Solar Grants UK 2026: ECO4, 0% VAT, Smart Export Guarantee

Since April 2022, residential solar, batteries and heat pumps in the UK attract 0% VAT (extended to March 2027). This is automatic — no application needed. It saves around 5% on a typical install.

All UK households with grid-tied solar can sign up for the SEG and be paid for every kWh exported. Octopus Outgoing typically leads on rate; expect 5-15p/kWh depending on tariff.

If you receive qualifying benefits (Universal Credit, Pension Credit, ESA, etc.) and your home has an EPC rating of D or worse, ECO4 grants can fund a substantial portion (sometimes 100%) of a solar install. We can check your eligibility in 5 minutes.

HUG2 supports low-income households not on the gas grid. In the South East this primarily covers rural Kent, Sussex Weald, Hampshire Downs and parts of Oxfordshire and the Isle of Wight. Where eligible, the grant can stack with ECO4 to fund insulation plus solar plus a heat pump in a single project. Administered by your local authority — we'll point you to the right application portal.

Not a solar grant, but worth mentioning because it complements solar perfectly: GBIS funds loft and cavity wall insulation for eligible homes in council tax bands A-D. A well-insulated home needs less electricity for heating water and supplementary warmth, which means your solar self-consumption rate rises and the battery payback shortens.

A handful of South East councils run their own zero-interest loan schemes for renewable installs — variously named Green Homes, Solar Together (a group-buying scheme run with iChoosr in Surrey, Hampshire, West Sussex and others), and county-level energy partnerships. The discount versus market price is typically 5-12%, with the trade-off that you have less choice over installer brand and timing.

Anything described as a 'government rebate', 'green homes grant' (that scheme closed in 2021), 'free solar panels in exchange for roof rental' (the old Feed-in Tariff rent-a-roof model — economically poor for homeowners), or 'manufacturer-backed cashback' is marketing, not government policy. Real grants are listed on gov.uk and administered through Ofgem-accredited installers; if you can't find the scheme on a .gov.uk URL, treat the claim with scepticism.

ECO4 and HUG2 both require a desktop check against benefit status, EPC rating and council tax band. We can run that check in about five minutes with a phone call. Smart Export Guarantee is simpler: any MCS-certified install up to 5 MW capacity qualifies; you choose a supplier (often Octopus, EDF, E.ON Next or British Gas), submit your MCS and DNO paperwork, and start being paid within 4-6 weeks of commissioning.