UK Solar Panel Grants 2026 — ECO4, GBIS, Warm Homes Plan & SEG
In 2026 the live UK solar grants and tax incentives are: ECO4 (free install for means-tested low-income households, runs to March 2026 with a successor scheme expected), the Warm Homes Plan (Labour’s £3.4bn replacement starting late 2026), Great British Insulation Scheme (GBIS) (£750–£1,500 toward solar bundled with insulation), Home Upgrade Grant 2 (HUG2) (£10k–£25k for off-gas-grid low-income homes), Smart Export Guarantee (SEG) (5–15p/kWh exported), and 0% VAT (saves ~£1,500 on a 4 kWp system, runs to 31 March 2027). Scotland has separate Home Energy Scotland grants and loans.
UK solar grants 2026 at a glance
- ECO4 (free solar): Fully funded installation if you receive qualifying benefits and have EPC D, E, F or G — runs to 31 March 2026
- Warm Homes Plan: Labour government’s £3.4bn replacement — launches late 2026, expected to fund solar as part of bundled home upgrades
- GBIS: £750–£1,500 toward solar bundled with insulation. Council tax bands A-D in England, A-E in Wales/Scotland
- HUG2: £10k–£25k for off-gas-grid low-income households with EPC D-G — Phase 4 funding through 2026/27
- SEG: 4–15p/kWh export tariff — Octopus Outgoing Fixed (15p) and E.ON Next Export (5.5p) leading 2026 rates
- 0% VAT: Saves ~£1,500 on a typical 4 kWp system, runs to 31 March 2027
- Home Energy Scotland (Scotland): Up to £15,000 in interest-free loan + £1,250 cashback for solar + battery
- Northern Ireland: No direct grant programme — relies on SEG via NIE Networks + 0% VAT
ECO4 — free solar for qualifying low-income households
The Energy Company Obligation phase 4 (ECO4) compels large energy suppliers to fund home energy upgrades for low-income, fuel-poor and vulnerable UK households. Solar PV is a qualifying upgrade alongside insulation, heat pumps and first-time central heating. The current ECO4 phase runs until 31 March 2026; a successor scheme under the Warm Homes Plan launches in late 2026.
ECO4 eligibility checklist
- Property: owner-occupier or private rented (with landlord consent)
- EPC rating: D, E, F or G (post-installation must improve by at least one band)
- Household receives one or more qualifying benefits (see below)
- Property heated by gas, oil, LPG, electricity or solid fuel
Qualifying ECO4 benefits
How to apply for ECO4 solar
- Check eligibility via the BestBuilders free quote form — we route low-income enquiries to ECO4-registered Ofgem installers
- Installer arranges EPC survey (free under ECO4)
- Installer applies to participating energy supplier on your behalf
- Survey, install and post-install EPC issued — typical timeline 8–14 weeks
- No upfront cost — the grant covers panels, inverter, scaffolding, MCS certification
Warm Homes Plan — the £3.4bn successor launching late 2026
Labour’s flagship home-energy programme replaces ECO4 with a more comprehensive offer: solar PV, batteries, insulation, heat pumps and EV charging bundled into single-property upgrades for low-to-moderate-income households. Key 2026 details:
- Budget: £3.4bn over 3 years (2026/27 to 2028/29)
- Eligibility: Wider than ECO4 — expected to include “low-to-moderate income” (definition pending)
- Funding model: Direct treasury funding (not energy bill levy as ECO4 used)
- Solar PV: Expected to be a qualifying measure when bundled with insulation
- Launch date: Autumn/winter 2026 — consultation underway through summer 2026
- Delivery: Local authorities and Energy Hubs as delivery partners
The Warm Homes Plan is the most significant change to UK home energy grants since RHI. We’ll update this guide as scheme detail is published — register your interest via the form below to be notified when applications open.
Great British Insulation Scheme (GBIS) — solar bundles
GBIS targets the “able-to-pay-some” middle — council-tax bands A-D in England (A-E in Wales/Scotland), EPC D-G properties. Solar PV is funded as a bundled measure with insulation — you cannot get GBIS for solar alone.
GBIS solar award amounts
- Loft insulation + solar bundle: £750–£1,200 toward solar
- Cavity wall + solar bundle: £1,000–£1,500 toward solar
- Solid wall insulation + solar bundle: £1,500 toward solar (max single payment)
- Underfloor insulation + solar bundle: £750–£1,200 toward solar
Council tax band check
Find your band on gov.uk/council-tax-bands. In England, bands A–D qualify (the lower-value 75% of homes). In Wales and Scotland, the threshold extends to band E.
Home Upgrade Grant 2 (HUG2) — off-gas-grid low-income households
HUG2 targets off-gas-grid homes (no mains gas connection) on low income with EPC D-G. Awards are substantial — £10,000–£25,000 per property — reflecting the higher cost of upgrading off-grid homes (which typically run on oil, LPG or electric heating).
- Property: Owner-occupier or private rented, EPC D-G, no mains gas connection
- Income: Below £36,000/yr household income
- Measures funded: Solar PV, heat pump, insulation, heating controls — usually as bundled package
- Delivery: Local authority partnerships (varies by area — check your local council’s “HUG2” or “Sustainable Warmth” programme)
- Phase 4 funding: Continues through 2026/27, then folds into Warm Homes Plan
Smart Export Guarantee (SEG) — 2026 best tariffs
SEG is mandatory for all licensed UK energy suppliers serving 150,000+ customers — they must offer a tariff that pays you for exported electricity. Rates vary widely: cheapest is 3p/kWh, best is 15p/kWh. You need an MCS-certified install and a smart meter to qualify.
