Solar panels have become a popular way for UK homeowners to save on energy bills and cut carbon emissions.
With installation costs continuing to fall, a range of solar panel grants can make the switch even more affordable.
From national funding schemes to local group-buying initiatives, there are several options available in 2025 for solar panels. This guide explains what support is out there, who is eligible and how to apply.
Why consider solar panels grants now?
More than 1.5 million UK homes now have solar panels installed as of March 2025, according to government data.
That’s 5.3% of all households, and the number is rising fast – more systems were installed across 2023 and 2024 than in the previous six years combined.
This rapid growth shows how appealing solar-generated electricity has become, especially with high energy prices and growing climate concerns. And with the right solar panel grants, it can be more affordable than you think.
What solar panels grants are available in 2025?
Solar panel grants can help cushion the initial investment when installing this renewable technology(Image credit: Getty Images)
Here’s a breakdown of the current funding and support schemes available to UK homeowners:
1. ECO4 Scheme (Energy Company Obligation)
ECO4 is a government-backed grant offers partial or full funding for solar PV systems for low-income and vulnerable households. Running until March 2026, it targets homes with EPC ratings below D.
You may qualify if you receive:
Pension Credit
Universal Credit
Income Support
Housing Benefit
Typical savings under this scheme range from £500 to £1,500 per household, according to John Burchill from East Riding Energy.
To apply, contact your local authority or check the government’s energy efficiency webpage.
2. LA Flex (Local Authority Flexibility Scheme)
Even if you're not on benefits, you might still qualify. LA Flex gives councils the power to assess low-income households (earning under £30,000) based on other factors like household size and health conditions.
3. Smart Export Guarantee
The Smart Export Guarantee requires energy suppliers to pay you for any unused electricity your solar PV system exports to the grid.
This includes systems up to 5MW but you must have an export meter (not all meters are compatible - check with your supplier)
“If you’re on the right tariff, you can export electricity for around 15p per kWh,” says energy expert David Hilton. “Gas is about 9p, so you could technically sell your electricity and buy gas cheaper.”
That said, most homeowners still benefit more by using the solar power they generate rather than exporting it.
David Hilton
With more than 35 years of expertise, David is a seasoned renewables and ventilation installer, recognised for his longstanding contributions to Homebuilding and Renovating magazine. Holding membership in the Gas Safe Register and armed with a Masters degree in Sustainable Architecture, David stands as an authoritative figure in sustainable building and energy efficiency. His extensive knowledge spans building fabrics, heat recovery ventilation, renewables, and conventional heating systems. Additionally, he serves as a distinguished speaker at the Homebuilding & Renovating Show.
4. 0% VAT on solar panels
From April 2022 to 2027, there's zero VAT on materials and installation for solar panels and other energy-saving home improvements. This can save homeowners between £250–£400 on the cost of solar panels.
5. Solar Together Scheme
Now live in areas like the West Midlands and this scheme allows homeowners to collectively buy solar panels and battery storage at reduced rates.
Councillor Andy Mackiewicz from Solihull Council, one of the areas the scheme is available, says: “Having your own solar panels and battery storage could help you generate your own clean electricity, save money on your energy bills, and reduce your carbon footprint.”
The scheme is run by iChoosr in partnership with local councils and offers:
Competitive pricing via reverse auctions
Pre-vetted, MCS-certified installers
Optional battery storage and EV charge points
The Boiler Upgrade Scheme was designed to replace the Renewable Heat Incentive, which did help pay for solar panels, but this doesn't cover solar panels.
Can you still get free solar panels?
While the cost of solar panels might be high, they will save households money over their 25-40 year lifespan(Image credit: Getty Images)
While "free" solar panels were once possible through the now-defunct Feed-in Tariff (FiT), these schemes have ended.
Some companies offered free panels in exchange for claiming the FiT, but this model is no longer active.
“I think the day of incentives is gone,” says David Hilton. “We’re moving into a space where the focus is on generating and exporting energy – not handouts.”
Are solar panels still worth it without a grant?
The short answer is yes - especially when combined with battery storage. Even without a grant, today’s prices are far more affordable:
Solar PV: Now around £5,000–£8,000, down from £12,000+ in 2010 and dropped 73% since 2015
Solar thermal: Between £4,000–£7,000, depending on system size
Add to that energy savings of up to £700 per year, and panels often pay for themselves within 6–10 years.
“You're always going to use electricity,” Hilton adds. “So yes, they’re always going to be worth it – unless you live in a thatched cottage or have heritage tiles that can’t accommodate the install.”
Make sure you're eligible – especially for local or ECO4 schemes.
Ensure you own your property – lease agreements can complicate things.
Check if your export meter supports SEG.
Get quotes from MCS-certified installers.
Don’t choose solar instead of insulation – they work best together, according to David Hilton.
With energy bills still high and solar technology more accessible than ever, there’s never been a better time to explore solar panels grants.
Whether you're eligible for national schemes like ECO4, taking part in group-buying initiatives like Solar Together, or simply taking advantage of 0% VAT, 2025 is shaping up to be a big year for clean, homegrown energy.
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Amy is an interiors and renovation journalist. She is the former Assistant Editor of Homebuilding & Renovating, where she worked between 2018 and 2023. She has also been an editor for Independent Advisor, where she looked after homes content, including topics such as solar panels.
She has an interest in sustainable building methods and always has her eye on the latest design ideas. Amy has also interviewed countless self builders, renovators and extenders about their experiences.
She has renovated a mid-century home, together with her partner, on a DIY basis, undertaking tasks from fitting a kitchen to laying flooring. She is currently embarking on an energy-efficient overhaul of a 1800s cottage in Somerset.
