If you’re wondering whether free solar panel installation is still possible in the UK, the good news is that various funding options and grants are available to help with the cost.
🚨 Important Update: The Feed-in Tariff (FiT) and Green Homes Grant are both now closed, but alternative schemes have since been introduced.
So, what financial support is currently available for UK residents? Let’s explore the latest solar panel grants and funding options.
Pro tip: Avoid upsells and confusing packages—choose a provider with a clear, fixed-price quote that won’t change. Heatable, a Which?-approved solar installer, offers transparent pricing with no surprises.
What Solar Panel Grants Are Currently Available?
As of 2025, there are two potential sources of government funding for solar panels: the Energy Company Obligation Scheme (ECO) and the Warm Homes Plan.
Additionally, there are several other incentives available for households that adopt solar technology, including:
| UK Solar Grants | Run Time | Potential Savings |
|---|---|---|
| Energy Company Obligation 4 (ECO4) | April 1st 2022 – March 2026 | Partially or fully FREE solar panel possibility |
| Smart Export Guarantee (SEG) | January 1st 2020 – (indefinite) | 1 – 7.5p per kWh |
| Warm Homes Plan | January 2025 – 2028 | Up to £30,000 |
| 0% VAT | April 1 2022 – March 2027 | £1,300+ on installation & energy bills |
| Renewable Heat Incentive (RHI) | Expired March 31st 2022! | Up to £2,981 |
| Feed-in Tariff | 2010 – 2019 (Expired)(Those registered will continue to benefit) | Generation Tariff – 6.38 – 13.88p per kWhExport Tariff – 4.77p per unit |
| Free Solar Panel Scheme | Expired March 2019 | Fully free solar panel system (£5,000-£11,000) |
Table last updated Feb 2025.
Warm Homes Plan
Launched in January 2025 and set to run until 2028, the Warm Homes Plan is a new initiative by the Labour government designed to provide financial support for solar panel installations.
This programme aims to lower energy bills while encouraging the wider adoption of renewable energy across the UK.
Who Can Benefit?
Eligible households can receive funding of up to £30,000 for specific home improvement projects, with a strong focus on:
✅ Low-income households
✅ Renters
✅ Social housing tenants
How to Apply for the Warm Homes Plan
🔹 Step 1: Check Your Eligibility
Visit the official Warm Homes Plan page on the UK government’s website or contact your local council to confirm whether you qualify.
🔹 Step 2: Submit Your Application
Applications open in January 2025 and can be submitted via the Department for Energy Security and Net Zero’s website or at designated application centres across the UK.
💡 Required Documents: You’ll likely need to provide supporting documents such as proof of income or benefit entitlement to verify your eligibility.
🔹 Step 3: Assessment & Installation
If your application is successful, a professional assessor will visit your home to determine its suitability for solar panel installation.
✔️ If your property qualifies, certified installers will carry out the work, ensuring it meets safety and energy efficiency standards.
Why Apply?
The Warm Homes Plan offers a fantastic opportunity for eligible households to reduce energy costs, improve home efficiency, and contribute to the UK’s renewable energy goals.
ECO4 Solar Panel Funding
The Energy Company Obligation (ECO) is at its 4th iteration hence the name ECO4.
This funding is only available to households who meet the eligibility criteria, which includes the following:
- Your household earns less than £31,000 per year. You’ve been referred by your energy provider, local authority, or doctor.
- You receive certain benefits. In order to qualify for ECO4 funding for solar panels your home must also use an electrical heat source e.g. a heat pump or an electric boiler.
- Your home must also be insulated to a certain standard so you may be able to receive funding for home insulation too.
Reduced VAT Rate on Solar Panels
The other available scheme is a reduction in the Value Added Tax (VAT) for energy-saving materials, with the VAT on such products reduced to 0%.
Eligible individuals only need to pay 5% VAT on products such as solar batteries and panels, as opposed to the standard 20% VAT.
The scheme is live from April 2022 to 2027 which means that vulnerable households will pay less to make upgrades that meet the requirements of the scheme.
Recommended reading:
Home Energy Scotland Solar Funding
If you reside in Scotland, you may be eligible for a grant to cover the cost of solar panels and a battery.
The Home Energy Scotland Loan is an interest-free loan aimed at financing energy efficiency measures and renewable systems, including solar panels and battery storage.
You may receive a loan of up to £6,000 for a solar PV system and £5,000 for a solar battery storage system, with a repayment period of 5 to 10 years depending on the installation.
To determine specific eligibility criteria, please visit the Home Energy Scotland website.
Smart Export Guarantee (SEG)
In addition to the previous incentives, you can also take advantage of the Smart Export Guarantee (SEG) scheme, which enables you to earn money for exporting excess stored electricity back to the national grid.
The export tariffs vary based on the supplier and your location, with the best tariffs reaching up to 15p per kWh.
Make sure to compare tariffs from different suppliers to find the best deal.
For reference, a typical household located in the central region of the country could earn an estimated £80 to £110 per year (based on an export rate of 3.99p per kWh).
Are Free Solar Panels Available?
Currently, free solar panels are not available in the UK.
In 2010, some solar companies offered practically free solar panel installations due to the incentives of the Feed-in Tariff.
However, since the end of the Feed-in Tariff, this incentive no longer exists and solar companies now charge for their installations.
Get a free estimate for your solar with the experts at Heatable:
- It’s free, easy, and without obligation
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Free Solar Panels UK Conclusion
To summarise the current situation on free solar panel grants and funding in the UK:
- No government grants for solar panels are available
- Free solar panels are not offered
- The Smart Export Guarantee is available for earning money by exporting excess stored electricity
- An average-sized home could save up to £744 per year by utilizing these incentives, including £514 from energy generation and £230 in SEG revenues.
Get a quote today and find out exactly how much solar is likely to cost you.
We always advise households to seek multiple solar installation quotes (at least three), so that you can compare quotes and get the best price possible.
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