’ll need to be getting solar panels installed on a domestic property, rather than a business address.
How much could you save?
Previously, homeowners had to pay 5-20% VAT on solar panel supply and installation. So, in principle, the cost savings here can be large.
However, bear in mind that since 0% VAT on solar panels was introduced in 2022, rising inflation has caused many installers to raise their prices. Therefore costs aren’t vastly lower now than they were before.
How to access 0% VAT
You don’t have to do anything specific to access 0% VAT.
Instead, the change should be reflected on the quote and invoice you receive from your solar panel installer.
Just remember to try and get the same company to supply and install your panels to benefit fully from the VAT cut.
Smart Export Guarantee
The Smart Export Guarantee (SEG) is a little bit different in that it doesn’t help toward the upfront cost of your solar panels. Instead, it allows you to receive payments from energy suppliers for exporting any surplus solar-generated electricity back to the grid.
How does SEG work?
The SEG is a government-backed scheme.
It allows homeowners to receive payments from energy suppliers for any unused electricity they generate from low-carbon technology that they export back to the grid.
Homeowners simply sign up with an energy supplier registered as a SEG Licensee.
Each supplier will determine their own tariffs, contract lengths, and other terms, so it’s worth shopping around.
Who’s it for?
Anyone with a renewable electricity generating system that meets the SEG eligibility requirements can apply to sell their unused energy to an SEG Licensee (unless you’re already receiving export payments under the Feed-in Tariff scheme).
- However, you’ll need a meter that can provide half-hourly export readings – usually, a smart meter
- You’ll also need to make sure that your installation and installer are certified through the MCS or equivalent
How much could you save through the SEG?
How much you could save through the SEG will depend on how much electricity you generate and consume – as well as the tariff you receive for the energy you export.
Energy suppliers offer their own tariffs which pay a set rate per kWh of electricity you export. So, make sure you shop around for the best deal.
Depending on the supplier you choose, you could save up to £360 a year through the SEG.
However, there are a few standout tariffs, particularly the Intelligent Octopus Flux from Octopus offering much higher export rates for existing customers with solar panels and battery storage.
How to get it
To benefit from the SEG, you’ll need to apply directly to an energy supplier that provides SEG tariffs. You can find a full list on the Ofgem website.
Your SEG tariff supplier doesn’t need to be the same one that provides your energy – although you might qualify for a better deal if it is.
SEG suppliers have to offer you a tariff if you apply, but they get to choose the terms. For instance, whether it’s fixed or variable.
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Solar Together
Solar Together is a group-buying initiative. It allows communities to team together to buy solar panels for their homes at competitive prices.
How does Solar Together work?
The Solar Together scheme is run by iChoosr.
Essentially, if your council is participating, you can sign up to register your interest in solar panels.
Solar installers who work with the initiative can then enter an auction to try and get the job. The lowest-bidding installer wins!
This means you can get your solar panel system at a competitive price – usually, much less than if you’d chosen to purchase solar panels independently.
Who’s it for?
To join a Solar Together scheme, you’ll need to live in a participating council.
You’ll also need to own your own home (or workplace), have your landlord’s permission, or be part of a commonhold association.
Plus, you must be able to pay a £150 deposit if you decide to go ahead with the installation.
How much could you save?
Group buying can lead to better deals for everyone.
Previously, the scheme has secured average savings of 10-25% compared to the typical market price.
However, it all depends on the project and the winning bid!
How to access Solar Together
The first step is to find out whether your local authority is part of the scheme. You can do this via the Solar Together website.
If you find that you live in a participating local authority, you can register for free by answering some simple questions about your property.
When enough households join, the ball will then be set in motion.
But even if your local authority isn’t yet part of the scheme, you can still register your interest, just in case!
Other ways to save on the cost of solar panels
If you don’t qualify for grants and schemes, there are other ways to reduce the upfront cost of solar panel installation.
1. Solar panel leasing
Some companies have options where you can lease solar panels.
This involves a third party installing them on your property and then selling you the energy they generate.
2. Solar panel subscriptions
With a solar panel subscription, your installation company will own, install, and maintain your solar panels – in exchange for a monthly fee.
Meanwhile, you get to own the energy they generate. After a fixed period of time (normally around 20 years), you can usually choose to buy the solar panels or have them removed.
3. Financing
There are many different financing and loan options to help with the upfront cost of solar panel installation.
For instance, if you live in Scotland, you may be eligible for the Home Energy Scotland Grant and Loan, which could give you an interest-free loan of up to £5,000 to install a solar thermal or hybrid solar PV / water heating system.
4. Pre-loved
Keep a lookout for second-hand or refurbished solar panels.
These are often much cheaper than buying new ones and can still provide good performance.
However, do ensure you verify their condition, certification, and warranty before purchasing.
5. Get several quotes
Never underestimate the power of getting multiple quotes for the work.
We always recommend getting at least three quotes. That way, you can get a feel for a range of companies and ensure you’re getting the best value.
Key takeaways
- There are several energy grants and schemes available that can help towards the cost of solar panel installation
- For most homeowners, there’ll still be a financial outlay involved, but grants and schemes can provide significant savings
- If you’re not eligible for grants and schemes, you can still explore other ways to reduce your overall cost, such as solar panel leasing
- Always choose an MCS-certified solar panel installer to complete the work
Search your postcode to find certified solar panel installers in your local area.
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