Solar panel grants & funding in 2026 (England + Scotland)

Solar panels have exploded in popularity across the UK as homeowners look to cut electricity bills and shrink their carbon footprint. Government deployment data shows the UK had around 1.735 million solar installations by the end of February 2025.

With electricity still pricey, generating your own low-carbon power can be a seriously smart move – but the upfront cost can sting.

The good news: while there aren’t many “cash-in-hand solar grants” everywhere, there are a few big schemes in 2026 that can cover solar as part of wider home energy upgrades, plus ongoing incentives that improve payback.

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.

Sceme / incentive	Where	What it does	Status in 2026
ECO4	England, Scotland, Wales	Supplier-funded efficiency upgrades; can include solar in some cases	Live – ends Dec 2026
Home Upgrade Grant (GUG2)	England	Council-delivered upgrades for eligible off-gas homes	Closed to new delivery (ran to March 2025)
Home Energy Scotland Grant & Loan	Scotland	Grants + optional interest-free loans for energy improvements (rules vary by package)	Live
0% VAT on solar	UK	Cuts upfront cost	0% until 31 Mar 2027
SEG	UK	Pays for exported electricity	Live

Quick takeaways:

Home Upgrade Grant Phase 2 (HUG2): delivered via councils from April 2023 to March 2025 – meaning it’s not a new-application option in 2026 (though some areas may still be finishing works started earlier).
ECO4 (Energy Company Obligation): government has confirmed an extension – ECO4 now ends 31 December 2026. It can fund energy upgrades for eligible households and may include solar PV depending on the route and measures.
Scotland: Home Energy Scotland Grant & Loan: still a major route in 2026, offering grant + optional interest-free loan support for renewables and efficiency.
0% VAT on solar: solar (and eligible energy-saving materials) are zero-rated for VAT until 31 March 2027.
Smart Export Guarantee (SEG): you can get paid for surplus electricity exported to the grid – tariffs vary by supplier and must be above zero.

What grants are actually available for solar in 2026?

Here’s the honest framing:

In England, most “funded solar” comes via whole-home retrofit schemes (especially ECO4) rather than a simple “solar grant for everyone”.
In Scotland, there’s a clearer national route via Home Energy Scotland funding – often as part of a package.

England: Home Upgrade Grant (HUG2) – what’s the status in 2026?

HUG2 was funded for delivery from April 2023 until March 2025.

So if your article is aimed at 2026, you should update it to:

Remove “you can get up to £10,000 through HUG2 in 2026” (that’s now outdated).
Replace with: “HUG2 has closed; if you think you would have qualified, check if your local authority has a successor scheme or a live retrofit programme.”

What HUG2 used to cover (keep for context, but label it “closed”)

HUG2 supported low-income households in off-gas homes with poor EPC ratings, delivered via local authorities, and could include solar PV among other measures.

Check out our video on solar panel grants & funding:

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UK-wide: ECO4 scheme (England, Scotland, Wales) – the big one in 2026

ECO4 is the government scheme that places obligations on larger energy suppliers to fund energy efficiency improvements in eligible homes.

Ofgem states ECO4 applies to measures installed from 1 April 2022, and the government has confirmed ECO4 will now end on 31 December 2026.

What ECO4 can help with

ECO4 typically focuses on improving the least efficient homes and supporting low-income and vulnerable households.

Solar PV can be included in some cases, but it’s usually part of a broader upgrade plan (think insulation/heating + solar) rather than “solar only”.

Who may qualify (plain English)

Eligibility can come via:

Benefits-based routes (certain means-tested benefits), and/or
Local Authority Flexible Eligibility (LA Flex) routes, where councils can widen eligibility to households that are low-income or vulnerable even if they’re not on qualifying benefits (criteria vary by council).

Ofgem’s ECO pages explain the scheme and that eligibility is targeted toward households most in need.

How to apply (without wasting time)

Check eligibility through your installer or an ECO provider (many have fast screeners).
If you think you might fit LA Flex, check your council’s LA Flex statement (they publish their criteria) and apply through an ECO delivery partner.

Important: ECO is delivered through suppliers and delivery partners – the experience varies wildly. This is where “no-nonsense installers” matter.

Scotland: Home Energy Scotland Grant & Loan (2026)

If you’re in Scotland, this is often the cleanest funding route.

Home Energy Scotland offers grant funding and/or interest-free loans for measures that improve home efficiency and support renewables.

Key point to word carefully in your article: solar PV funding is often structured as part of a package (commonly paired with other measures, and sometimes alongside storage/heat upgrades depending on the programme rules at the time).

Always tell readers to confirm current package requirements with Home Energy Scotland before buying anything.

How to apply: start with Home Energy Scotland and follow their advisor-led process.

0% VAT on solar panels (UK) – this is real money

This one’s simple and very worth spelling out:

A zero VAT rate applies to installation of certain energy-saving materials from 1 May 2023 to 31 March 2027 (after that, it reverts to 5% unless rules change).
So in 2026, most homeowners getting solar installed should benefit from 0% VAT on eligible installs – which directly reduces upfront cost.

Smart Export Guarantee (SEG) – get paid for exports

The SEG isn’t a grant, but it’s ongoing “extra income” that improves payback:

Suppliers set the tariff rate and terms.
• Tariffs must always be above zero.
• You’re paid based on export meter readings (how much you send back to the grid).

“SEG doesn’t pay you for electricity you use in your home – only what you export.”

Related solar guides:

Final Thoughts on Grants Available for Solar Panel Installation in England and Scotland

Although the UK doesn’t offer one universal “solar grant” for everyone in 2026, you can still reduce costs in a few powerful ways:

If you’re eligible, ECO4 can cover a substantial chunk of home upgrades – sometimes including solar PV – and it’s now confirmed to run through 31 December 2026.
In Scotland, Home Energy Scotland funding remains a major route for grants and interest-free loans.
And for most households, 0% VAT until 31 March 2027 is the immediate, guaranteed saving that reduces the upfront bill.

Sources:

https://mcscertified.com/2023-a-record-breaking-year-for-mcs-and-small-scale-renewables/
https://www.ofgem.gov.uk/environmental-and-social-schemes/energy-company-obligation-eco/homeowners-and-tenants/faqs-domestic-consumers-and-landlords
https://www.homeenergyscotland.org/funding/grants-loans/overview/