Solar Panel Grants UK 2026: Funding & 0% VAT
You can cut the cost of solar through 0% VAT (until March 2027), the Warm Homes Plan 0% loans, the Warm Homes: Local Grant for lower-income homes, and ongoing earnings from the Smart Export Guarantee. Check what you qualify for and get free quotes below.
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0% VAT on solar & batteries
All residential solar panels and batteries are charged at 0% VAT until March 2027 — an immediate 20% saving on components and labour, available to every homeowner regardless of income.
Warm Homes Plan (0% loans)
The government’s £13.2bn Warm Homes Plan is introducing 0% interest loans for solar panels and batteries for all UK homeowners. It is rolling out and not expected to be fully operational until 2027.
Warm Homes: Local Grant
For lower-income households, councils can offer up to £15,000 of energy upgrades — which can include solar panels and batteries. A combined household income under roughly £31,000–£36,000 is the usual threshold.
Smart Export Guarantee (SEG)
The SEG pays you for surplus electricity you export to the grid, helping your panels pay for themselves faster. Note: the older ECO4 free-solar route closed on 31 March 2026.
FAQs
Are there still free solar panel grants?
The ECO4 free-solar route closed in March 2026. Most homeowners now save via 0% VAT, 0% Warm Homes loans, and the SEG; lower-income homes may get a Warm Homes: Local Grant.
How much can I save with 0% VAT?
20% versus standard-rated work, on both the equipment and installation, until March 2027.