Solar panel grants & the Smart Export Guarantee, explained

The honest headline

If you've seen adverts for a 'government free solar grant', treat them with suspicion — there is no universal, non-means-tested scheme that gives the general public free or subsidised solar panels. The genuine, everyone-qualifies support comes in two forms: 0% VAT on the installation, and being paid for the power you export. Beyond that, grants exist only for low-income and fuel-poor households, and they're accessed through official routes, not cold-callers.

Here's each of the real supports, and who they're for.

0% VAT on solar and batteries

Installing solar panels — and, since 1 February 2024, standalone home batteries — is zero-rated for VAT across the UK. That 0% rate applies to the whole installed package, equipment and labour, and it runs until 31 March 2027. From 1 April 2027 it reverts to the reduced rate of 5%.

In practice this is a straightforward saving applied by your installer at the point of sale — there's nothing to claim. But the deadline matters: on a £7,600 system, the difference between 0% and 5% VAT is real money, so if you're close to deciding, the pre-April-2027 window is worth noting.

The Smart Export Guarantee (SEG)

The Smart Export Guarantee is the scheme that pays you for surplus solar electricity you send back to the grid. Every electricity supplier with at least 150,000 domestic customers must offer at least one SEG export tariff; smaller suppliers can offer one voluntarily. It replaced the old Feed-in Tariff, which closed to new applicants in 2019.

The catch is that suppliers set their own rates, and they vary enormously — from around a penny to the low-20s of pence per kWh — with the highest rates usually reserved for customers who also buy their electricity from that same supplier. Rates can change at short notice, so it's worth comparing export tariffs rather than defaulting to your current supplier's. You'll need an MCS-certified installation to qualify, and SEG applies in England, Scotland and Wales (not Northern Ireland).

One honest point the export figures make clear: because export rates are usually well below the ~26p you pay to import, you save more by using your own solar during the day than by exporting it — which is the real argument for a battery or for shifting usage into daylight.

Grants for low-income and fuel-poor homes

If your household is on a low income or certain benefits and your home has a poor energy rating, you may get help toward solar (among other measures) through a means-tested scheme:

ECO4 (the Energy Company Obligation) runs until 31 December 2026 and is delivered by the larger energy suppliers for low-income and fuel-poor households, typically in EPC band D–G homes. The Warm Homes: Local Grant, delivered by councils in England, funds energy-saving improvements — which can include solar — for privately owned homes in EPC bands D–G, generally where household income is £36,000 a year or less (some households qualify via benefits or a designated area).

Scotland, Wales and Northern Ireland run their own devolved schemes. Note that as of 2026 Home Energy Scotland's grant and loan is focused on heating and insulation and does not currently fund standard solar PV. Always apply through the official GOV.UK, Ofgem or your council's route — never hand your details to an unsolicited 'free grant' caller.

Solar Together: council group-buying

One genuinely useful route that isn't a grant: Solar Together (run by councils in partnership with iChoosr). Residents in a participating area register their interest — free and with no obligation — during a fixed window, then vetted installers compete in a reverse auction to set a single group price. You get a personalised recommendation and can walk away if it's not for you.

It won't always beat every individual quote, but it removes the legwork and the sales pressure, and the group pricing is often competitive. Check whether your local council is running a round.