Solar Panel Grants and Funding in the UK 2026

Government Schemes Supporting Solar Panel Installations in the UK

In 2026, several government schemes and initiatives remain relevant for homeowners interested in solar panel installations. These schemes are primarily designed to support energy efficiency and reduce carbon emissions nationally. The most prominent among these is the Energy Company Obligation (ECO) scheme, which has been extended into its ECO4 phase, scheduled to run until March 2026.

Energy Company Obligation (ECO4) Scheme

The ECO4 scheme focuses on assisting households with improving energy efficiency through various measures, including renewable energy technologies such as solar photovoltaic (PV) systems. It targets low-income households and those identified as living in fuel poverty. Under ECO4, eligible households may receive funding towards the installation of solar panels, often combined with other measures like insulation or heating upgrades.

The scheme is administered via energy suppliers who have legal obligations to deliver carbon savings. Homeowners cannot apply directly to the government but must work through ECO-accredited installers or local authority energy advice services.

Other Relevant Funding and Incentives

Outside ECO4, there remain indirect financial supports that may impact solar panel adoption:

• VAT Reduction: The UK reduced VAT on domestic solar panel installations to 0% in attempts to encourage renewable energy use. This remains applicable for qualifying installations.
• Smart Export Guarantee (SEG): While not a grant, the SEG is a government-backed scheme that allows small-scale renewable energy generators to sell surplus electricity back to the grid.

No direct nationwide grants for solar panel installations have been introduced beyond ECO4 as of 2026; however, some local authorities or devolved governments may offer specific support schemes.

Eligibility Considerations for Solar Panel Funding

Eligibility for government-backed solar panel grants or funding depends on multiple criteria, including the following factors:

• Household Income and Benefits Status: Often, schemes prioritise households receiving certain means-tested benefits.
• Property Type and Tenure: Eligibility may vary depending on whether the property is owned, rented, or socially housing.
• Energy Efficiency Rating (EPC): Properties with below-average energy ratings (e.g., EPC D or below) may receive priority to encourage improving home efficiency.
• Location: Regional variations can affect availability, especially in areas with local authority initiatives.

Homeowners should note that eligibility criteria and schemes can change periodically, and up-to-date information is typically available through official UK government websites or local authority resources.

Application Process for Solar Panel Grants

Applying for funding typically involves a few distinct stages:

1. Assessment: An initial energy survey or assessment is conducted by an approved installer or surveyor to determine appropriate measures.

2. Installer Engagement: Homeowners usually must engage with ECO-accredited installers who manage the application process and ensure compliance with scheme requirements.

3. Documentation Submission: Required documents can include proof of income or benefits, property documentation, and energy performance certificates.

4. Installation and Verification: Upon approval, the installer carries out the solar panel installation, which is then verified for compliance with applicable standards.

Because the ECO scheme is supplier-led, individual homeowners do not make direct applications to the government; instead, installers apply on their behalf.

Solar Panel and System Considerations

Beyond grants and funding, a range of factors influence the practical installation of solar panels:

• System Size and Capacity: Common residential systems range in size (e.g., 2kW to 5kW), impacting energy generation potential.
• Roof Suitability: Roof orientation, shading, and structural integrity affect suitability and efficiency.
• Battery Storage: Some households may consider solar battery storage systems to increase self-consumption of generated electricity.

Government schemes generally support solar PV installations but may not specifically cover associated equipment such as batteries unless linked to wider energy efficiency improvements.

Typical Costs in United Kingdom (2026)

When considering solar panel installations in the UK, typical price ranges include:

• Basic option: Around £3,000 to £5,000 – suitable for small-scale systems (approximately 2kW) with standard panels and basic installation.

• Standard option: Approximately £5,000 to £7,500 – includes mid-sized systems (around 3.5kW to 4kW) with enhanced panel efficiency and standard mounting.

• Premium option: Typically £7,500 to £12,000 – offers larger systems (up to 5kW or more), high-efficiency panels, integrated battery storage options, and advanced monitoring.

These costs can vary significantly based on installer rates, property specifics, and the inclusion of additional components such as inverters and batteries.

Interaction with Other Energy Efficiency Measures

Solar panels are frequently installed alongside other energy efficiency improvements. Combining measures such as loft or cavity wall insulation, draught proofing, and efficient heating systems can improve overall home energy performance.

In some cases, ECO4 funding may bundle multiple measures, potentially increasing total grant value but also affecting eligibility and application complexity.

Regulatory and Certification Requirements

Solar panel installations in the UK must comply with regulations and standards, including:

• Microgeneration Certification Scheme (MCS): Installations should be carried out by MCS-certified installers to ensure quality and eligibility for certain schemes.
• Planning Permissions and Building Regulations: Most domestic solar PV installations do not require planning permission; however, listed buildings or conservation areas may have restrictions.

Proper certification affects both the safety and efficiency of installations, as well as access to incentives like the Smart Export Guarantee.

Conclusion

While direct solar panel grants in the UK have decreased compared with previous years, schemes like ECO4 and financial incentives such as VAT reduction and the SEG continue to support renewable energy uptake. Homeowners in 2026 should consider eligibility criteria carefully and consult accredited professionals to understand the options relevant to their situation. Additionally, understanding typical installation costs and regulatory requirements is essential for informed decision-making about solar panel systems.