Government Funding and Grants for Solar Panels in the UK:

Your Guide to Affordable Renewable Energy

Current Government Funding for Solar Panels

Energy Company Obligation 4 (ECO4)

The ECO4 scheme is a government-backed initiative designed to improve energy efficiency in households, particularly for those in financial difficulty or receiving benefits.

• What It Covers: Solar panel installation and other energy-efficient upgrades.
• Who Qualifies: Low-income households or those receiving specific benefits such as Universal Credit, Income Support, or Pension Credit.
• How It Helps You: The ECO4 program reduces the upfront cost of solar panels or covers it entirely in some cases.
• Duration: Active from April 2022 to March 2026.

Learn more and check your eligibility for ECO4 today.

Zero Percent VAT on Solar Panels

In April 2022, the UK government introduced a 0% VAT rate for the installation of solar panels in residential properties. This incentive is a straightforward way to lower the cost of going solar.

• What It Covers: All solar panel installation costs.
• Who Qualifies: All UK homeowners installing solar panels.
• How It Helps You: Save 20% on the total cost of installation.
• Duration: Valid until March 2027.

Take advantage of this VAT relief to make your solar panel investment even more affordable.

Smart Export Guarantee (SEG)

The Smart Export Guarantee ensures that homeowners with solar panels can earn money by exporting excess electricity back to the national grid.

• What It Covers: Payments for unused energy generated by your solar panels.
• Who Qualifies: All UK homeowners with eligible solar installations.
• How It Helps You: Provides an additional income stream while reducing your energy costs.
• Ongoing: No end date, making it a long-term incentive.

Imagine earning while saving—find out how the SEG can maximize your solar investment.

Home Upgrade Grant (HUG2)

The HUG2 scheme supports energy-efficient upgrades, including solar panels, for households that are off the gas grid and have low incomes.

• What It Covers: Solar panels and other energy-saving measures.
• Who Qualifies: Low-income households not connected to the gas grid.
• How It Helps You: Reduces energy costs and reliance on fossil fuels.
• Duration: Active from April 2023 to March 2025.

If your home meets the criteria, HUG2 could significantly reduce your solar installation costs.

Why Choose Solar Panels Now?

With these incentives in place, there’s never been a better time to go solar. Here’s how these funding options can benefit you:

1. Reduce Upfront Costs: Programs like ECO4 and the zero VAT rate make it easier to afford solar panels, saving you thousands on installation.
2. Earn While Saving: The Smart Export Guarantee allows you to generate income while cutting your electricity bill.
3. Long-Term Financial Benefits: Solar panels typically pay for themselves within 8–10 years, and with government funding, your return on investment (ROI) happens even sooner.
4. Sustainability Goals: Lower your carbon footprint and contribute to a greener future for the UK.

How Southampton Solar Can Help

At Southampton Solar, we specialize in helping UK homeowners access these funding opportunities and maximize their solar investment. Here’s how we can assist you:

• Eligibility Checks: We’ll help determine which grants or incentives you qualify for.
• Personalized Solutions: Tailored solar panel installations to fit your home and budget.
• Hassle-Free Process: From consultation to installation, we handle everything, including applications for funding or grants.