More UK homeowners are turning to solar panels as a smart way to fight rising energy bills, gain independence from the grid, and reduce their carbon footprint. It’s an investment that can pay off over time, but let’s be honest: the upfront cost can feel like a major roadblock.
The good news? Help is available. From government grants and flexible loans to money-saving group-buying schemes like Solar Together, there are now more ways than ever to make solar power affordable.
This guide breaks down your options — what support is available in 2025, who qualifies, how to compare your choices, and which route might be best for you.
This content is for general information purposes only. It does not constitute personalised financial advice or a financial promotion as defined under the Financial Services and Markets Act 2000. Solar Together does not offer or arrange loans or mortgages, and we do not endorse or recommend any specific financial products or providers. Always seek impartial, FCA-authorised financial advice before making decisions about loans, mortgages, or financial arrangements.
What This Guide Covers:
- Government grants for solar panels in the UK — and who’s eligible
- Smart ways to finance your system through banks and lenders
- How group-buying schemes like Solar Together help you save
Solar Together is a group-buying scheme for solar panel and battery installations. This article is published by Solar Together to help homeowners understand their options. While we aim to provide impartial information, please be aware that Solar Together may be one of the schemes referenced.
Government Grants for Solar Panels in the UK: Who Gets Help and How?
The UK government offers various grants and schemes to make solar panels accessible, but not everyone qualifies. These programmes mainly aim to support low-income households or those living in less energy-efficient homes.
Is there a solar electricity grant available in the UK?
Yes. While there isn’t a specific scheme by that exact name, the term usually refers to government-funded programmes or local council grants that help cover the cost of installing solar panels and generating clean electricity.
• Energy Company Obligation (ECO4)
The ECO4 scheme helps low-income households across England, Wales, and Scotland by offering grant money for solar panels and other energy-saving improvements. If you qualify, you might get solar panels installed for free or at a much lower cost. Eligibility usually depends on your income, benefits, and your home’s energy efficiency. If your household qualifies, ECO4 can help cover the full cost of solar panel installation, insulation, and other improvements. But the criteria can be strict, and not everyone will meet them.
What if you almost qualify? Look into the LA Flex Scheme.
Some homeowners may also qualify for a solar panel subsidy through local government partnerships. If you’ve been turned down for ECO4, or you're not receiving benefits but still struggling with energy costs, LA Flex might be your route to free or subsidised solar panels.
LA Flex (Local Authority Flexibility Scheme) is a special extension of ECO4. It gives your local council the power to widen eligibility to include:
- Households with modest incomes
- Homes where someone has a health condition affected by cold
- Residents who don’t get benefits but are still struggling with energy bills
What to do: Contact your local authority and ask if they’re participating in LA Flex. Not every council offers it, but many across England, Wales, and Scotland do.
• Warm Homes: Local Grant (Launching 2025)
This is a newer programme run by local councils in England. It’ll offer funding for solar panels and other energy-saving improvements, but only for eligible homes. Managed by local councils, this new initiative will offer energy performance upgrades, including solar panel funding, for eligible households in England. Check with your council for updates.
• The Solar Together Scheme
Many councils are partnering with Solar Together, a group-buying scheme designed to help homeowners save money. The scheme gives you access to vetted installers who compete to offer their best value, saving you money and the hassle of searching and comparing quotes. The scheme only runs for a limited time in each region. You can register your interest to be notified when a scheme becomes available in your area.
What About Support in Scotland, Wales, and Northern Ireland?
Some regions offer extra schemes on top of ECO4:
- Scotland:
Home Energy Scotland offers grants and loans up to £7,500 for solar panels and battery storage. Plus, ECO4 Scotland brings more free solar panel help starting 2024. - Wales:
The Ynni Cymru Capital Grant helps fund smart local energy projects, including solar. ECO4 Wales also offers grants to eligible homes. - Northern Ireland:
The Sustainable Energy Programme gives grants to businesses upgrading their energy, and there are capital grants up to £150,000 for solar investments.
Tip: Always check with your local authority — grant schemes change year to year and may have limited funding.
Can You Get a Grant for Solar Panels? What Makes You Eligible
Not everyone can get these grants — they’re mostly for households with lower income or homes that need energy improvements. Some typical requirements are:
- Owning your home (or getting landlord permission if renting)
- Having an Energy Performance Certificate (EPC) rating of D or below
- Living in a council or region offering specific grants
- Low household income or receiving certain benefits
Your best first step is to check your local council’s website or http://GOV.UK for the latest rules and schemes available near you.
If You Don’t Qualify for Grants — How to Finance Your Solar Panels
Some lenders offer loans or mortgages for eco-home improvements. These may include interest-free periods or incentives — though terms vary. It’s important to compare offers and seek independent financial advice. To verify a lender or adviser’s FCA authorisation, visit the FCA Register.
Financing Options for Solar Panels
Don’t worry if grants aren’t an option. There are lots of ways to finance solar panels that spread the cost over time.
