Is there a grant for solar panels in the UK?

There is no universal solar grant. Means-tested schemes such as ECO4 help eligible low-income households, and 0% VAT applies to all residential installations.

Do I pay VAT on solar panels?

No. Residential solar and battery installations currently attract 0% VAT in the UK.

Solar panel grants, VAT and the Smart Export Guarantee

In 2026, UK homeowners benefit from 0% VAT on residential solar and battery installations, the Smart Export Guarantee paying roughly 15p per kWh for energy exported to the grid, and means-tested grants such as ECO4 for eligible low-income households. There is no universal cash grant for solar, but these schemes meaningfully reduce the net cost.

Solar incentives change over time, so always confirm current rules before you buy. Here is a plain-English summary of what is available in the UK in 2026.

0% VAT on solar and batteries

Residential solar panel and battery installations currently attract 0% VAT in the UK, rather than the standard 20%. This is applied automatically by your installer and is one of the biggest savings available, already reflected in the installed prices you are quoted.

The Smart Export Guarantee (SEG)

The Smart Export Guarantee requires larger energy suppliers to pay you for electricity you export to the grid. Rates vary by supplier, but a competitive SEG or smart tariff pays around 15p per kWh. You need a smart meter and an MCS-certified installation to qualify.

Grants for eligible households

ECO4: support for low-income and vulnerable households, often combined with insulation measures.
Local authority schemes: some councils run time-limited solar or energy efficiency grants.
Eligibility is usually means-tested or tied to benefits and property energy rating.

What this means for your cost

For most households, the headline incentives are 0% VAT (already in the price) and SEG export income (which improves your payback). The SunSum calculator includes a Smart Export Guarantee assumption in its savings estimate so you can see the effect.

Frequently asked questions

Is there a grant for solar panels in the UK?: There is no universal solar grant. Means-tested schemes such as ECO4 help eligible low-income households, and 0% VAT applies to all residential installations.
How much does the Smart Export Guarantee pay?: It varies by supplier, but a competitive SEG or smart tariff pays around 15p per kWh for exported electricity in 2026.
Do I pay VAT on solar panels?: No. Residential solar and battery installations currently attract 0% VAT in the UK.

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