UK Solar Panel Grants Calculator

Calculate available grants (ECO4, HUG2), your net system cost, and annual SEG income. Find out if solar makes financial sense for your home.

£
£
kWh/yr
£
Net cost after grants
£8,000
Gross system cost£8,000
Grant amount−£0
Annual SEG income£100/yr
Total annual benefit£700/yr
Payback period11.4 years
Important: ECO4 and HUG2 grants are means-tested and property-specific. Eligibility depends on household income, EPC rating, and local authority area. Speak to a registered MCS installer or your local council for confirmation.

How to Use This Calculator

Enter your system cost

Start with the total installed cost of your solar system — panels, inverter, mounting hardware, and installation labour. UK solar prices in 2026 average £1,400–£1,800 per kW installed, making a typical 4 kW residential system £6,000–£9,000. Since April 2022, solar panels and battery storage are zero-rated for VAT (0%), so there's no need to subtract VAT separately.

Select your available grants

Choose any government grants you may be eligible for. The calculator pre-fills estimated grant amounts based on programme averages — use the custom grant amount field to enter a confirmed figure. Grant eligibility is strict and property-specific; see the FAQ below for details on each scheme.

Enter your SEG rate

The Smart Export Guarantee (SEG) replaced the old Feed-in Tariff in 2020. Under SEG, licensed electricity suppliers with 150,000+ customers must offer a tariff for exported solar electricity. Rates vary from 4p to 15p/kWh depending on the supplier. Use the More options section to input your expected annual export and bill savings for a complete payback calculation.

UK Solar Grant Schemes (2026)

ECO4 (Energy Company Obligation)

ECO4 is the UK government's main energy efficiency scheme, obligating larger energy suppliers to fund improvements in low-income and fuel-poor homes. Solar panels can be included under ECO4 as part of a broader retrofit package. Eligibility requirements:

Home Upgrade Grant (HUG2)

HUG2 provides grants for energy efficiency and low-carbon heating in low-income homes that are not connected to the gas grid. Solar PV is an eligible measure. Key details:

Great British Insulation Scheme (GBIS)

Primarily covers insulation, but homes receiving insulation upgrades under GBIS may qualify for combined packages including solar from other schemes.

Local Authority Grants

Many councils offer additional solar grants funded through the UK Shared Prosperity Fund, Warm Homes Local Grant, or Scottish/Welsh devolved programmes. Check with your local council's energy efficiency team.

0% VAT on Solar

While not a grant, the removal of VAT on residential solar panels (0% since April 2022, extended through 2027) saves approximately £600-£900 on a typical 4 kW system. This is already factored into quoted prices.

Smart Export Guarantee (SEG)

The SEG requires Ofgem-licensed electricity suppliers with 150,000+ customers to pay solar owners for electricity exported to the grid. Key facts:

Example

The Patel family — Manchester, England

The Patels receive Universal Credit and have an EPC D-rated home. They're getting a 4 kW solar system installed under ECO4 with council support. The system costs £8,500 installed, and they've been confirmed for a £5,000 ECO4 grant. They're signing up for Octopus Outgoing at 15p/kWh SEG.

System cost (installed)£8,500
ECO4 grant−£5,000
Net cost£3,500
Annual export (est.)1,800 kWh
SEG rate15p/kWh
Annual SEG income£270
Annual bill savings£550

Result

Total annual benefit£820/yr
Payback period4.3 years
25-year net saving~£17,000

With the ECO4 grant reducing the net cost to £3,500, the Patels achieve payback in just 4.3 years. Over 25 years, the system is projected to save the family approximately £17,000 in energy costs (assuming modest 3% annual electricity price increases).

FAQ

ECO4 eligibility requires your household to receive qualifying means-tested benefits (Universal Credit, Pension Credit, Child Tax Credit, Working Tax Credit, Housing Benefit, or Income-related ESA/JSA) AND your property to be EPC band D or below. Solar panels can be included as part of an ECO4 package but are typically secondary to insulation or heating measures. Contact your energy supplier or an MCS installer who handles ECO4 to check eligibility.
The SEG requires your solar system to be MCS-certified and your home to have a smart meter that records half-hourly export data. Apply directly to any Ofgem-licensed SEG-obligated supplier — you don't have to use your current electricity supplier for SEG payments. Compare rates on Ofgem's SEG comparison page or uSwitch. Once approved, you'll receive credits on your bill monthly or quarterly.
Free solar panels are available for eligible households under ECO4 — typically those on qualifying benefits with poor EPC ratings. Outside of ECO4, some local authority schemes in Wales and Scotland offer heavily subsidised or free panels. Be very cautious of companies advertising "free solar" via rent-a-roof or lease schemes where the company owns the panels — these can complicate selling your home and limit your financial benefits. Always check the Solar Trade Association (STA) or MCS for vetted installers.
Yes — the average UK household self-consumes 40-50% of solar production without a battery, saving roughly £400-£700/year. A battery increases self-consumption to 70-85% and can add £200-£400/year in additional savings, but typically costs £3,000-£5,000 to add. With electricity prices at 24-28p/kWh, solar without a battery still typically achieves 8-12 year payback in most UK locations — well within the panel's 25-year life.

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