Solar Panel Grants and Government Funding

If you are eligible for free solar panels, you simply need to apply to check if you’re suitable for a grant. Unfortunately, there is no guarantee of receiving free solar panels, even if you meet all of the energy company’s criteria: it will come down to the limited number of grants available.

You don’t need to go through your own energy provider – you are free to apply to any energy company.

According to Ofgem, only homeowners living in their own house or flat are eligible. Council tenants and individuals who rent a privately owned home or flat are ineligible for solar PV grants.

In cases where you may not have eligibility for free solar panels, you may be able to apply for the following household benefits depending on your circumstances:

You can benefit from Child Tax Credit if you earn below £16,010 a year, while Child Benefits can be obtained if you meet certain criteria based on your status as either a single or two-parent family.

Working Tax Credit is available to those who earn below £16,010 a year, as well as one additional requirement such as being over 60, having a child under 16 or a child under 20 who is not in full-time education, or if you have Severe Disability or Disabled Worker Element.

Income Support or Universal Credit has similar eligibility criteria, with the same child requirements as above but also if you receive Child Tax Credit which includes a Disability Element, or if you have either a disabled child or pensioner premium.

Income-based Job Seeker’s Allowance holds the same eligibility criteria, as does Income-related Employment Support Allowances.

Ofgem states that only homeowners living in their own house or flat are eligible for the solar panel grant. Council tenants and individuals who rent a privately owned home or flat are ineligible for solar PV grants.

There was a scheme called the Green Deal, but this was abolished back in 2015.

The idea behind the scheme was that – as pensioners stayed at home more during the day – they would benefit the most from solar energy, as they were using electrical equipment at times when the sun was out.

While this scheme no longer exists, there are grants available for pensioners as detailed in the table above which can help with the cost of living. For instance, the Cold Weather Payment is available if you receive Pension Credit and if the average temperature is forecast to be zero degrees celsius or below for over seven consecutive days.

There is no guarantee that you will be accepted for a grant as there are a limited number of grants available. Depending on your circumstances, there may be other grants available to you which can help with your fuel bills or general cost of living.

The energy suppliers included in the Energy Companies Obligation Scheme are:

• British Gas
• Bulb
• E (Gas & Electricity) Ltd
• E.ON Energy including Npower
• Ecotricity
• EDF Energy
• ESB Energy
• Octopus Energy
• Outfox the Market
• OVO (including SSE Energy Services)
• Scottish Power
• Shell Energy (formerly First Utility and formerly Hudson)
• So Energy
• The Co-operative Energy
• The Utility Warehouse
• Utilita Energy Ltd

You do not need to apply through your own energy provider – you are free to apply to any energy supplier’s scheme.

You’ll first need to apply and be confirmed as eligible for the free solar panel grant. Once this has happened, and you’ve been confirmed as a recipient, you will have a solar panel installer visit your property to confirm that your property is suitable for solar panels.

Moving forwards from this stage, your installation will then be scheduled and taken from there.

The length of the application process depends on availability and demand, as someone will need to come out to assess your home for the suitability of a grant. Suffice to say it won’t be instantaneous, but should take less than a year if successful in application.

The schemes have strict windows of application, and your best route is to seek out the deadlines from the energy suppliers for up-to-date information.

If you’re not eligible for a free solar panel grant, you can still save money on solar panels through other cost-saving schemes.

• Boiler Upgrade Scheme

If you live in England or Wales, you can also potentially save money by asking your installer to claim a grant under the Boiler Upgrade Scheme.

Launched in April 2022, this scheme replaces the Renewable Heat Incentive.The scheme is open to domestic and small non-domestic properties in England and Wales. It runs from 2022 to 2025. You can get:

• £5,000 off the cost and installation of an air source heat pump
• £5,000 off the cost and installation of a biomass boiler
• £6,000 off the cost and installation of a ground source heat pump

You can get one grant per property and you must have a MCS certified installer apply for the grant on your behalf.

For more information on the BUS scheme, take a look at the government page.

