If you’ve been putting off going solar because of the upfront cost, you may be missing out on long-term savings. The UK government, and the energy companies obliged to act on its behalf, currently have several schemes, designed to help homeowners like you reduce the upfront cost of a solar installation, particularly for eligible low-income households.
In this guide, we’ll explain every current grant, incentive and scheme available to UK homeowners in simple terms, including what you can claim, whether you qualify and how to take the next step.
(Note: Government schemes and eligibility criteria can change, so it’s important to check official sources such as gov.uk for the latest information.)
What Government Support Is Available for Solar Panels in 2026?
Let’s start with a clear overview of the main schemes currently open to homeowners:
- The Warm Homes Plan: up to £30,000 for low-income households (plus interest-free loans for everyone else expected no earlier than 2027)
- 0% VAT on solar panels: A zero-rate of VAT on the installation of energy-saving materials, including solar panels (until 31 March 2027)
- Smart Export Guarantee (SEG): earn money every time your panels send electricity back to the grid
- Local Authority & Regional Grants: additional support depending on where you live
Each scheme works differently; some target low-income households, and others are open to any homeowner. Some you pay upfront, and others pay you back over time. Here’s a detailed breakdown of each.
The Warm Homes Plan
Launched by the UK government in January 2026, the Warm Homes Plan is the biggest public investment in home energy upgrades in British history, backed by £15 billion of funding with the aim of upgrading five million homes by 2030.
For solar-panel purposes, it has two important components:
1. Fully Funded Packages for Low-Income Households
Households that are low-income or fuel-poor can receive fully funded solar installations, batteries, insulation and other energy improvements under the plan’s funded packages. The Warm Homes: Local Grant, which is part of this initiative, is available to households in England earning under £36,000 a year (or those on qualifying benefits), and can contribute up to around £30,000 toward a package of energy efficiency upgrades, which may include solar panels alongside insulation and heating improvements for eligible homes in England.
2. Interest-Free and Low-Interest Loans (from April 2027)
For homeowners who don’t meet the low-income threshold, the government is expected to launch a consumer loan scheme no earlier than 2027, offering 0% or low-interest financing to install solar panels, battery storage, heat pumps and home insulation. This means that in the near future, more homeowners will be able to spread the cost of going solar across several years at no extra interest cost.
Who is eligible for the Warm Homes Plan funded packages?
Full eligibility criteria are still being finalised by the government. Broad details are expected to be published through mid-2026. Low-income households and those with poor EPC ratings (D or below) are likely to be prioritised. Check gov.uk and speak to your local authority as further details emerge.
0% VAT on Solar Panels and Batteries
This is the one incentive that applies to virtually every homeowner in the UK right now, regardless of income. The government has set the VAT rate on solar panels, solar battery storage systems, and other qualifying energy-saving materials to 0%, and that rate is confirmed until 31 March 2027.
What qualifies:
- Solar PV panels
- Solar battery storage systems (including standalone batteries, since February 2024)
- Heat pumps and certain other energy-saving materials
- Installation costs when supplied together with the qualifying product
The 0% VAT applies to installations in residential properties across the UK. You don’t need to apply for anything; a legitimate, MCS-certified installer, like Wired by Jessops, will automatically apply the 0% rate to your invoice.
The Smart Export Guarantee (SEG)
The Smart Export Guarantee is a government-backed scheme that pays you an ongoing income for the excess electricity your solar panels generate. It launched in January 2020, replacing the old Feed-in Tariff, and it runs indefinitely.
When your solar panels produce more electricity than your home is currently using, that surplus flows back into the national grid. Under the SEG, your energy supplier must pay you for every unit (kWh) you export. You sign up to a tariff with an SEG licensee, which can be a different supplier from the one you buy your electricity from, and get paid monthly or quarterly.
How Much Can You Earn?
Rates vary considerably between suppliers. As of early 2026, the leading export tariffs vary widely, with rates typically ranging from around 1p to over 20p per kWh depending on which supplier you choose and their terms.
Between April 2024 and March 2025, energy suppliers paid out nearly £57 million to SEG participants, an 86% increase on the previous year. The average household earned around £210 in export payments that year.
SEG Eligibility
- Your solar panel system must be installed by an MCS-certified installer.
- You must have a smart meter capable of half-hourly export readings (a SMETS2 meter).
- Your system must be under 5 MW capacity (all domestic systems easily qualify).
Because MCS certification is a requirement for SEG, it’s one more reason to always use a certified installer like Wired by Jessops; you’ll have the paperwork you need to sign up and start earning straight away.
