Solar panel grants in 2026: the short answer
Solar panel grants exist, but free panels are not on offer to everyone. In England, the main one is the Warm Homes: Local Grant, and it is aimed at lower income homes with poor energy ratings. Everyone else is looking at a government backed loan, a VAT break, or both.
That is less exciting than the “free solar panels” headlines that do the rounds, but it is still real help. With solar panel grants, the trick is knowing which bucket you fall into before an installer tells you. Below we go through each option, who it is for and what to check, using the government’s own pages as read on 10 November 2026.
Who can get a solar panel grant?
If you live in England, you may be able to get solar panels fitted for free through the Warm Homes: Local Grant. Your council organises and pays for the work, and you do not pay for it. Solar panels are on the list of improvements it can suggest, along with insulation, air source heat pumps and smart controls.
To be eligible, the gov.uk page says your home must:
- be in England
- be privately owned, either by you or your landlord
- have an Energy Performance Certificate (EPC) rating of D, E, F or G
Your household income must usually be £36,000 a year or less. The word “usually” is doing some work there: if you earn more, you might still qualify if you live in a certain postcode area or someone in your household is getting certain benefits. Your council also needs funding available, so eligibility is not a guarantee.
A grant does not mean solar panels for everyone who qualifies, either. The council arranges a home survey first, and suggests what suits the property. That might be panels, or it might be loft insulation. If you rent, your landlord may need to pay for some of the improvements.
Our guide to the Warm Homes Local Grant goes through who qualifies and how to apply in more detail.
What if you do not qualify for a solar panel grant?
For homeowners who do not qualify, the help with solar panels now comes as a loan rather than a grant. The government’s Warm Homes Loan Scheme offers no and low interest loans to spread the cost of solar panels, batteries and heat pumps, and it is available to households across the entire UK.
The government’s factsheet, published on 27 October 2026, says:
- loans for solar panels go up to £15,000, and an electrical storage battery up to another £15,000
- the government has worked with lenders on an up to 5% reduction in interest rates compared with regular loans, and ten lenders are offering loans initially, some interest free
- there is up to thirty years to repay in some cases
- work under the scheme is carried out by MCS certified installers
You apply to a participating lender or installer rather than to the government, and the lender runs its usual affordability and credit checks. The factsheet’s own advice is to compare quotes and look at the total amount you will repay, not just the monthly figure. A long loan with a low payment can still add up.
You cannot use a Warm Homes loan and other government funding to pay for the same improvement. You can use one alongside other schemes for different work: the government names the Boiler Upgrade Scheme and Home Energy Scotland grants. Our news story on the Warm Homes Loan Scheme covers how it was announced and what was still missing at launch.
The VAT break on solar panels
This one is not among the solar panel grants on paper, and most people miss it because it does not have a form. Under HMRC’s VAT Notice 708/6, a zero rate applies to the installation of certain energy saving materials, solar panels among them, from 1 May 2023 to 31 March 2027. From 1 April 2027 these revert to the reduced rate of 5%.
The relief applies to the installation, so it is your installer who accounts for it. Check the quote shows 0% VAT on a fitted system. If you are weighing up solar panels anyway, the date is worth having in your diary, because waiting past March 2027 means paying VAT that you would not pay today.
Key takeaways
- The main solar panel grant in England is the Warm Homes: Local Grant, for lower income homes rated D to G.
- Other homeowners can apply for a no or low interest Warm Homes loan of up to £15,000 for solar panels.
- Fitted solar panels are zero rated for VAT until 31 March 2027.
- In Scotland, Wales and Northern Ireland, check your own nation’s schemes.
Getting paid for the power you do not use
The Smart Export Guarantee is not one of the solar panel grants, but it is part of the sum. Ofgem says the scheme requires some electricity suppliers, known as SEG licensees, to pay small scale generators for the electricity they export to the grid. Solar PV is an eligible technology and the installation must be in Great Britain. Each supplier sets the rate, contract length and other terms, and the rate must always be above zero.
Because each supplier sets its own rate, it pays to shop around rather than take the first offer. Our guide to SEG rates explains how they work and what to look for.
The same goes for the tariff you buy power on. Solar panels cut how much you import, they do not stop you importing. If you are still on the deal you signed up to years ago, that is the Do-Nothing Default quietly costing you, panels or no panels.
Solar panel grants outside England
The Warm Homes: Local Grant is only available in England. The gov.uk page says you might be able to get funding from a different scheme if you live in Scotland, Wales or Northern Ireland, so check the scheme for your nation before you assume you are out of luck. The Warm Homes loan itself is open across the UK.
Wherever you live, three habits save trouble when you look into solar panel grants or loans. Get more than one quote. Make sure the installer is MCS certified if you want a Warm Homes loan. And be wary of anyone cold calling with free solar panels that do not match the rules above. Our guide to solar panel installation covers what happens on the day and what a fitted system involves.
Frequently asked questions about solar panel grants
- Can I get free solar panels from the government?
- Possibly, if you live in England, your home is rated EPC D to G and your household income is usually £36,000 or less, through the Warm Homes: Local Grant. Your council decides what to fit after a survey, and needs funding available.
- Is there a solar panel grant for everyone?
- No. Homeowners who do not qualify can instead apply for a no or low interest Warm Homes loan of up to £15,000 for solar panels, from a participating lender or installer.
- Do I pay VAT on solar panels?
- Installing solar panels in a home is zero rated for VAT until 31 March 2027. From 1 April 2027 the rate reverts to 5%.
- Is the Smart Export Guarantee a grant?
- No. It is a scheme where some electricity suppliers pay you for the solar power you export to the grid, at a rate each supplier sets. It covers installations in Great Britain.
- Can landlords get solar panel grants for rented homes?
- Privately rented homes in England can qualify for the Warm Homes: Local Grant if the tenant meets the rules, but the landlord may need to pay for some of the improvements.
Sources
- GOV.UK, Apply for the Warm Homes: Local Grant. Supports the England only rule, the ownership and EPC D to G conditions, the £36,000 income threshold and its exceptions, the council survey, the landlord contribution and the other nations point.
- GOV.UK, Warm Homes Loan Scheme factsheet, published 27 October 2026. Supports the £15,000 solar and £15,000 battery limits, the up to 5% interest rate reduction, ten lenders initially, up to thirty years to repay, MCS certified installers and applying to a participating lender or installer.
- GOV.UK, Warm Homes Loan Scheme. Supports UK wide availability, the rule against using a loan and other government funding for the same improvement, and use alongside the Boiler Upgrade Scheme and Home Energy Scotland grants.
- HMRC, VAT Notice 708/6, last updated 31 January 2024. Supports the zero rate from 1 May 2023 to 31 March 2027 and the return to 5% from 1 April 2027.
- Ofgem, Smart Export Guarantee. Supports the SEG licensee obligation, the Great Britain condition, supplier set rates and the above zero rule.
Checked 10 November 2026.
