| VAT on installing solar panels at home (HMRC) | 0% for installs from 1 May 2023 to 31 March 2027 |
|---|---|
| VAT from 1 April 2027 (HMRC) | 5% reduced rate |
| ECO4 end date (Ofgem) | 31 December 2026 |
| Great British Insulation Scheme (Ofgem) | Closed to new installations; ended 31 March 2026 |
| Warm Homes: Local Grant (DESNZ) | England only; April 2025 to March 2028 |
0% VAT on home solar
HMRC applies a zero rate of VAT to installing solar panels in a home. The rule is in VAT Notice 708/6. It covers installations from 1 May 2023 to 31 March 2027. From 1 April 2027, HMRC says the rate reverts to the 5% reduced rate. Therefore the date of your installation matters.
The relief covers photovoltaic panels with cabling, a control panel and an inverter. It applies to houses, flats and other homes. It also covers batteries from 1 February 2024, which our solar battery cost guide explains.
Who gets it
The zero rate applies to the service of installing, and to a business that supplies and installs the panels. However, HMRC says that selling energy-saving materials without installing them is standard-rated. So panels bought from a retailer alone do not qualify.
Extra work in the same job can still count. HMRC says an item that is ancillary to the install can form one zero-rated supply. A single price and a package sold together are signs of this.
In Northern Ireland, nidirect says the relief was extended under the Windsor Framework. Because of that, solar panels there now benefit from the zero rate.
What it means for your quote
DESNZ cost data includes VAT where it applies, and VAT rates change over time. Check that your quote shows VAT at 0%. Then see how it fits with what panels cost in the UK. If your install may slip past March 2027, ask your installer which rate applies.
There is no dedicated UK solar grant
Energy Saving Trust says there are no dedicated solar panel grants from the UK Government. However, you may get help through other schemes. They mostly target low-income households.
Check any offer before you sign. Our guide to deposit and payment checks explains what to ask about money paid upfront.
ECO4 and the Great British Insulation Scheme
The Energy Company Obligation (ECO4) is a Great Britain scheme that Ofgem administers on behalf of DESNZ. It applies to work installed from 1 April 2022 and runs until 31 December 2026, after a nine-month extension.
Ofgem says you could be eligible if you receive certain benefits, such as Universal Credit, Child Benefit or Pension Credit. Local councils can also refer households under ECO Flex, yet eligibility alone does not guarantee help. You must own the home or have your landlord’s permission.
However, GOV.UK adds an energy rating test. Owners need an energy efficiency rating of D to G. Private renters need E to G.
ECO is not a grant scheme, though. Ofgem says suppliers choose what to fund and how much, and you may be asked to pay towards the work. Eligibility does not guarantee an install. The GOV.UK page lists insulation and heating help, so do not assume solar panels are on offer.
Meanwhile, the Great British Insulation Scheme is closed to new installations. Ofgem says it began in April 2023 and ended on 31 March 2026.
Ofgem also says to agree to ECO work only once you have a contract. Check any installer on the TrustMark website, as ECO installers must be TrustMark accredited.
England: Warm Homes schemes
The Warm Homes Plan is a £15 billion programme, and it promises grants and loans for solar panels, batteries and heat pumps, plus direct support for low-income homes. The government says it aims to roll out its loan scheme in phases, so check what is open before you plan around it.
The live scheme for low-income homes is Warm Homes: Local Grant. DESNZ guidance (updated July 2026) says it runs from April 2025 to March 2028 and is delivered by local councils in England.
- Who qualifies. One of three routes: a home in a low-income postcode area, receipt of a listed means-tested benefit, or a household income below £36,000, adjusted for household makeup.
- Property. An energy rating of D to G, and the home must be owner-occupied or privately rented.
- Measures. Solar PV and domestic batteries are on the eligible list. A battery must go with solar panels, old or new.
- Cost to you. For owner-occupied homes, the upgrade should be fully funded.
Apply through your local council, not a cold caller.
Scotland: Home Energy Scotland
The Home Energy Scotland Grant and Loan is for homeowners in Scotland. Its current page lists grants and loans for heat pumps, heat network connections and insulation. For solar, it lists loans of up to £5,000 for solar thermal and for hybrid solar PV and water heating panels. It lists no funding line for ordinary solar PV or batteries.
Funding is first-come, first-served. Therefore works must not start before a written offer. See how solar quotes in Scotland compare before you decide.
Wales: Nest
Nest is a Welsh Government scheme. It says eligible households may get free improvements, including solar panels, heat pumps and insulation.
You must own your home or rent privately. You must receive a means-tested benefit or live in a low-income household. Your home must also have an energy rating of E or below, or D if someone has an eligible health condition. For local examples, read about solar quotes in Wales.
Northern Ireland
nidirect says there is no financial support for homeowners who want to generate their own electricity, such as with solar panels. Zero-rate VAT does apply. The Smart Export Guarantee does not cover Northern Ireland, because it is for Great Britain only.
Before you rely on a grant
Check what the scheme pays, who decides and when it ends, because rules change. Our guides on planning permission and network applications cover the other approvals. Moving soon? Read about selling a house with solar panels. If you plan to add storage later, see adding a battery to existing panels.