UK Solar Grants & Incentives (2025/2026 Update)

While the famous "Feed-in Tariff" closed years ago, the UK government currently offers arguably better upfront support through tax cuts and energy company obligations.

The 0% VAT Incentive

Status: Active until April 1, 2027

The biggest incentive right now is the complete removal of VAT (Value Added Tax) on the installation of energy-saving materials. This saves you 20% on the total cost of:

Solar Panels
Battery Storage
Inverters & Mounting
Labor Costs

For a typical £8,000 system, this is an instant saving of £1,600 compared to pre-2022 prices.

Smart Export Guarantee (SEG)

Status: Active (Mandatory for large suppliers)

Energy suppliers with over 150,000 customers must offer a tariff to pay you for the electricity you export to the grid.

How it works You need a smart meter. It measures every kWh you send back to the grid automatically.

Rates (Shop Around!) Rates vary wildly. Some offer a pitiful 3p/kWh, while others (like Octopus or Scottish Power) offer up to 15p-29p/kWh.

The "Intelligent" Choice Smart tariffs allow you to sell high (at peak times) and buy low (at night), turning your battery into a profit center.

ECO4 Grant Scheme

Status: Active (Means-tested)

The Energy Company Obligation (ECO4) helps low-income households improve efficiency. If you claim certain benefits and your home has a low EPC rating (D, E, F, or G), you might get solar panels for FREE.

This is not a cash handout but a full installation arranged by energy suppliers. Check your eligibility with your current electricity provider.

Are There Local Council Grants?

Occasionally, local authorities run "Solar Together" group-buying schemes. These aren't grants, but they use collective bargaining power to secure a discount of 10-25% on installation costs.

Check Solar Together UK →