There is no direct cash grant for solar panels for most homeowners in England in 2026. The support that does exist is 0% VAT on the installation until 31 March 2027, the Smart Export Guarantee that pays you for electricity you export, and the Warm Homes: Local Grant, which can fund solar and a battery for owner occupiers on a low income in an EPC D to G home. Anyone offering "free solar panels" to a household that is not low income is selling something else.
Key takeaways
- No cash grant for solar exists for most homeowners in 2026; be wary of anyone who says otherwise.
- 0% VAT on solar panels and batteries until 31 March 2027 saves £1,000 to £1,600 on a typical 4 kW system against the standard rate.
- The Smart Export Guarantee pays 5p to 15p per kWh exported; a typical 4 kW system earns £150 to £400 a year.
- Owner occupiers on a low income in an EPC D to G home can get solar PV and a battery through their council's Warm Homes: Local Grant until March 2028. The council chooses the installer.
- Low or zero interest Warm Homes Fund loans for homeowners who do not qualify for grants are expected to open during 2027.
- A 4 kW system typically costs £5,000 to £8,000 installed and pays back in 7 to 12 years.
Is there a government grant for solar panels in 2026?
Not for the typical homeowner. The two supplier funded schemes people remember are going or gone: the Great British Insulation Scheme closed on 31 March 2026 and ECO4 ends on 31 December 2026 with no successor. The Boiler Upgrade Scheme is for heat pumps only.
What replaced the grants is a tax break and an income stream: 0% VAT on the install and the Smart Export Guarantee on what you export. Together they are worth more than most people expect, and they apply to every household, not just those on benefits.
The one real grant route, the Warm Homes: Local Grant, is for low income owner occupiers and is run by councils. It is covered below.
How much does 0% VAT save on solar?
Solar panels and battery storage are energy-saving materials under HMRC VAT Notice 708/6. Installed in a home, they are 0% VAT until 31 March 2027, after which the rate is due to become 5%. A battery fitted on its own, without panels, has also been 0% since 1 February 2024.
Worked example, using typical installed prices for a 4 kW system:
- Typical 4 kW system at 0% VAT: £5,000 to £8,000 installed.
- The same system at the standard 20% rate would be £6,000 to £9,600. The 0% rate saves £1,000 to £1,600.
- At 5% from April 2027 the same system would cost £5,250 to £8,400, so ordering before 31 March 2027 saves £250 to £400 on top.
- Add a 10 kWh battery (£4,500 to £7,000) and the 0% rate saves a further £900 to £1,400 against the standard rate.
The full list of what qualifies is in 0% VAT on insulation, solar and heat pumps.
What is the Smart Export Guarantee worth?
The Smart Export Guarantee (SEG) obliges larger energy suppliers to pay you for electricity your panels send to the grid. Rates vary by supplier from around 5p to 15p per kWh, and you do not have to sell to the same company you buy from. A south facing 4 kW system in London generates around 3,400 to 3,800 kWh a year. Whatever you do not use at the moment it is generated is exported, and a typical 4 kW system earns £150 to £400 a year depending on the tariff.
SEG payments depend on the installation having an MCS certificate. Solar we arrange is project-managed by Stay Warm and installed by accredited, MCS certified installers, so the certificate comes with the job.
Can I get solar panels through the Warm Homes: Local Grant?
Yes, if you qualify. The Warm Homes: Local Grant runs in England from 1 April 2025 to 31 March 2028 and covers solar PV and battery storage alongside insulation, ventilation and heat pumps. It is for owner occupiers on a low income (household income under £36,000, or on means-tested benefits, or living in a deprived postcode area) whose home is EPC D to G. Private landlords can get 50% funding on a first rented property.
Funding is up to £15,000 for energy performance measures and £15,000 for low carbon heat per home (raised to £16,600 each in the July 2026 guidance, averaged across a council's project). In London you apply through Warmer Homes London, the GLA consortium of 31 boroughs; Surrey, Kent and Hertfordshire councils run their own schemes. The council appoints the installer. You cannot pick a firm and ask the council to pay them. See the Warm Homes: Local Grant in London.
| Household | Support available for solar in 2026 | Where to go |
|---|---|---|
| Owner occupier, income £36,000 or more | 0% VAT to 31 March 2027, Smart Export Guarantee, Warm Homes Fund loans expected 2027 | Any MCS certified installer |
| Owner occupier, low income, home EPC D to G | Warm Homes: Local Grant may fund solar and battery in full, plus 0% VAT and SEG | Your council or Warmer Homes London; the council chooses the installer |
| Owner occupier, low income, home EPC A to C | 0% VAT, SEG; not eligible for WH:LG on EPC band | Any MCS certified installer |
| Private landlord | 0% VAT, SEG, WH:LG at 50% funding on a first rented property if the tenant is low income and the home is EPC D to G | Your council |
| Social housing tenant | Ask your landlord; the Warm Homes: Social Housing Fund funds landlords, not tenants | Your housing association or council |
Will there be solar loans?
The Warm Homes Plan, published in January 2026, includes a planned Warm Homes Fund of roughly £5bn in low or zero interest loans for homeowners who do not qualify for grants. The design was consulted on in 2026 and the fund is expected to open during 2027. Solar is the kind of measure it is meant for: a clear payback, but an upfront cost that puts people off.
Note that the 0% VAT rate ends on 31 March 2027, so the loans and the tax relief may not line up. The Warm Homes Plan explained has the full timeline.
How to spot a "free solar" scam
Because there is no general grant, an offer of free or "government funded" solar to an ordinary household should make you pause. Common tactics:
- "Grant funded, offer ends this week." No solar grant for the general public exists, and the Warm Homes: Local Grant is applied for through the council, never through a salesperson at the door.
- A finance agreement dressed up as a grant. The panels are "free" because you sign a loan or a long lease. Read what you are signing and who owns the panels.
- Rent a roof. A company keeps the export income for 20 years or more in return for fitting panels. That can complicate a sale or remortgage.
- No MCS certificate. Without one you cannot claim the Smart Export Guarantee, and a lender may not accept the installation.
- Pressure to pay a deposit on the day. A proper installer surveys the roof, sizes the system and sends a written quote.
We say what exists, quote the real price with 0% VAT shown, and the work is done by accredited, MCS certified installers. The solar panels service page explains how it works and the solar panels cost in London guide has price tables. Get a free quote when you are ready.
Frequently asked questions
Are there any solar panel grants in 2026?
Not for most homeowners. The support is 0% VAT until 31 March 2027 and the Smart Export Guarantee. Owner occupiers on a low income in an EPC D to G home can apply to their council for the Warm Homes: Local Grant, which can fund solar and a battery, with the council choosing the installer.
Can I get free solar panels?
Only through the Warm Homes: Local Grant if you are a low income owner occupier in an EPC D to G home, applied for through your council or Warmer Homes London. Any other "free solar" offer is a loan, a lease or a rent a roof deal.
Is VAT charged on solar panels?
No, not until 31 March 2027. Solar panels and batteries are 0% VAT when installed in a home. From April 2027 the rate is due to become 5%.
How much does the Smart Export Guarantee pay?
Between about 5p and 15p per kWh exported, depending on the supplier. A typical 4 kW system earns £150 to £400 a year. You need an MCS certificate and a smart meter.
Can landlords get help with solar?
Private landlords can get 50% funding on a first rented property through the Warm Homes: Local Grant if the tenant is on a low income and the home is EPC D to G. 0% VAT and SEG apply to landlords as well.