Solar Panel Grants and Funding UK 2026

Current Government Support

While the Feed-in Tariff ended in 2019, there are still several ways to reduce the cost of solar panel installation in 2026.

1. 0% VAT on Solar Panels

The biggest saving for most homeowners.

Since April 2022, solar panels, battery storage, and heat pumps installed on residential properties qualify for 0% VAT. This represents an immediate 20% saving compared to the previous rate.

Example:

• System cost before VAT reduction: £9,600 (inc 20% VAT)
• System cost now: £8,000 (0% VAT)
• Saving: £1,600

2. ECO4 Scheme

For eligible households only.

The Energy Company Obligation (ECO4) scheme runs until March 2026 and provides funding for energy efficiency measures including solar panels.

Eligibility:

• Receiving certain benefits (Universal Credit, Pension Credit, etc.)
• Living in an energy-inefficient home (EPC D-G)
• Some LA Flex eligibility for low-income households

What you could get:

• Partial or full funding for solar PV
• Often combined with insulation measures
• Battery storage may be included

3. Smart Export Guarantee (SEG)

Get paid for excess electricity.

While not a grant, the SEG provides ongoing income from your solar investment.

Best SEG Rates 2026:

Supplier

Rate

Notes

Octopus Outgoing	15p/kWh	Variable, best overall
E.ON Next	12p/kWh	Fixed rate
British Gas	8p/kWh	Minimum floor
Octopus Flux	24p/kWh peak	Time-of-use tariff

Requirements:

• MCS-certified installation (all our installations qualify)
• Smart meter or export meter
• System under 5MW

4. Boiler Upgrade Scheme

£7,500 for heat pumps.

If you're considering solar alongside a heat pump, the Boiler Upgrade Scheme provides £7,500 towards air source heat pump installation.

Combining with solar:

• Install solar to power your heat pump
• Reduce running costs significantly
• £7,500 grant reduces heat pump cost to ~£5,000-£8,000

5. Local Authority Schemes

Check your local council.

Some Hertfordshire councils offer additional support:

Hertfordshire schemes:

• Warmth on Prescription (health-related)
• Local energy efficiency programmes
• Community energy schemes

6. Finance Options

Spread the cost interest-free.

We offer several finance options:

0% Finance (12-24 months)

• No interest
• Spread cost over 1-2 years
• Example: £8,000 system = £333/month for 24 months

Low-Rate Finance (5-10 years)

• 4.9%-7.9% APR
• Lower monthly payments
• Example: £8,000 system = £95-£150/month

What's NOT Available

Schemes that have ended:

• Feed-in Tariff (ended 2019)
• Green Homes Grant (ended 2021)
• Domestic RHI (ended 2022)

Maximising Your Return

Even without grants, solar remains an excellent investment:

1. 0% VAT saves 20% on installation cost

2. SEG income of £200-£400/year

3. Bill savings of £800-£1,200/year

4. Property value increase of 4-10%

Next Steps

Check your eligibility:

1. Contact us for a free assessment

2. We'll check ECO4 eligibility

3. Discuss finance options

4. Provide a complete cost breakdown

Our team can guide you through all available options to minimise your investment.