Skip to content
The Cost of Solar

Solar panel grants in the UK (2026)

Aerial view of an all-black solar PV array on a UK stone house roof
Photo: Premier Electrical Renewables

The honest answer

There is no universal grant for home solar in England. The main saving is 0% VAT until 31 March 2027, plus means-tested help and export income.

We don't earn commission steering you to a 'grant scheme', so here's what genuinely exists — and what doesn't.

Plenty of sites imply a generous solar grant exists to get your details. The reality is narrower but still useful. 0% VAT applies on residential solar and batteries until 31 March 2027 — the single biggest universal saving. Beyond that, support is targeted:

Solar-related funding and savings available in the UK (2026)
SchemeWho qualifiesWhat you getNotes
0% VAT on solar & batteriesAll GB homeownersSaves the 5% VAT — until 31 March 2027Automatic via installer
ECO4 / Warm HomesLow-income, low-EPC householdsFree or subsidised measuresMeans-tested eligibility
Home Energy Scotland LoanScottish homeownersInterest-free loan (not a grant)Repayable
Smart Export Guarantee (SEG)Anyone exporting solarPaid per kWh exported (~12–20p)Ongoing income, varies by supplier
Improving Farm Productivity grantEngland farm businesses~25% of eligible solar costNot "FETF 40%" — rate differs by UK nation

The schemes that matter most

0% VAT is automatic — your MCS installer applies it to a qualifying residential install. ECO4 / Warm Homes can fully fund measures for No general grant low-income, low-EPC homes. The Smart Export Guarantee pays you for exported surplus at ~12–20p/kWh, so it's ongoing income rather than an upfront grant.

Watch the farm-grant myth: England farm solar is funded through the Improving Farm Productivity grant at ~25%, not the widely-repeated "FETF 40%". For comparison, the heat-pump £7,500 Boiler Upgrade Scheme grant does not cover solar PV at all.

Once you know what help applies, see what a system actually costs on the solar cost page or run your numbers in the calculator.

CoS The Cost of Solar data desk Last updated Every figure sourced

Frequently asked questions

Is there a government grant for solar panels in the UK in 2026?

There is no universal grant for home solar in England. The main saving is 0% VAT until 31 March 2027. Means-tested schemes (ECO4 / Warm Homes) help low-income, low-EPC households, and Scotland offers interest-free loans.

How much is the VAT saving on solar?

Residential solar panels and battery storage are zero-rated for VAT in Great Britain until 31 March 2027, after which VAT is scheduled to return to 5%. On a £7,000 system that 0% rate is a real saving versus the standard rate.

Are there grants for solar on farms or businesses?

England farm solar is supported by the Improving Farm Productivity grant at roughly 25% of eligible cost — not the often-quoted "FETF 40%". Grant rates and schemes differ across England, Scotland, Wales and Northern Ireland, and businesses can also claim capital allowances.

Sources

  1. HMRC — VAT Notice 708/6 (energy-saving materials)
  2. GOV.UK — ECO4 / Energy Company Obligation
  3. Defra — Farming Investment Fund
  4. Ofgem — Smart Export Guarantee