Solar panel grants and loans in England (2026)

The short version

• Everyone: no VAT on home solar panels and batteries until 31 March 2027.
• Lower-income households: the Warm Homes: Local Grant, run by councils, can pay for solar panels in full.
• All homeowners, coming soon: low and zero-interest government loans under the Warm Homes Plan.
• Once installed: get paid for the power you export through the Smart Export Guarantee.

0% VAT on solar panels and batteries

Installing solar panels or a battery in a home in Great Britain is charged at 0% VAT. This applies to everyone, with no application, and it comes off your quote automatically. It is due to end on 31 March 2027, so a system installed after that date is likely to cost more.

The Warm Homes Plan

The government published the Warm Homes Plan on 21 January 2026. It is a £15 billion programme to upgrade homes in England by 2030, with a big focus on solar panels, batteries and heat pumps.

For solar, the two parts that matter most are:

• Low and zero-interest loans for homeowners, whatever their income, to spread the cost of panels and batteries. About £2 billion has been set aside. Details of who can apply and how are due to be published later in 2026.
• Fully funded upgrades for low-income homes, delivered through councils (see below).

A new Warm Homes Agency is being set up to run the programme. We will update this page as the loan details are announced.

Warm Homes: Local Grant

This grant is for lower-income households in England and is run by local councils. It can cover solar panels along with insulation and low-carbon heating, often at no cost to you. In general you may qualify if:

• you own your home or rent from a private landlord, and
• your household income is below about £36,000 a year, you receive a means-tested benefit, or you live in an eligible low-income area, and
• your home has an energy rating (EPC) of D to G.

The exact rules and what is on offer differ between councils, and not every council is taking part. Contact your council or check GOV.UK to find out what is available where you live.

Smart Export Guarantee

Large energy suppliers must offer a tariff that pays you for electricity you send back to the grid. You need an MCS-certified installation and a smart meter. Rates vary a lot between suppliers. Read our export tariffs guide.

Heat pumps: Boiler Upgrade Scheme

Not for solar, but worth knowing: the Boiler Upgrade Scheme gives £7,500 towards an air source or ground source heat pump. Solar and a heat pump work well together. See our guide.