UK Solar Grants & Funding 2025

Going solar doesn't have to mean shouldering the full cost yourself. There are several UK government schemes and financial incentives that can reduce the cost of solar panels or generate ongoing income from your system.

Smart Export Guarantee (SEG)

The Smart Export Guarantee is the UK's main support mechanism for small-scale renewable energy. Under the SEG, energy suppliers with over 150,000 customers are required to offer a tariff that pays you for surplus electricity you export to the national grid.

To be eligible, your installation must be carried out by an MCS-certified installer and your system must have an MCS certificate. This is one reason why choosing a certified installer matters — it's the gateway to ongoing export payments.

ECO4 Scheme

The Energy Company Obligation (ECO4) is a government scheme that funds energy efficiency improvements for low-income and vulnerable households. While ECO4 primarily focuses on insulation and heating, it can include solar panels for eligible households. Eligibility is based on income, benefits received, and property EPC rating.

If you receive certain means-tested benefits or have a low EPC-rated home, it's worth checking whether you qualify for ECO4 funding.

0% VAT on Solar Panels

Since April 2022, solar panels and associated equipment (including battery storage) are exempt from VAT in the UK. This 0% VAT rate applies to both the supply and installation of solar systems, representing a significant saving on the overall cost.

Great British Insulation Scheme

While focused on insulation, the Great British Insulation Scheme sometimes works alongside solar initiatives and can be combined with other energy efficiency improvements. It's worth exploring if you're looking at a broader whole-home energy upgrade.

Local Authority Schemes

Some local authorities run their own solar and renewable energy schemes, particularly for social housing and community projects. Check with your local council for any regional initiatives in your area.

Summary

• Smart Export Guarantee — ongoing payments for surplus electricity exported to the grid
• ECO4 — potential funding for eligible low-income households
• 0% VAT — applies to all solar panel supply and installation
• Local authority schemes — varies by area