Green Loans & Green Mortgages: Are They Worth It?
Many banks and lenders offer special loans designed for eco-friendly home improvements, including solar panels. Before you sign up, here’s what to keep in mind:
- Check the Interest Rates and APR Carefully
Some lenders may offer loans for eco-friendly home improvements with promotional interest rates, such as 0% for an introductory period. However, these are limited-time offers and may be followed by standard interest rates. Always compare the total cost of borrowing (APR) and consult an authorised adviser before proceeding. - Look at Loan Terms
How long is the loan for? Shorter loans mean higher monthly payments but less interest overall, while longer loans reduce monthly costs but can add up more in interest. Find a term that fits your budget comfortably. - Consider Early Repayment Options
Can you pay off the loan early without fees? This flexibility can save you money if you get extra funds later. - Compare Green Mortgages vs Personal Loans
Some green mortgages include incentives such as cashback, but these vary widely. Personal loans can be faster but may have higher rates. Carefully check terms, conditions, and eligibility criteria with the lender or a qualified financial adviser. - Partnered Installer Schemes
Some lenders work with trusted solar installers to offer discounts or simplified quotes. This can take the guesswork out of shopping around, but always check reviews and make sure the installer fits your needs.
Council-Backed Loans: Affordable Solar Panel Financing
Some council-backed schemes work with lenders who offer fixed-rate loans at lower interest rates than typical commercial options. These may have additional consumer protections, but they’re still financial agreements and should be reviewed carefully. It’s an option for households who want to invest in solar but need support to spread the cost. Visit your council’s website to see if a loan scheme is available in your area.
Before taking out any loan or mortgage, check that the lender is authorised and regulated by the Financial Conduct Authority (FCA). You can verify this at register.fca.org.uk.
Not Sure a Bank Loan is for You? Here’s What Else to Consider
If the bank route feels overwhelming or not quite right, here are other financing paths many UK homeowners take:
1. Solar Panel Finance from Energy Suppliers
Energy providers offer in-house financing when you buy solar panels from them.
- Pros: Often come with 0% interest deals over 12–36 months.
- Cons: You're usually tied to their specific equipment and installers.
Buyer’s tip: Ask about the length of the warranty, installer certification (like MCS), and what happens if you sell your house during the repayment period.
2. Remortgaging to Fund Solar
Some homeowners choose to release equity from their mortgage to pay for solar upfront.
- Pros: Likely to offer a lower interest rate than a personal loan.
- Cons: You're extending your mortgage term and increasing your total repayment.
Good if: You’re already planning to remortgage or make home improvements and want solar included in the package.
3. Using Savings (If You Can)
This is still the most cost-effective route. No fees, no interest, and you can start saving on your energy bills right away.
Plus: Some installers offer a small discount if you pay in full.
Final Advice Before You Commit to Financing
- Compare like-for-like quotes. Don’t just go with the first installer linked to a bank or supplier — shop around to see how their price and warranties stack up.
- Understand repayment terms. Look beyond monthly payments. Ask: “What’s the total I’ll repay, and is there a penalty for early repayment?”
- Check if you can claim VAT relief. As of 2025, VAT on solar panel installations in the UK is 0% — but this only applies to supply and install bundles, not separate purchases.
Still not sure where to start?
Solar Together makes it easy to join a trusted, group-buying scheme for solar panels and battery storage.
Register your interest today and find out how much you could save.
How Can You Pay for Solar Panels? Your Options Explained
If you don’t qualify for a government grant — or you're not sure yet — the good news is that solar panels can still be affordable. From personal savings to green loans and buy-now-pay-later schemes, there are flexible ways to spread the cost and make the switch to solar work for your budget.
These are provided at the supplier’s discretion and may be subject to terms, credit checks, or eligibility requirements. Always check directly with the provider.
Here’s a breakdown of the main ways UK homeowners are paying for solar panels in 2025 — and how to figure out which one’s right for you.
Pay a Deposit, Then Spread the Rest
Many installers let you secure your system with a 10–20% deposit, then spread the rest of the cost over a few months or years. This option works well if you don’t have the full amount upfront but want to get started.
Why choose this?
- You can get installation booked in with a relatively low initial payment
- Ideal for people who expect income or savings to come in soon
- May offer more flexibility than traditional loans
Look out for:
- Whether the remaining payments are interest-free
- Any admin or setup fees
- Payment schedule and whether it works with your budget
Pay in Full (If You Can)
If you’ve built up savings, paying the full amount upfront is often the cheapest option long-term. You avoid any interest charges, and some suppliers offer discounts or extra perks for full payment.
Why choose this?
- No loan, no interest, no ongoing repayments
- You own the system outright from day one
- Maximise long-term savings
Look out for:
- Installer incentives or discounts for upfront payment
- A solid, trusted installer with guarantees and aftercare
Pay Monthly (Green Loans or Supplier Finance)
Many banks now offer green home improvement loans, and several major energy companies and solar installers offer their own payment plans. This lets you spread the cost over several years — often with 0% interest for a limited time.
