UK Solar Grants & Incentives 2026
There's a lot of "free solar panels" clickbait about. Here's the honest position for 2026: everyone gets 0% VAT and can earn from exporting power, but genuinely free or fully-funded solar is limited to low-income and fuel-poor households through specific schemes. This guide covers every route, who qualifies, and how to claim.
Incentives available to everyone
0% VAT on solar & batteries (until March 2027)
Domestic solar panel and battery installations are zero-rated for VAT in Great Britain until 31 March 2027. On a typical £6,000–£8,000 system that's roughly £1,200–£1,600 off. The relief applies to supply-and-install work by a VAT-registered installer, and since 2024 it also covers standalone battery storage retrofits.
DIY note: the zero rate is designed around installer contracts. If you buy panels at retail and self-install, the hardware is usually standard-rated. But if a VAT-registered contractor installs materials for you, the 0% rate can apply to that work — worth asking your electrician.
Smart Export Guarantee (SEG)
The SEG obliges every large energy supplier (150,000+ customers) to pay you for electricity you export to the grid from an MCS-certified system. Rates in 2026 range from about 11p to 32p per kWh depending on supplier — so shopping around matters. A 4kW system exporting roughly half its output might earn £150–£400 a year.
You'll need MCS certification and a smart meter. Octopus Energy runs some of the most competitive export tariffs and pairs well with a battery on a time-of-use plan. Switch to Octopus and get £50 credit →
Targeted grants (means-tested)
ECO4 (Energy Company Obligation)
ECO4, extended to 31 December 2026, obliges large energy suppliers to fund efficiency measures — including solar — for low-income and vulnerable households. It typically targets homes heated by electricity (or a heat pump) with a lower EPC rating and a resident on qualifying benefits. Because it's a "last chance" scheme ending in December 2026, eligible households should apply early.
Warm Homes: Local Grant
Delivered through local councils in England, the Warm Homes: Local Grant funds solar and other measures for lower-income owner-occupiers — broadly households with income of £36,000 or less and a property EPC of D to G. Scotland and Wales run their own equivalents (e.g. Warmer Homes Scotland, Nest in Wales).
The Warm Homes Plan
Published on 20 January 2026, the Warm Homes Plan is a £15 billion programme to upgrade up to 5 million homes by 2030 — described as the biggest home-upgrade programme in British history. It consolidates and expands existing schemes, so grant availability is expected to widen over 2026–27. Check GOV.UK and your local council for the latest eligibility as new funding rounds open.
Quick eligibility summary
| Scheme | Who it's for | Benefit | Deadline |
|---|---|---|---|
| 0% VAT | All GB homeowners | ~£1,200–1,600 saved | 31 Mar 2027 |
| Smart Export Guarantee | Any MCS install + smart meter | 11–32p/kWh exported | Ongoing |
| ECO4 | Low income / benefits, low EPC | Funded install | 31 Dec 2026 |
| Warm Homes: Local Grant | Income ≤ £36k, EPC D–G | Funded install | Rolling (council-led) |
| Warm Homes Plan | Widening from 2026 | Varies | To 2030 |
Figures and thresholds change — always confirm current details on GOV.UK, Ofgem, or with your local council before relying on them.
DIY installers: staying eligible
The catch for DIYers is that SEG and grant funding require MCS certification, and a pure self-install isn't MCS-certified. The standard workaround: do the physical work yourself, then pay an MCS-registered electrician to design, inspect, certify and sign off the system. You keep most of the labour saving and stay eligible for export payments. See our installation guide for how this fits into the build.
See your payback with SEG included
Our calculator factors in your export rate and self-consumption to estimate real savings.
Open the solar calculator →Frequently asked questions
Can I still get free solar panels in the UK in 2026?
Only through targeted schemes for low-income or fuel-poor households. ECO4 (to 31 Dec 2026) can fund solar for eligible benefit claimants in electrically heated homes, and the Warm Homes: Local Grant covers households with income of £36,000 or less and an EPC of D–G. There's no universal free-solar scheme.
Do I pay VAT on solar panels in 2026?
No — domestic solar and battery installations are zero-rated (0% VAT) in Great Britain until 31 March 2027. On a typical £6,000–£8,000 system that saves roughly £1,200–£1,600. It applies to supply-and-install work by a VAT-registered installer.
Can I claim 0% VAT if I install solar myself?
The relief is built around a supply-and-install contract, so buying panels alone at retail doesn't automatically get 0% VAT. If a VAT-registered contractor installs materials for you, the zero rate can apply to that installation work. Pure DIY buyers usually pay standard-rated retail prices on the hardware.
How much can I earn from the Smart Export Guarantee?
SEG rates in 2026 range from about 11p to 32p per kWh depending on supplier. A typical 4kW system exporting around half its generation might earn £150–£400 a year. You need an MCS-certified install and a smart meter.
Do I need MCS certification for grants and SEG?
Yes — SEG and grant-funded installs require MCS-certified equipment and installation. A pure DIY install isn't MCS-certified, but you can pay an MCS-registered electrician to design, sign off and certify the system so you stay eligible.