The Smart Export Guarantee (SEG)
The Smart Export Guarantee is not a grant — it is an ongoing income stream. Under the SEG, energy suppliers with more than 150,000 customers are legally required to offer a tariff for electricity exported to the grid from small-scale renewable installations, including solar PV.
SEG rates vary by supplier and tariff type: fixed rates typically range from 4p–7p per kWh; agile or variable tariffs can reach 15p+ at times of high grid demand. For a 4 kW system, SEG income of £60–£150 per year is typical depending on how much surplus you export.
To qualify for SEG, your installation must be MCS-certified and your inverter must have an export meter or half-hourly smart meter capability. Register directly with your chosen energy supplier once the installation is complete.
ECO4 — for households on qualifying benefits
The Energy Company Obligation (ECO4) scheme funds energy efficiency improvements — including solar panels — for households in receipt of certain means-tested benefits. Qualifying benefits include Universal Credit, Pension Credit, Child Tax Credit, and several others.
Under ECO4, the cost of solar installation can be fully or partially funded through the scheme, delivered by energy suppliers who are obliged to meet annual targets. Eligibility and available measures depend on the property's Energy Performance Certificate (EPC) rating and household income.
Apply through your energy supplier, local council, or a government-approved ECO4 installer. Check eligibility at gov.uk — the scheme is not universally available and the funding pot is finite each year.
The Great British Insulation Scheme
The Great British Insulation Scheme (formerly ECO+) provides funding for single insulation measures for households with an EPC rating of D or below, regardless of benefits status (though means-tested households get priority). Solar panels are not directly funded under this scheme, but improving your EPC rating through insulation can strengthen a future ECO4 application.
The schemes are frequently conflated in advertising — solar installation companies sometimes market as "government grant available" when they mean a potential ECO4 referral, not a universal entitlement. Always confirm the specific scheme and eligibility criteria before proceeding.
VAT relief on solar installations
Since April 2022, solar panel installations for residential use in the UK attract 0% VAT (reduced from 5%). This is not a grant but a permanent tax relief that reduces the upfront cost of a typical domestic installation by around £600–£900 compared to before the change.
The 0% rate applies to supply and installation of solar panels, associated equipment including inverters and battery storage, and the labour involved. It does not apply to standalone consultancy or survey fees.
Local authority and devolved government schemes
Scotland: Home Energy Scotland offers interest-free loans of up to £15,000 for solar plus battery storage, administered by Energy Saving Trust on behalf of the Scottish Government. This is a genuine, well-established programme worth investigating for Scottish homeowners.
Wales: The Warm Homes Programme and local authority Nest scheme provide energy efficiency funding including solar for eligible households. Check with your local authority and gov.wales for current availability.
England: Some local authorities run area-based grant programmes under the Warm Homes Local Grant, which launched in late 2025. Availability is postcode-dependent and schemes open and close throughout the year. Check gov.uk/warm-homes-local-grant for current information.