In 2026, the main financial support for solar and battery storage in the UK includes zero-rate VAT on residential installations, the Great British Insulation Scheme for eligible households, and the ECO4 scheme for low-income and fuel-poor homes. Scotland has its own Warmer Homes Scotland programme. There is no direct cash grant for residential solar in England for most homeowners, but the VAT exemption and Smart Export Guarantee (SEG) payments provide meaningful financial benefits.
Many people searching for solar and battery grants in the UK are surprised to find that the landscape has changed significantly since the days of the old Feed-in Tariff. This guide cuts through the confusion and explains exactly what financial support is available in 2026, who qualifies, and how to access it.
Zero-Rate VAT on Solar and Battery Storage
The most universally applicable financial benefit is zero-rate VAT. Since April 2022, the installation of solar panels, battery storage systems, and heat pumps in residential properties in Great Britain attracts 0% VAT, reduced from the previous 5% rate. This represents a saving of 20% compared to standard-rated products and is available to all homeowners regardless of income.
This applies to both the equipment and the installation labour, provided the installation is carried out by a VAT-registered contractor. If you buy equipment separately and hire separate tradespeople, the VAT treatment may differ, so always use an integrated installer where possible.
Smart Export Guarantee (SEG)
The Smart Export Guarantee is the successor to the old Feed-in Tariff export payments. Under SEG, licensed electricity suppliers with more than 150,000 customers are required to offer a tariff for the electricity you export to the grid from your solar panels.
SEG rates vary between suppliers, typically ranging from 3p to 24p per kWh exported depending on the tariff type and supplier. Octopus Energy's Outgoing Octopus tariff is consistently among the most competitive options.
To be eligible for SEG:
- Your solar installation must be under 5MW in capacity (easily met for residential)
- The system must have a smart meter installed
- The installation should be carried out by an MCS-certified installer
ECO4 Scheme
The Energy Company Obligation (ECO4) scheme runs until March 2026 and requires large energy suppliers to fund energy efficiency improvements for low-income and fuel-poor households. ECO4 primarily covers insulation and heating improvements, but solar panels can be included as part of a broader package for eligible properties.
Eligibility is based on receiving certain means-tested benefits including Universal Credit, Pension Credit, and others. Properties must also meet minimum energy efficiency criteria.
To apply, contact your energy supplier directly or use the government's Simple Energy Advice service to check eligibility.
Great British Insulation Scheme
The Great British Insulation Scheme (GBIS) targets homes in lower energy efficiency bands (EPC D or below). It primarily funds insulation measures rather than solar or battery storage, but improving your home's insulation before installing solar increases the return on your investment by reducing your overall energy demand.
Scotland: Warmer Homes Scotland
Scotland's Warmer Homes Scotland programme provides free energy efficiency improvements, including solar panels and battery storage, for eligible households. Eligibility is based on receiving certain qualifying benefits and living in a property with a poor energy efficiency rating.
The programme is administered by Home Energy Scotland, which also offers interest-free loans for energy efficiency improvements including solar installations for homeowners who don't qualify for free measures.
Home Energy Scotland Loans
Home Energy Scotland offers interest-free loans of up to £15,000 for energy efficiency improvements in Scottish homes, including solar panels, battery storage, and EV chargers. These are available to homeowners and some landlords regardless of income, making them one of the most accessible forms of support for solar in the UK.
Wales: Warm Homes Programme
The Welsh Government's Warm Homes Programme provides grants for energy efficiency improvements including solar and battery storage for eligible low-income households in Wales. Contact Nest (the Welsh Government's energy efficiency scheme) to check eligibility.
What About Battery Storage Specifically?
Standalone battery storage (not paired with solar) is treated differently for VAT purposes. From February 2024, battery storage systems installed alongside solar panels qualify for the zero VAT rate. Retrofit battery installations added to an existing solar system may also qualify, though the rules are more nuanced. Always confirm VAT treatment with your installer before purchasing.
Making the Most of Available Support
- Always use an MCS-certified installer to access SEG payments and maximise grant eligibility
- Get your home's EPC assessed before applying for any scheme, as your EPC rating affects eligibility for several programmes
- Check both your energy supplier's ECO4 offering and your local council's Home Upgrade Grant scheme, as council-administered grants vary by area
- In Scotland, always contact Home Energy Scotland first as they can advise on the full range of available support