• Smart Export Guarantee (SEG)

This government-backed initiative was launched at the start of 2020. The scheme is another government-led scheme that requires electricity suppliers to pay small-scale generators for low-carbon electricity which then goes back to the National Grid.

According to Ofgem, SEG Licensees determine the rate at which they will pay SEG Generators, the contract length and other terms. Generators thinking of applying for an SEG tariff should therefore shop around to see which tariff is best for their circumstances.

SEG tariff rates must always be above zero. SEG payments are calculated by using export meter readings.

SEG Generators are paid by their chosen SEG Licensee for the electricity which they export back to the National Grid. This will grant owners savings in the long-term, despite an initial up-front cost.

If you aren’t eligible for a grant for solar panels, there are other ways in which you can reduce the cost of your energy bills.

• Cold Weather Payment

The Cold Weather Payment scheme is a government-backed initiative that will give households a payment if the average temperature is recorded as, or forecast to be zero degrees celsius or lower over seven consecutive days.

This will equate to £25 for every seven days between 1 November and 31 March. You’re eligible for the Cold Weather Payment if you receive:

• Pension credit
• Income support
• Income-based Jobseeker’s Allowance
• Income-related Employment and Support Allowance
• Universal Credit
• Support for Mortgage Interest

For full information on the Cold Weather Payment, see this page.

• Winter Fuel Payment

For those born on or before 26 September 1955, you can receive £100 to £300 as a Winter Fuel Payment. You will receive this if you receive:

• State Pension
• Social security benefit (not Housing Benefit, Council Tax Reduction or Child Benefit or Universal Credit)

For full information on the Winter Fuel Payment, see this page.

• Warm Home Discount Scheme

The Warm Home Discount Scheme will grant you £140 off your electricity bill as a one-off discount between October and March. You are eligible for this if you:

• Receive the Guarantee Credit element of Pension Credit (core group)
• You’re on a low income and meet your energy supplier’s criteria (broader group)

For full information on the Warm Home Discount Scheme, see this page.

• Affordable Warmth Obligation

The Affordable Warmth Obligation can give you access to funds to make energy-saving improvements to your property. You are eligible for this scheme if you:

• Claim certain benefits and live in private housing
• Live in social housing

This grant can help you with works such as insulation for lofts or cavity walls, or replacement boilers. For full information on the Affordable Warmth Obligation, see this page.

Solar panels come in different sizes and wattages, and depending on your available roof space you will see higher or lower costs associated with those variables.

A single solar panel can cost between £350 to £500, while the most common solar panel system will come in at between £6,000 to £8,000 for 16 panels for a 4kW panel system.

Solar panels are increasingly popular with eco-conscious homeowners across the UK. If you are still unsure as to whether or not solar panels are right for your home, take a look at our round-up of advantages and disadvantages in our table below.

The addition of solar panels to your property is usually classed under permitted development, meaning there isn’t a need to apply to your local planning authority to gain planning permission.

There are stipulations within this, though, such as if your home is of listed nature or if it is situated within a conservation area. If in doubt, it’s best to check things out with your local planning authority to make sure you’re not installing something that will have to be taken away.

For full information on installing solar panels, take a look at the Planning Portal’s dedicated page.

Under the Energy Companies Obligation (ECO) scheme, low-income households can be entitled to upgrade to an energy-efficient boiler, either free of charge or at a sizeable discount.

As with most schemes, you’ll need to be on certain benefits and live in a certain type of property to be eligible, and only some energy companies are participating – a list of which you can find here.

For full information on free boiler grants, take a look at our dedicated page.

Double glazing can do a lot in the way of reducing road noise and insulating your home during the colder months – and it is possible to get a grant for double glazing installation in your home, providing you are eligible.

Companies have limited resources for double glazing grants, which means that all who are eligible might not receive a grant. You must be on certain benefits and live in a certain type of property to be in the running for a grant, and only certain companies are included in the scheme – a list of which you can find here.

For full information on double glazing grants, take a look at our dedicated page.