Thinking of switching to solar energy? The UK government offers several incentives, grants, and financial schemes designed to make photovoltaic (PV) systems more affordable and rewarding.

From the Smart Export Guarantee (SEG) to the ECO4 Scheme, homeowners can offset installation costs and earn for the energy they produce.

At Renewables UK, we help you understand and apply for the right programmes to maximise your solar investment.

🔹 1. Smart Export Guarantee (SEG)

The Smart Export Guarantee is a UK-wide initiative that pays you for exporting surplus electricity back to the National Grid.

💡 How It Works

• Your PV system generates electricity during the day.

• Energy not used by your home is sent to the grid.

• Licensed suppliers (e.g., Octopus, EDF, E.ON) pay you per kWh exported.

🧾 Requirements

• MCS-certified installation.

• Smart meter capable of half-hourly export readings.

💷 Typical Tariffs (2025)

🔗 Learn about the installation standards in our Solar Installation Guide.

🔹 2. ECO4 Scheme (Energy Company Obligation Phase 4)

(Frame: Subsidy_Frame)

The ECO4 Scheme helps low-income or vulnerable households improve their home’s energy efficiency.

✅ Eligible Improvements

• Solar PV systems

• Heat pumps

• Insulation upgrades

📋 Eligibility Criteria

• Homeowner or private tenant in England, Scotland, or Wales

• Receiving certain benefits (e.g. Universal Credit, Pension Credit, Child Tax Credit)

• Poor EPC rating (E, F, or G)

⚙️ Administered by Ofgem, funded through energy suppliers.

🔹 3. Home Upgrade Grant (HUG)

(Frame: Regional_Policy_Frame)

The Home Upgrade Grant (HUG) is available via local councils in England.
It supports off-gas-grid homes with energy upgrades, including solar panels and insulation.

🏠 Key Details

• Covers up to 100% of installation cost for qualifying homes.

• Focused on low-income, poorly insulated properties.

• Operated through regional energy hubs.

💬 Contact your local council or visit gov.uk to check availability.

🔹 4. VAT Zero Rate on Solar Installations

(Frame: Taxation_Frame)

Since April 2022, homeowners in the UK benefit from a 0% VAT rate on:

• Solar panels

• Battery storage systems

• Heat pumps

This incentive is in effect until March 2027, reducing the total installation cost by up to 5% compared to pre-2022 prices.

🧾 Valid for residential properties only.

🔹 5. Smart Meter & Energy Data Benefits

(Frame: Technology_Policy_Frame)

Installing a smart meter alongside your PV system allows accurate tracking of generation, usage, and exported energy.

Smart data enables:

• Automatic SEG payments

• Energy-saving recommendations

• Optimised battery charging

🔗 Explore the How Photovoltaic Panels Work page for system integration details.

🔹 6. Regional & Local Authority Grants

(Frame: Geographic_Policy_Frame)

Some councils offer localised solar incentives under climate action plans.

Examples include:

• Greater Manchester Green Homes Grant (energy upgrades for low-income homes)

• London Solar Together (group-buying discounts for residents)

• West Midlands Net Zero Grants (business + residential support)

📍 Contact your local authority or energy hub to explore regional funding options.

🔹 7. Commercial & Community Solar Support

Businesses and community organisations can claim tax relief and grants under:

• Enhanced Capital Allowances (ECA)

• Smart Export Guarantee for Businesses

• Local Enterprise Partnerships (LEPs) funding schemes

💼 We assist schools, farms, and SMEs in developing high-efficiency commercial solar systems.

🔹 How to Apply for UK Solar Grants

1. Get a free quote and home survey by an MCS-certified installer (like Renewables UK).

2. Check eligibility for ECO4 or HUG via your local council.

3. Register your system for SEG payments.

4. Submit supporting documents to Ofgem or supplier.

✅ Our experts can handle the full application process for you.

👉 Get a Free Quote & Eligibility Check