Why choose this?
- Low or no upfront cost
- Makes solar affordable for most households
- Quick approval in many cases
Look out for:
- APR and total cost of borrowing
- Whether the installer adds a markup for financed deals
- Repayment terms and monthly affordability
Deferred Payments (Buy Now, Pay Later)
Some suppliers offer buy-now-pay-later schemes, where you can get your system installed now and start payments later — often after 6 or 12 months. This can be useful if you’re waiting for a bonus, inheritance, or savings to build up.
Why choose this?
- Get the benefits of solar right away
- Delay payments until your finances are ready
- Useful if you’re also applying for a grant or government support
Look out for:
- When interest kicks in — and how much
- Whether there are early repayment fees
- Any impact on your credit score
What’s Right for You?
| If you... | Then consider... |
|---|---|
| Have savings and want the best deal | Pay in full upfront |
| Need flexibility and lower entry costs | Deposit + payment plan |
| Want to borrow responsibly over time | Green loan or 0% finance |
| Expect your financial situation to improve soon | Buy now, pay later |
Whichever option you choose, make sure you:
- Compare multiple quotes (Schemes like Solar Together can help)
- Check the installer is MCS-certified (required for SEG payments)
- Ask about warranties, maintenance, and post-installation support
Ready to explore your options? You don’t have to commit yet — but taking that first step could bring you closer to cleaner energy and lower bills.
Group-Buying Schemes: Why Solar Together Makes Sense
Solar Together helps homeowners join forces and negotiate better deals on solar panels and battery storage. Here’s why many people choose it:
- Better Prices: Group buying means installers compete, so you get a fair, often lower price.
- Trusted Installers: Only vetted installation companies participate, reducing risk.
- Simple Process: Solar Together handles quotes and installation, so you don’t have to shop around.
If you want an easy way to save money and stress, joining Solar Together is a smart move.
So… Should You Get a Grant, Finance, or Pay Upfront?
The answer depends on your personal situation. Here’s a simple comparison:
| Consideration | Grants | Financing | Paying Upfront |
|---|---|---|---|
| Best for | Low-income or eligible homes | Those who want to spread the cost | Homeowners with savings |
| Upfront cost | Low or none | Deposit + monthly payments | Full payment |
| Savings potential | High if fully funded | Medium (due to interest) | Highest (no loan fees) |
| Ease of access | Can be complex or limited | Flexible and widely available | Immediate but costly |
When choosing, think about:
• Your household income
• Available savings
• Your eligibility for solar panel grants UK-wide
• Long-term savings from self-funding versus financing
Conclusion
There are more ways than ever to make installing solar panels affordable — whether through government grants for solar panels in the UK, solar panel financing, or group-buying schemes like Solar Together.
Next Steps: Start Your Solar Journey
Ready to take the next step towards clean, affordable energy?
• Check your eligibility for grants like ECO4 or regional schemes through your local council or GOV.UK.
• Compare financing options from banks and energy suppliers to find the best fit for your budget.
• Join a group-buying scheme like Solar Together to access competitive prices for solar panels and battery storage.
• Learn more about costs and savings by visiting our Solar Panel Cost and ROI Guide and Battery Storage Costs and ROI Guide.
Every home and business is different — but with the right financial support, solar energy can be more accessible than you might think!
Frequently Asked Questions About Solar Panel Grants and Financing
Yes, through schemes like ECO4 and upcoming programmes like Warm Homes: Local Grant, as well as regional grants across Scotland, Wales, and Northern Ireland.
If you’re eligible, some schemes offer fully funded solar panel installations.
Grants and subsidies both help reduce the cost of installing solar panels — but they work in slightly different ways.
A grant is usually a lump sum of money provided by the government or a local authority to help cover all or part of the installation cost. If you're eligible, you may receive this support upfront or shortly after the system is installed. Some grants, like those from the ECO4 scheme or Home Energy Scotland, can fully fund your solar panels, meaning you pay nothing.
A subsidy, on the other hand, often means an ongoing financial incentive or partial discount. For example, the government might reduce the cost of installation through schemes like 0% VAT or offer payment for any extra energy you export to the grid (via the Smart Export Guarantee). These don’t always cover upfront costs directly, but they help make solar more affordable over time.
In short:
Grants = upfront funding (often full or partial)
Subsidies = financial support or savings applied over time
You may be eligible for one or both — it depends on your income, home energy rating, and where you live.
Some UK energy suppliers and banks offer solar panel financing options to their customers. These may include interest-free instalments or bundling with other services. Always review the terms carefully and check if the provider is FCA-regulated.
Solar Together is a group-buying programme helping homeowners and businesses secure competitive pricing for solar PV and battery storage installations.
Eligibility is based on factors like income, EPC rating, and location. Check scheme details or speak to your local council.