- Government grants include ECO4 and the Home Upgrade Grant
- Solar Together and the Smart Export Guarantee can reduce your costs
With over 1.3 million buildings in the UK already equipped with solar panels, a number continually on the rise, seizing the current environmental advantages is beneficial. The cost of solar panels has decreased by 82% since 2010, presenting an opportune moment. Additionally, solar panels enjoy a 0% VAT rate, and the Smart Export Guarantee (SEG) compensates you for surplus energy generation.
This guide explores the SEG and existing government grants for both new and existing solar panel installations, providing insights to optimize savings amid current cost-of-living challenges. If you’re curious about the potential cost of a solar panel set, we streamline the comparison process. Just provide a few details, and our experienced installers will furnish you with customized quotes tailored to your solar panel needs.
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Are there government grants for solar panels?
There are two grants that may help you buy solar panels for your home: the Energy Company Obligation scheme (ECO4) and the Home Upgrade Grant.
ECO4 offers an opportunity to obtain funding of up to £14,000 for eligible energy-saving home projects. Furthermore, the Home Upgrade Grant, accessible in 45 English local authorities spanning from Dorset to Newcastle via the Isle of Wight, has the potential to provide grants of up to £10,000 for eco-friendly measures, including the installation of solar panels. Additional insights on alternative approaches to acquiring solar panels without a significant budget impact are provided below. For further details on these grants, please proceed with reading.
ECO4
If your home’s heating is powered by electricity — for instance, with an air source heat pump or electric boiler — you may be able to get solar panels through the ECO4 scheme.
ECO4 eligibility requirements
If you reside in England, Scotland, or Wales and meet any of the following conditions, you can participate in the government-funded initiative, active from July 2022 to March 2026:
- Your household income is below £31,000 per year.
- You’ve been recommended by your energy provider, local authority, or doctor.
- You are a recipient of specific benefits.
To be eligible for solar panels through this scheme, your home must attain a specific level of insulation, potentially making you eligible for insulation services as well.
Potential savings with ECO4
ECO4 has the capability to entirely fund your new solar panels, especially if they are designed for heating systems. This means an average three-bedroom household could potentially realize savings of £7,860 through this initiative. It’s essential to be aware that if your intention is to utilize the solar panels for purposes other than heating, such as powering lighting, televisions, or computers, it might not align with the eligibility criteria of the program.
How to apply for ECO4
To commence the application procedure, get in touch with one of the energy suppliers tasked with executing ECO4 enhancements, as enumerated below.
It’s not mandatory to contact your current supplier. Opt for the company that best suits your preferences, and feel free to approach multiple suppliers to meet your home improvement requirements.
Upon reaching out, you will undergo a telephone assessment, covering questions about your income, benefits received, and your property’s energy efficiency rating.
Subsequently, the company will arrange a home visit to verify its eligibility for the grant.
If you want to check beforehand that you’re eligible, you can complete this Ofgem questionnaire.
The list of energy suppliers that must provide ECO4 measures currently includes:
- British Gas
- E
- E.ON
- Ecotricity
- EDF
- ESB Energy
- Octopus Energy
- Outfox The Market
- OVO Energy
- Scottish Power
- Shell Energy
- SO Energy
- The Co-Operative Energy
- The Utility Warehouse
- Utilita Energy
If you’d like to get in touch with any of these companies about the ECO scheme, Ofgem has their contact details.
Home Upgrade Grant
From April 2023 to March 2025, 45 English local authorities have the authority to provide grants, ranging up to £10,000 (see the provided list), to homeowners within their regions for diverse enhancements, including solar panels.
Typically, a local authority will fund 87% of your panel costs, often reaching 100% in numerous instances.
Home Upgrade Grant eligibility requirements
To qualify, your home should not be connected to the gas grid, and generally, the total gross annual income of your household should not surpass £31,000. Moreover, your property must hold an Energy Performance Certificate (EPC) rating falling within the E, F, or G categories.
Potential savings with the Home Upgrade Grant
Up to this point, local authorities have, on average, subsidized 87% of the initial expenses linked to solar panel installation.
For an average three-bedroom home, this translates to a reduction of £6,800 in installation costs, without factoring in potential energy bill savings.
By harnessing readily available solar energy, households can expect an average reduction of 70% in their electricity expenses, leading to potential savings ranging from £8,000 to £20,000 over the next 25 years. The specific amount varies based on the household’s size and location.
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