Applying for a solar panel grant allows homeowners to receive heavily discounted or even free solar panels, resulting in significant energy bill savings. If you’re considering investing in solar energy for your home, a quick search online will reveal numerous solar panel schemes and grant options, such as ECO4, ECO Flex, Home Upgrade Grant, and more.
However, without detailed research, it can be challenging to understand what each solar energy grant offers, its advantages and disadvantages, and who is eligible to apply. That’s why we’ve created this guide to compare the main solar panel grants and schemes available in the UK.
Keep reading to learn more about each solar panel scheme and its eligibility criteria so you can find the best option for your needs.
Home Upgrade Grant
The Home Upgrade Grant is available to energy-inefficient homes in 45 select local authorities in England. Running until March 2025, this grant covers various energy efficiency measures, including solar PV panels, insulation, heat pumps and double glazing.
Home Upgrade Grant Eligibility Criteria
To be eligible for this solar panel grant, you must meet the following criteria:
● Own and live in a property within one of the 45 local authorities offering the grant. You can check your local authority’s participation by entering your postcode on the relevant government website.
● Have an Energy Performance Certificate (EPC) rating of D or below.
● Not use a gas boiler as your primary heating system.
Some local authorities may also have income-related criteria. If you’re unsure about your eligibility, contacting your local authority for clarification before applying is recommended.
ECO4
The ECO4 (Energy Company Obligation) scheme is designed to tackle fuel poverty and reduce carbon emissions by helping low-income households improve their home’s energy efficiency. With an EPC rating of D or lower, eligible households can receive up to 100% funding for solar panel installation, alongside other energy efficiency improvements such as new boilers, heat pumps and insulation.
ECO4 Eligibility Criteria
Homeowners with an EPC rating of D or lower who receive government benefits can apply for this solar energy grant until March 2026. To qualify, you must receive one of the following benefits:
● Income-based Jobseeker’s Allowance (JSA)
● Income-related Employment and Support Allowance (ESA)
● Universal Credit
● Income Support (IS)
● Child Benefit
● Housing Benefit
● Working Tax Credit
● Child Tax Credit
● Pension Credit Guarantee Credit (PCGC)
● Pension Credit Savings Credit (PCSC)
Although the scheme is primarily aimed at homeowners, tenants may also qualify with their landlord's permission.
ECO Flex
ECO Flex, also known as Local Authority Flexibility Eligibility, is an extension of the ECO4 scheme. It aims to assist individuals who don’t meet the specific eligibility requirements of ECO4, but are still living in fuel-poor households or are vulnerable to cold conditions.
ECO Flex Eligibility Criteria
To qualify for a referral through your local authority for the ECO Flex scheme, you must live in an energy-inefficient home and meet one of the following criteria:
● Have a combined gross annual income of £31,000 or below.
● Have a health condition that makes you vulnerable to cold, such as cardiovascular or respiratory diseases.
● Live in a home that is difficult to heat, typically due to poor insulation or a lack of a central heating system.
Energy suppliers can also refer you to ECO Flex if you meet specific conditions such as being in fuel debt for more than 13 weeks or repaying your energy debt through third-party deductions. Although the scheme provides funding for various energy efficiency measures, there is no guarantee that solar panels will be installed. The decision ultimately lies with the energy suppliers.
Solar Together
Solar Together is a group-buying initiative that helps communities purchase solar panels at reduced rates. The project is managed by iChoosr, a company that organises auctions for communities participating in the scheme. Once a sufficient number of people in a given area sign up, the solar panel installations are put out to tender, and the installer offering the lowest price wins the contract.
By participating in Solar Together, homeowners can save between 30-35% compared to arranging solar panel installation on their own.
Solar Together Eligibility Requirements
To join the Solar Together scheme, you must meet the following criteria:
● Live in a participating area (this can be checked on the Solar Together website).
● Own your property or have the property owner's permission.
● Pay a £150 deposit if you proceed with the installation.
0% VAT for Solar Panels
In the UK, the standard rate of VAT is 20%. However, to encourage the use of renewable energy sources, the government has introduced a reduced VAT rate for energy efficiency measures. Until April 2027, homeowners can benefit from 0% VAT on solar panels, solar batteries and other renewable energy materials.
0% VAT Eligibility Criteria
All homes in the UK are eligible for 0% VAT on solar panels. However, to qualify for the 0% rate, you must use the same provider for both the supply and installation of your solar panel system. If you choose separate providers, a 5% VAT rate will be applied.
Smart Export Guarantee (SEG)
The Smart Export Guarantee (SEG) is a government-backed scheme that allows homeowners with solar panel systems to earn money by exporting excess solar-generated electricity back into the national grid. While it doesn’t offer grants for installing solar panels, it provides a financial incentive for those already generating solar energy.
The rate you are paid for your exported solar energy varies depending on the energy supplier. For example, Octopus Energy offers 4.1p per kilowatt-hour (kWh), while British Gas offers 6.4p per kWh. Therefore, it’s worth comparing rates before choosing a supplier.
SEG Eligibility Criteria
The SEG is available to homeowners in Great Britain with solar installations that have a capacity of up to 5MW or 50kW for micro-CHP systems. Accepted technologies include:
● Solar Photovoltaic (Solar PV)
● Wind
● Hydro
● Anaerobic Digestion (AD)
● Micro Combined Heat and Power (Micro-CHP)
You’ll need a Microgeneration Certification Scheme (MCS) certificate, or an equivalent document, which was provided when your solar panel system was installed. Additionally, you must have a smart meter or export meter to track the amount of electricity you send to the grid.
Choosing A Scheme
Understanding the range of solar panel grants available in the UK is essential for making informed decisions about adopting solar energy. By familiarising yourself with each solar panel scheme and weighing up their advantages and eligibility criteria, you can choose the one that best suits your circumstances. This allows you to reduce your carbon footprint and enjoy long-term savings on your energy bills.
Whether you qualify for full funding through the ECO4 or ECO Flex scheme, lower-cost installations via Solar Together or benefit from ongoing savings with the Smart Export Guarantee. With government support continuing until at least 2027, now is an ideal time to explore your eligibility and make the switch to solar energy.
At North East Insulation Services
At North East Insulation Services, we are committed to promoting sustainable energy solutions. As experienced green energy installers, our services include a wide range of energy-efficiency upgrades, from heating systems and insulation to comprehensive solar panel supply and installation. We also offer tailored solutions for cavity walls and loft insulation.
We proudly support the ECO4 and ECO Flex schemes, ensuring that homeowners can access affordable renewable energy options through solar energy grants, making the transition to solar power both cost-effective and accessible, while also helping to reduce carbon emissions and energy costs.
Get in touch with North East Insulation Services today to discuss your suitability for one of our solar panel grants or energy-efficiency upgrades.
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