The Energy Saving Trust says there's currently no general government grant just for solar panels. But there are four things that can lower the cost or pay you back. Here they are.
1. Warm Homes: Local Grant (council-run)
The Warm Homes: Local Grant funds energy improvements, which can include solar panels, for eligible homes in England. The council arranges and pays for the work. Broadly, you may qualify if your home is privately owned (by you or a private landlord), has an EPC rating of D to G, and your household income is £36,000 or less, you get certain means-tested benefits, or you live in an eligible postcode.
A Shropshire-led consortium including Telford & Wrekin received funding for the scheme. How to apply locally:
- Telford & Wrekin (Telford, Wellington, Newport, Madeley, Oakengates, Ironbridge): through Telford Energy Advice.
- Shropshire Council (Shifnal, Bridgnorth, Shrewsbury): through the Sustainable Warmth Shropshire programme. Shropshire says homes need to be in council tax bands A to D, below EPC C, and that a survey decides which measures are recommended, so solar isn't guaranteed.
Funding is limited and some councils have already said they're oversubscribed for 2026/27, so contact them early.
2. ECO4 (until 31 December 2026)
The Energy Company Obligation is run through energy suppliers and overseen by Ofgem. The government has extended ECO4 to 31 December 2026. Solar panels are only funded under ECO4 alongside a heat pump or other qualifying electric heating system. The Great British Insulation Scheme closed on 31 March 2026.
3. Warm Homes Loan Scheme
The Warm Homes Plan includes low or zero-interest loans for home energy improvements, with a consumer launch indicated from September 2026. Under the published scheme rules, loans for solar panels are capped at £15,000. As of October 2026, we haven't seen lenders or rates confirmed publicly, so check GOV.UK for the latest before relying on it.
4. 0% VAT until 31 March 2027
HMRC VAT Notice 708/6 zero-rates solar panels and batteries installed in homes, including batteries added later, from 1 May 2023 to 31 March 2027. From 1 April 2027 it's due to become 5%. Your quote should show VAT at 0%.
Getting paid for exports: the Smart Export Guarantee (SEG)
Under the Smart Export Guarantee, larger electricity suppliers must offer a tariff that pays you for electricity you export. Rates and terms are set by each supplier; Ofgem keeps a list of SEG suppliers. The Energy Saving Trust quotes around 12p per unit as typical. You'll normally need an MCS-certified installation and a smart or export meter.
Watch out for "free solar" cold calls. Real schemes are run through councils, energy suppliers and official GOV.UK services. If someone calls or knocks offering free panels, don't give personal or bank details; contact your council or the scheme directly to check.
Funding questions
Can I get free solar panels?
Does the Smart Export Guarantee pay a fixed rate?
Is ECO4 still running?
Sources
- Energy Saving Trust: Solar panels (fuel prices July 2026; checked 25 Oct 2026)
- GOV.UK: Apply for the Warm Homes: Local Grant (checked 25 Oct 2026)
- Telford & Wrekin Council: Affordable warmth / Telford Energy Advice (checked 25 Oct 2026)
- Shropshire Council: Sustainable Warmth Shropshire (checked 25 Oct 2026)
- GOV.UK: Extending the ECO4 end date, government response (checked 25 Oct 2026)
- Ofgem: Energy Company Obligation (ECO) (checked 25 Oct 2026)
- Ofgem: Great British Insulation Scheme (checked 25 Oct 2026)
- GOV.UK: Warm Homes Plan (checked 25 Oct 2026)
- DESNZ: Warm Homes Loan Scheme rules (Sept 2026) (checked 25 Oct 2026)
- HMRC VAT Notice 708/6: energy-saving materials (checked 25 Oct 2026)
- Ofgem: Smart Export Guarantee for generators (checked 25 Oct 2026)
- Ofgem: SEG supplier list (checked 25 Oct 2026)
Figures change. We review this page regularly; if you spot something out of date, tell us through the form.