Solar Panel Grants and Funding Options in the UK

Solar panel grants and funding options

Solar panels are an expensive commodity for the average UK household, but they are excellent for saving money in the long term and reducing your carbon footprint. But what happens when you can’t afford these initial costs?

Luckily, there are plenty of government grants available should you need to reduce the cost. These grants, however, have specific eligibility criteria that you must meet in order to qualify.

In this blog post, we will discuss what solar panel grants are available to the UK public and some of the eligibility criteria that you need to consider.

 

What Grants Can Help Me With Solar Panel Costs?

There are several grants available that can assist you with the cost of a solar panel. Some of the main grants are the ECO4 scheme, the Smart Export Guarantee, the Home Upgrade Grant and the Warm Homes Plan.

 

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.

 

What is the Eligibility Criteria?

The ECO4 Scheme mainly targets households struggling with fuel poverty. Eligibility is based on specific criteria, such as:

 

  •  - Receiving certain government benefits (e.g. Universal Credit, Pension Guarantee Credit, Child Tax Credits).
  •  - Living in poorly insulated homes (typically with Energy Performance Certificate (EPC) ratings of D, E, F, or G).
  •  - Owning or privately renting your property, with your landlord's permission if you're renting.

 

What Can ECO4 Help Me With?

The ECO4 Scheme covers a range of energy-saving improvements, including:

 

  •  - Wall, loft, and floor insulation to retain heat more effectively.
  •  - Energy-efficient boilers to replace outdated systems.
  •  - Solar panels or renewable energy technologies to reduce dependency on traditional energy sources.
  •  - Smart heating controls to optimise energy use.

 

Each installation is tailored to the specific needs of the property to maximise energy efficiency and cost savings. If you are looking for a solar panel installer in the UK, Liverpool Heating is here to help! We aim to provide expert installations at a reasonable price to ensure your home has the best.

 

Smart Export Guarantee

The Smart Export Guarantee (SEG) was introduced in January 2020 to support small-scale renewable energy production.

It allows households and businesses with renewable energy systems, like solar panels or wind turbines, to sell surplus electricity back to the National Grid. This scheme encourages the adoption of green energy by offering a financial incentive for exporting unused electricity.

 

Eligibility Criteria

To qualify for the SEG, you need to meet these basic criteria:

 

  •  - Have a renewable energy system installed, such as solar panels, wind turbines, hydro systems, or anaerobic digestion systems.
  •  - Ensure your system has a capacity of 5MW or less (50kW for micro-CHP systems).
  •  - Have an approved export meter installed to measure the electricity sent to the grid.
  •  - Your system must be certified under the Microgeneration Certification Scheme (MCS) or an equivalent standard.

 

Both households and businesses can benefit from the SEG if they meet these requirements.

 

Warm Homes Plan

The Warm Homes plan was established in January 2025 and is set to begin in April 2025. It aims to improve the energy efficiency in over 300,000 homes over a three-year period.

The UK Government has committed around £3.4 Billion in funding over the 2025 - 2028 period, £1 Billion having been devoted to 2025 - 2026.

 

Eligibility

The eligibility criteria for the Warm Homes plan will include the following:

 

  •  - Focuses on homes with Energy Performance Certificate (EPC) ratings of D to G.
  •  - Eligible measures include insulation, solar panels, and heat pumps.
  •  - Targets privately owned homes (owner-occupied or privately rented).

 

One important thing to note about this scheme is that the eligibility criteria may differ slightly depending on where you are based.

 

How Much Do Solar Panels Cost Without Grants?

If you are not planning on using a grant or are not eligible for any, then it is the logical next step to wonder how much solar panels cost without help from a government incentive.

As a general price, a 4kW system for a 3-bedroom house would cost around £4,000 to £12,000, however, there are several factors that can affect this, you can read more details on this here.

 

How Can Liverpool Heating Help?

At Liverpool Heating, we offer installation services for renewable energy solutions in all areas of Liverpool. We are a proud member of the Renewable Energy Consumer Code (RECC) which commits us to following said code and installing high-quality solutions to a great standard.

We are also proud to be MCS and NAPIT certified which gives you a guarantee for quality when you choose Liverpool Heating. Contact us today at 0151 440 2000!

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