Is there a government grant for solar panels?
No direct universal grant exists in 2026 for solar panel installation. The old Feed-in Tariff closed to new applicants in 2019. But several schemes effectively reduce the cost:
- 0% VAT on solar panels. Since April 2022, residential solar installations carry zero VAT (previously 5%). On a £6,000 system, that saves you £300 versus the old rate.
- Smart Export Guarantee (SEG). Energy suppliers pay you 4–15p per kWh for surplus electricity exported to the grid. Over 25 years, that's £2,000–£8,000 in earnings. See our full SEG guide.
- ECO4 scheme. Low-income and vulnerable households can get free or heavily subsidised solar panels through the Energy Company Obligation. Eligibility depends on benefits, income, and EPC rating.
- Home Upgrade Grant (HUG2). For off-gas-grid homes with EPC ratings of D, E, F, or G. Grants up to £10,000 for energy efficiency measures including solar panels.
Leeds-specific funding
Leeds City Council has participated in several regional solar schemes. The Solar Together Yorkshire group-buying scheme runs periodically, offering pre-negotiated prices 20–30% below market rate through collective purchasing power. Check the Leeds City Council website for the next round.
West Yorkshire Combined Authority also runs energy efficiency programmes that occasionally include solar panel subsidies for qualifying households. The cost of solar in Leeds is already 5–10% below southern England, so combined with these schemes, payback periods can drop to 5–6 years.
Who qualifies for free solar panels?
Free solar panels are available through ECO4 if you meet these criteria:
- Receive qualifying benefits (Universal Credit, Pension Credit, Child Tax Credit, etc.)
- Live in a property with an EPC rating of D, E, F, or G
- Own your home (or have landlord permission)
The installer handles the ECO4 application. It takes 4–8 weeks from application to installation. Not every installer participates, so check with your local company. Get quotes from Leeds MCS-certified installers and ask about ECO4 eligibility.
Green loans and finance
If you don't qualify for grants, several finance options exist:
- 0% interest credit cards. Some offer 24–30 months at 0%. A 4kW system at £5,500 spread over 24 months = £229/month.
- Solar-specific finance. Many MCS-certified installers offer 10–15 year finance plans at 3–7% APR.
- Green mortgages. Some lenders offer reduced rates or additional borrowing for energy-efficient home improvements.