Solar Panel Grants and Funding Options in the UK
Solar panels are a major investment, but several UK grants and funding schemes can help bring the cost down. This guide walks through the main options — ECO4, the Smart Export Guarantee, the Home Upgrade Grant and the new Warm Homes Plan — along with what a system costs without support.
What grants can help with solar panel costs?
There are four main schemes worth knowing about: the ECO4 scheme, the Smart Export Guarantee, the Home Upgrade Grant and the Warm Homes Plan. Each targets different households and covers different measures, so it's worth checking which one fits your circumstances.
The ECO4 scheme
Launched in April 2022, ECO4 focuses on reducing carbon emissions and helping low-income households lower their energy bills by upgrading inefficient heating systems and installing energy-saving measures like insulation or modern boilers. It targets households facing fuel poverty — typically those receiving benefits such as Universal Credit, Pension Guarantee Credit or Child Tax Credits, living in poorly insulated homes with EPC ratings of D to G, and owning or privately renting (with landlord permission). Covered improvements include wall, loft and floor insulation, energy-efficient boilers, solar panels or other renewable technologies, and smart heating controls.
The Smart Export Guarantee
Introduced in January 2020, the Smart Export Guarantee (SEG) supports small-scale renewable energy production by letting households and businesses sell surplus electricity back to the National Grid. To qualify you need a renewable system such as solar panels, wind, hydro or anaerobic digestion, with a capacity up to 5MW (or 50kW for micro-CHP), an approved export meter, and certification under the Microgeneration Certification Scheme (MCS) or equivalent.
The Warm Homes Plan
Established in January 2025 and set to begin in April 2025, the Warm Homes Plan aims to improve energy efficiency in over 300,000 homes over three years. The UK Government has committed around £3.4 billion across 2025 to 2028, with £1 billion devoted to 2025 to 2026. It covers insulation, solar panels and heat pumps for homes with EPC ratings of D to G, targeting privately owned or privately rented properties, though criteria may vary by region.
How much do solar panels cost without grants?
Without any grant support, a 4kW system for a typical 3-bedroom house would cost around £4,000 to £12,000. The final price depends on a number of factors, so quotes can vary considerably from home to home.
How can Liverpool Heating help?
Liverpool Heating provides renewable energy installation across Liverpool and holds RECC (Renewable Energy Consumer Code) membership alongside MCS and NAPIT certifications. You can reach the team on 0151 440 2000 to discuss which grants you may qualify for and the right system for your home.
