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The government is often updating the grants and schemes available, so it is important to do your own research.

This information was written to the best of our knowledge on the 8th September 2023


  • £4 billion budget allocated between 1st April 2022-2026
  • Greater chance of grant being successful due to LA flex which lets councils decide region-specific eligibility

VAT Reduction

  • 0% VAT for solar panels
  • Applicable for homes in Great Britain from 1st April 2022- 31st March 2027

Smart Export Guarantee (SEG)

  • Receive payments for selling any surplus energy back to the grid
  • Came into effect 1st January 2023


ECO4 replaced ECO3 from 1st April 2022 and it was introduced to allow lower-income households the opportunity to replace their inefficient heating system with a more efficient and environmentally friendly system, such as Solar panels.


  • Currently have an inefficient heating system within the D-G energy efficiency bands
  • Own your home and live in it, or live in private rented accommodation
  • All-electric homes (on and off gas) where biomass boilers or District Heat Network has been ruled out
  • Receiving government benefits (eg income support or child benefits)

If you are currently not receiving benefits but are considered low-income, you may still qualify for ECO4 under the ECO4 LA Flex.

LA Flex gives councils the flexibility to determine eligibility criteria in their region — criteria are no longer limited to availing benefits or even based on income and will be tailored to the circumstances of people in the area (e.g., age, number of occupants, number of children, condition of the house, etc.). This means that more people in the UK will be able to get solar panel grants.

Reduced VAT

From April 2022, homes in the UK can benefit from 0% VAT on the materials and installation of energy-efficient measures. After 5 years the VAT free period will end, and the rate will return to 5%.

The 0% VAT applies to other energy-saving materials too besides solar panels, such as heat pumps, biomass boilers, insulation etc.


  • Must include both the installation and products that need to be done together

If the installation qualifies, then the 0% VAT will automatically be applied by your installer.

Smart Export Guarantee (SEG)

The Smart Export Guarantee came into effect on 1st January 2020 and is currently active. It enables small-scale low-carbon electricity generators to receive payments for any surplus energy they export back to the grid. Although this is not a direct government grant, all licensed suppliers must now offer an export tariff to their customers.


  • All homeowners with a regular solar panel system (up to 50KW capacity) are eligible under SEG. The house must be fitted with a smart meter in order to measure the exports.

Expired Initiatives

  • Feed-In Tariff (FIT) – closed for ne applications in 2019, however those that are already registered will continue to benefit from it
  • Domestic Renewable Heat Incentive (RHI) – expires on 31st March 2022. This was replaced with the Boiler Upgrade Scheme (BUS), however this is intended for upgrading to heat pumps and biomass boilers, not solar panels.

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