Solar panel grants and loans in 2026: what you can actually get

The short answer

Most homeowners will not get solar panels for free. What most people can get is:

• 0% VAT on panels and batteries, until 31 March 2027.
• A cheaper loan through the government’s Warm Homes Loan Scheme, open to homeowners across the UK from September 2026.
• Payments for the electricity you export, through the Smart Export Guarantee.

If your household income is lower, or you get certain benefits, you may also be able to get panels paid for through a grant. Those are covered below.

Warm Homes Loan Scheme (cheaper loans, whole UK)

This is part of the government’s Warm Homes Plan. The government pays lenders a grant so they can cut the interest rate on loans for solar panels, batteries and heat pumps.

• Who can apply: owner-occupiers and private landlords, anywhere in the UK. There is no income limit; the lender checks you can afford the repayments.
• How much: up to £15,000 for solar panels and up to £15,000 for a battery.
• How much cheaper: the government grant can bring the interest rate down by up to about 5 percentage points, on loans of three years or more. The exact rate depends on the lender and the loan length.
• The catch: the work must be done by an MCS-certified installer, and you apply through a lender taking part in the scheme, not the government.

Lenders started offering these loans from September 2026, and more lenders are expected to join in 2027.

Warm Homes: Local Grant (England, lower-income homes)

This grant, run by local councils, can pay for solar panels as well as insulation and heat pumps. Each council runs its own scheme, but you will usually qualify if your home has an energy rating (EPC) of D to G and one of these applies:

• your household income is under £36,000 a year
• you get certain means-tested benefits
• you live in a postcode the scheme lists as a low-income area

Owner-occupiers and private tenants can both apply. Search your council’s website for “Warm Homes Local Grant” to check whether your council is taking part and how to apply.

ECO4 (energy company funding, ends 31 December 2026)

ECO4 is paid for by the big energy companies and helps households on low incomes or in fuel poverty. It mainly funds insulation and heating, and solar panels are on its list of eligible measures, usually as part of a wider package. The scheme was extended and now closes on 31 December 2026, so if you think you qualify, apply soon through your energy supplier or council.

The Great British Insulation Scheme ended on 31 March 2026. It mainly covered insulation and never included solar panels.

Scotland and Wales

The Warm Homes Loan Scheme covers the whole UK. Scotland and Wales also run their own schemes: Home Energy Scotland in Scotland and Nest in Wales. Their rules change often, so check their websites for what is on offer for solar right now.

0% VAT until 31 March 2027

Any homeowner who has solar panels or a battery professionally installed gets this one. Solar panels and batteries installed in a home are zero-rated for VAT until 31 March 2027. After that the rate goes back to 5%. On a typical £7,600 system that is about £380 saved. See our guide to the VAT deadline.

Watch out for “free solar panel” offers

Be careful with cold calls or adverts promising free solar panels to everyone. Genuine grants are means-tested and run through councils, energy suppliers or approved lenders. Some “free” offers are actually a lease on your roof, which can make selling your home harder. If in doubt, ask who is paying, what you are signing and whether the installer is MCS certified.

What to do next

Even without a grant, solar can pay for itself. Try our solar savings calculator to see a rough figure for your home.

Ready to see what it would cost for your home? Answer a few quick questions below and we’ll match you with an installer who covers your area. It’s free and there’s no obligation.