✅ Grants include the ECO4 and the Home Upgrade Grant
✅ There’s a community-led solar panel group-buying scheme available
✅ Solar Together can cut the upfront cost of buying a solar panel system
Solar panels cost around £7,000 on average, but this can go up to £11,000 or thereabouts depending on your needs. That’s a lot of money to spend in the midst of a cost-of-living crisis in which people are having to be more conscious of where their money is going. Solar panels, though, can be great tools in shrinking your monthly energy bill by up to 70%, so if you can’t quite afford the upfront cost, you might be wondering if there’s any help available. We’re here to tell you there is, and this article is designed to give you all the information you’ll need to know about the grants currently offered by the UK government. If you’re ready to outright buy a solar panel system, we can help you compare prices. Just enter a few details about your home and we’ll connect you with our trusted installers. They’ll get in touch with obligation-free quotes for you to compare.
The UK government offers three grants to help homeowners buy solar panels. These are:
ECO4 — this scheme offers funding for low-income and fuel-poor households, or homes with occupants on certain benefits
ECO4 Flex — this is part of the ECO4 scheme and it is designed to extend eligibility to households referred to the scheme by local authorities, or an energy supplier
The Home Upgrade Grant — homes that aren’t connected to the gas grid can receive funding of up to £10,000 towards solar panels, and other home improvements
Two other initiatives that are well worth mentioning are:
Solar Together — this is a group-buying initiative that allows communities to buy solar panels for their households at a reduce price
VAT Exemption — UK homeowners pay 0% VAT on solar panels and other energy-saving materials/technologies until April 2027. It used to be 5-20%.
All of these grants have different eligibility criteria, which we’ll explain in more detail below. Also, be aware that the benefits they provide can be different, and how you apply for them can be tricky.
ECO4 is the fourth and final iteration of the UK government‘s Energy Company Obligation scheme. It was created to help households who are fuel poor, and to reduce carbon emissions. With ECO4, households could save up to 100% of the cost of solar panels.
The scheme requires most gas and electricity suppliers to help provide homes with energy saving measures, including solar panels. It’s administered by Ofgem, and also helps cover boiler repairs, heat pump installation, and improved insulation.
There isn’t a cap on how much funding ECO4 can provide you, as it’s depending on your home’s unique needs. However, the funding (and any retrofit projects) does depend on your energy company.The government's ECO4 scheme will be around until the 31st of March 2026.