A typical 4 kWp system exporting 1,800–2,500 kWh/yr earns £90–£375/year from SEG depending on supplier choice. With a battery (lower export volume, but higher self-use), SEG drops to £60–£180/yr but household savings more than compensate.
Scotland-specific schemes — Home Energy Scotland
Scotland runs its own programme via Home Energy Scotland (HES), funded by the Scottish Government. The offer is structurally different to England/Wales and often more generous for solar.
- HES Loan: Up to £15,000 interest-free for solar + battery, repaid over 10–12 years
- HES Grant cashback: Additional £1,250 grant for solar PV; £6,000 for solar battery storage
- Eligibility: Scottish home-owners; some restrictions for landlords
- Apply via: homeenergyscotland.org — free advice & application support
- Rural Affordable Warmth scheme: Additional grants for off-gas-grid rural Scottish homes
An average Scottish 4 kWp + 10 kWh battery install of £9,500–£12,000 can be funded with £7,250 grant + cashback, with the remainder via interest-free loan — effectively zero out-of-pocket for many applicants.
“Free solar panels” scams — what to avoid
Free solar grants are real, but the scams around them are pervasive. Common red flags:
❌ Hard No
- Cold-call door-knocker offering “free solar today only”
- Unsolicited texts/calls about “your ECO4 application” (real applications are initiated by you)
- Asks for £50–£500 “survey fee” or “reservation deposit”
- Mentions a non-existent “Government Free Solar Scheme 2026”
- Pressures you to sign on the doorstep
- Cannot supply MCS / Ofgem ID numbers verifiable online
- Claims you qualify without checking benefit status or EPC
✅ Legitimate route
- Apply via gov.uk, simpleenergyadvice.org.uk, or your local council
- Or use a vetted aggregator like BestBuilders that routes you to MCS & Ofgem installers
- EPC survey is genuinely free under ECO4
- Installer applies on your behalf to the participating energy supplier
- No deposit or survey fee under ECO4 / GBIS / HUG2
- All installers are MCS-certified, RECC/HIES members, with Ofgem TrustMark
If you receive a suspicious call or text, report it to Action Fraud on 0300 123 2040 and forward scam texts to 7726 (free).
Check your solar grant eligibility — free
BestBuilders matches you with up to 3 MCS-certified solar installers who handle ECO4 / GBIS / HUG2 grant paperwork on your behalf. Compare quotes, check eligibility, get free EPC survey under ECO4 — at no cost.
Frequently asked questions
Yes — under ECO4, qualifying low-income households on means-tested benefits (Universal Credit, Pension Credit, Income Support, ESA, Tax Credits, Housing Benefit) with an EPC of D-G can get a fully funded solar installation. The current ECO4 phase runs to 31 March 2026; a successor under the Warm Homes Plan launches in late 2026.
The Great British Insulation Scheme contributes £750–£1,500 toward solar when bundled with insulation upgrades. The exact amount depends on the insulation type: loft £750–£1,200, cavity wall £1,000–£1,500, solid wall up to £1,500 maximum. You must be in council tax band A-D in England or A-E in Wales/Scotland.
Best 2026 rates: Octopus Outgoing Fixed at 15p/kWh, Octopus Agile Outgoing variable 8–25p/kWh (averages ~12p), British Gas Export & Earn Plus at 6.4p/kWh, EDF Export Variable at 5.6p/kWh, E.ON Next Export at 5.5p/kWh. A typical 4 kWp system exporting 1,800–2,500 kWh/year earns £90–£375 from SEG depending on supplier choice.
Yes — the 0% VAT rate on domestic solar and battery installations was extended to 31 March 2027 by HMRC. It saves around £1,500 on a typical 4 kWp residential system. Coverage includes panels, inverter, battery, mounting and installation labour. Commercial installs remain at 20% VAT.
The Warm Homes Plan is Labour’s £3.4bn programme launching in late 2026 that replaces ECO4 with a wider-eligibility, treasury-funded home energy upgrade scheme. It’s expected to fund solar PV when bundled with insulation, with a broader “low-to-moderate income” eligibility than ECO4. Final scheme detail is being consulted on through summer 2026.
HUG2 is delivered via local councils as part of Sustainable Warmth programmes. Eligibility: off-gas-grid home (no mains gas), EPC D-G, household income below £36,000/yr. Awards of £10,000–£25,000 fund solar + heat pump + insulation as bundled packages. Apply through your local council’s home energy team or via the Energy Saving Trust referral system.
Scotland has its own programme via Home Energy Scotland: up to £15,000 interest-free loan for solar + battery, plus £1,250 grant cashback for solar PV and £6,000 for solar battery storage. Apply via homeenergyscotland.org — HES provides free advice and application support. Rural off-gas-grid homes can also access the Rural Affordable Warmth scheme.
Yes for ECO4 (private rental properties qualify if the tenant receives a qualifying benefit and consent is given). GBIS is open to landlords too. Some local authority HUG2 schemes restrict to owner-occupier. Free solar in social housing typically comes via the Social Housing Decarbonisation Fund (SHDF) rather than ECO4.
No. ECO4, GBIS and HUG2 cover the full cost — no deposit, no “survey fee”, no “reservation”. If anyone asks for upfront money before install, it’s a scam. The EPC survey is free under all three schemes when conducted by an approved installer.
ECO4: 8–14 weeks from eligibility check to commissioned system (EPC survey, supplier approval, install, post-install EPC). GBIS: 6–10 weeks. HUG2: 12–20 weeks (longer because bundled with insulation and heat pump). Scottish HES loan: 4–8 weeks after eligibility approval.