Solar Grants and Government Incentives: What's Actually Available
A clear rundown of the grants, schemes and tax reliefs available for solar panels, batteries and heat pumps in the UK — and who qualifies for each.
Key takeaways
- There is no single universal 'solar grant' — support comes from several separate schemes.
- 0% VAT on qualifying installations applies to most residential customers automatically.
- The Smart Export Guarantee obliges larger suppliers to pay you for exported power.
- Income- and property-based schemes such as ECO4 have strict eligibility criteria.
0% VAT on energy-saving materials
Qualifying residential installations of solar panels, batteries and heat pumps attract zero-rated VAT. You do not apply for it — a compliant installer simply prices without VAT. If a quote shows 20% VAT on a standard domestic solar install, ask why.
Smart Export Guarantee (SEG)
SEG requires larger energy suppliers to pay for electricity you export to the grid. Rates differ substantially between suppliers, and you are free to take your export tariff from a different supplier than your import one. Requirements: an MCS-certified installation and an export-capable smart meter.
Means-tested and property-based schemes
Schemes aimed at fuel poverty and poorly insulated homes can fund a large share — occasionally all — of an installation. Eligibility usually turns on a combination of household income or qualifying benefits, EPC rating, and property type. Local authority-run schemes vary by postcode, so it is worth checking your council alongside national programmes.
- Household receiving qualifying benefits, or low income relative to thresholds.
- Property with a low EPC rating (commonly D–G).
- Owner-occupied or landlord consent in place for rented homes.
Heat pump support
Heat pumps have their own upfront grant route separate from solar, typically applied for by the installer and deducted from your quote. Because a heat pump raises electricity demand, pairing it with solar and a battery changes the payback picture for both technologies — model them together, not separately.
How to check what you qualify for
Scheme rules and funding pots change frequently. Before signing anything, confirm current eligibility with the scheme administrator or your installer, and never pay an upfront fee to a company that offers to 'secure' a grant for you.
Frequently asked questions
Are free solar panels real?
Fully funded installations exist only under specific means-tested schemes. Outside those, 'free solar' usually means a rent-a-roof arrangement where a third party keeps the generation benefits.
Can landlords access solar funding?
Some schemes include private rented properties, often with a landlord contribution and minimum EPC obligations. Rules differ by nation and scheme.