Several government grants and schemes can help you get solar panels for free or at a much lower cost in 2025, particularly if you’re on a low income or receive benefits. The biggest opportunities are the new Warm Homes Plan and 0% VAT on all installations.
Solar panels are a brilliant way to cut your energy bills and help the environment. But the upfront cost can feel overwhelming. The good news? The UK government offers several grants and schemes that can slash the price or even get you solar panels completely free.
Solar panels work by capturing sunlight and turning it into electricity – and they work even on cloudy British days!
At Greener Homes, we’ve helped hundreds of families access these grants. Here’s everything you need to know about getting financial help for solar panels in 2025.
What Solar Panel Grants Are Available Right Now?
1. The New Warm Homes Plan: Up to £15,000 for Solar
Launched in April 2025, the Warm Homes Plan offers eligible households up to £15,000 each to cover energy-efficiency improvements such as solar panel installations.
Key details:
- £13.2 billion investment between 2025 and 2029
- Available to households with combined gross annual income under £36,000 and/or receiving government benefits
- Homes must have EPC ratings between D and G
- Covers England only
2. 0% VAT on Solar Installations
Here’s some immediate good news: there’s 0% VAT on solar panels, batteries, and other renewable energy products, allowing for a discount of up to £2,850 on the purchase of a 4kW solar system.
This applies to all UK homeowners and businesses when you buy solar panels with installation included.
3. Regional Grants and Local Schemes
Scotland:
- Home Energy Scotland grant offers up to £6,000 (£1,250 as a grant plus optional £4,750 loan) for energy improvements including solar panels.
Wales:
- Nest Warm Home Programme provides free energy advice and potential free home energy improvements, including solar panels.
England:
- Home Upgrade Grant scheme operated by around 45 local authorities offers grants of up to £10,000 for home improvements, including solar panels.
How Much Money Can You Save?
The grants can provide substantial savings:
- Warm Homes Plan: Up to £15,000 towards solar and other improvements
- 0% VAT: Saves up to £2,850 on a typical 4kW system
- Local grants: Between £6,000-£10,000 depending on your area
Without grants, solar panels cost roughly £6,000-£7,000 for a typical home system.
The Smart Export Guarantee: Get Paid for Your Solar Energy
Even after installation, you can earn money from your solar panels through the Smart Export Guarantee (SEG). This government scheme requires energy suppliers to pay you for surplus electricity you send back to the grid.
Current rates: The best SEG rates reach up to 29p per kWh with Octopus Energy (for their customers), whilst Scottish Power offers 12p per kWh for all households regardless of your energy provider.
Typical earnings: A standard 4.3kW solar system could earn up to £672 per year through SEG payments, helping offset installation costs even further.
Are You Eligible? Quick Check
Most solar panel grants target households that need the most help with energy costs. You’re likely eligible if:
✓ Your household income is under £31,000-£36,000 per year ✓ You receive benefits like Universal Credit, Child Benefit, or Pension Credit
✓ Your home has an EPC rating of D, E, F, or G ✓ You’re a homeowner or private tenant with landlord permission
Important: Many UK households that don’t have solar panels could be eligible for grants, so it’s worth checking multiple schemes.
How to Apply for Solar Panel Grants
Step 1: Check Your Eligibility
Use the government’s online eligibility checker or contact your local council to see which grants you qualify for.
Step 2: Contact Your Local Council or Energy Suppliers
Contact your local council to check for regional grants, or speak to energy suppliers about the Warm Homes Plan and other funding options.
Step 3: Get a Home Assessment
An installer will visit to confirm your home is suitable and which improvements would work best.
Step 4: Professional Installation
If approved, certified installers will fit your solar panels following all safety standards.
What If You Don’t Qualify for Grants?
Don’t worry – solar panels are still more affordable than ever.
Solar Together Group Buying
Solar Together helps households get average savings of 40% off typical market prices through group buying. Registration takes just five minutes.
Finance Options
Many solar companies offer payment plans spread over 3-10 years, making monthly costs manageable.
Long-term Savings
Solar panels can reduce your electricity bills by up to 90% and typically pay for themselves within 9-15 years. A typical home solar panel system saves around one tonne of carbon per year.
Planning Permission and Installation
Good news: In most cases, solar panel installations are considered permitted development and do not require planning permission unless your home is in a conservation area or is a listed building.
What to expect:
- Installation typically takes 1-2 days
- Minimal disruption to your daily routine
- Professional, certified installers handle all technical work
- 25-year warranty on most systems
Why Choose Solar Panels in 2025?
Environmental benefits:
- Typical home solar panels save around one tonne of carbon per year – equivalent to driving 3,600 miles
- Clean, renewable energy source
- Reduces dependence on fossil fuels
Financial benefits:
- Dramatically lower electricity bills
- Earn money through Smart Export Guarantee
- Increase your property value
- Protection against rising energy costs
Practical benefits:
- Solar panels work even on cloudy days and require minimal maintenance
- Systems last 25+ years
- Free energy from the sun
Getting Started with Greener Homes
At Greener Homes, we specialise in renewable energy solutions including solar PV systems. Our experienced team can:
- Check your eligibility for all available grants
- Handle grant applications on your behalf
- Provide professional design and installation
- Offer ongoing maintenance and support
- Help you access the best Smart Export Guarantee rates
We understand that every home is different. That’s why we provide personalised assessments to find the perfect solar solution for your property and budget.
Take Action Today
Solar panel grants are popular, and some have limited funding or closing dates. Local authority grants can run out of money quickly.
Next steps:
- Check your eligibility using online tools or contact your council
- Get quotes from certified installers
- Compare grant options and financing
- Book your free home assessment
Want personalised advice? Contact Greener Homes today. Our experts can guide you through the entire process, from checking eligibility to installation and beyond.
The combination of government grants, 0% VAT, and long-term savings makes 2025 an excellent time to invest in solar panels. With the right support, you could be generating clean energy and saving money within weeks.
Want personalised advice? Contact Greener Homes today. Our experts can guide you through the entire process, from checking eligibility to installation and beyond.
The combination of government grants, 0% VAT, and long-term savings makes 2025 an excellent time to invest in solar panels. With the right support, you could be generating clean energy and saving money within weeks.