Local Authority and Regional Grants
Beyond the national schemes, a number of local councils and regional authorities offer their own grants, interest-free loans, or financial assistance for renewable energy installations. These vary widely by location and can change regularly as funding is allocated and spent.
The best way to check what’s available in your area is to contact your local council directly or visit the government’s Clean Energy Campaign website for an up-to-date directory of local initiatives.
Am I Eligible? A Quick Checklist
Eligibility across all these schemes isn’t always black and white, but here are the common indicators that you might qualify for funded or subsidised support:
- Your home has an EPC rating of D, E, F, or G.
- You or someone in your household receives qualifying benefits (e.g., Universal Credit, Pension Credit, Child Tax Credit, or similar income-related benefits)
- You have a household income below a certain threshold.
- A member of your household has a long-term health condition that is made worse by living in a cold home.
- You live in social housing managed by a local authority or housing association.
If none of these apply, you can still benefit from the 0% VAT saving and the Smart Export Guarantee earnings.
How to Apply: Step-by-Step
- Check your eligibility: Start with the Ofgem and gov.uk websites, and speak to your local council about any regional schemes.
- Get your EPC: If you don’t have a current Energy Performance Certificate, get one. It’s required by most schemes and will confirm your home’s energy efficiency rating.
- Find a certified installer: For any scheme (and for the SEG), your installer must be MCS certified. This ensures your system qualifies and your documentation is in order.
- Apply through the appropriate channel: For funded schemes, your installer often handles the application on your behalf. For the SEG, you register directly with your chosen energy supplier.
- Keep all documentation: Hold onto your MCS certificate, installation invoice and grant approval letters. You’ll need these for ongoing compliance and for registering with SEG tariffs.
Is Solar Still Worth It Without a Grant?
Even without a direct grant, a well-designed solar installation in the UK typically pays for itself in savings within 7–12 years. When you factor in the 0% VAT saving, the Smart Export Guarantee income, and the fact that solar panels can reduce your electricity bills by up to £900 or more per year for an average home, the case stacks up well.
Add battery storage into the mix and the savings increase further. Rather than exporting cheap electricity during the day and buying expensive electricity back in the evening, a battery lets you store what you generate and use it when it costs the most, significantly improving your system’s financial return.
For Cornwall specifically, we see excellent solar yields thanks to the county’s above-average sunshine hours compared to the rest of the UK. That means higher generation, better savings and stronger returns on investment.
Solar Grants FAQs
Are there any solar panel grants available in the UK right now?
Yes, though the specific grants available depend on your circumstances. The Warm Homes: Local Grant offers up to £30,000 for eligible low-income households in England. All homeowners benefit from 0% VAT on installations, and the Smart Export Guarantee pays you for surplus energy exported to the grid. The broader Warm Homes Plan will also introduce interest-free loans for all homeowners no earlier than April 2027.
Can I get free solar panels in the UK?
Fully funded solar installations may be available to eligible low-income households through the Warm Homes Plan’s funded packages. Eligibility criteria are still being confirmed, but households with a low EPC rating or those receiving qualifying benefits are most likely to qualify. For other homeowners, significant financial support is still available through VAT relief, SEG income and upcoming interest-free loans.
What is the Smart Export Guarantee, and how much can I earn?
The Smart Export Guarantee is a government scheme that requires large energy suppliers to pay you for surplus solar electricity you export to the grid. As of early 2026, SEG export rates vary widely, typically ranging from around 1p to over 20p per kWh. A typical 4kW system might earn you between £80 and £250 per year in export payments, on top of your electricity bill savings.
Does the 0% VAT saving apply automatically?
Yes. When you use a legitimate MCS-certified installer for your solar panel installation, they will automatically apply the 0% VAT rate to your invoice. You don’t need to apply for it separately. This rate currently applies until 31 March 2027.
Do I need to use a certified installer to access these schemes?
Yes, MCS certification is a requirement for the Smart Export Guarantee and for most funded grant schemes. Always check that your installer holds current MCS certification before proceeding. Wired by Jessops is fully MCS certified and can supply the documentation you need for all applicable incentives.
Ready to Find Out What You Could Claim?
Navigating the grant landscape is genuinely complex; schemes change and eligibility rules vary by region. The most reliable way to know exactly what you can claim for your specific home is to get a proper assessment from a certified local installer who knows the current schemes inside out.
At Wired by Jessops, Joe personally visits every customer across Cornwall and parts of Devon. As an MCS-certified and Tesla-approved installer and Octopus trusted partner, every installation comes with the certifications you need to claim your SEG payments and access available funding from day one.
Book your free personal site visit today and take the first step towards energy independence for your home.
