Solar Panel Grants and Incentives Available in the UK in 2026
One of the most common questions we receive at ALPS Electrical is whether there are any grants available to help with the cost of solar panels. While the old Feed-in Tariff scheme closed in 2019, there are several financial incentives and funding programmes available in 2026 that can significantly reduce the cost of going solar.
This guide covers every grant, incentive and funding option currently available to homeowners and businesses in the UK, with a particular focus on what is accessible in the North East.
0% VAT on Solar Panels
The single most significant financial incentive for residential solar is the 0% VAT rate. Since April 2022, all residential solar panel installations, battery storage systems and related equipment are subject to 0% VAT rather than the standard 20%. This effectively gives you a 20% discount compared to the old pricing structure.
The 0% VAT rate applies to the full installation including panels, inverters, batteries, mounting hardware, cabling and labour. It applies to both new builds and existing properties. The government has confirmed this rate will remain in place until at least March 2027, and it is widely expected to be extended further as part of the UK's net zero commitments.
Smart Export Guarantee (SEG)
The Smart Export Guarantee requires energy suppliers with 150,000 or more customers to offer a tariff for electricity you export to the grid from your solar panels. While rates vary between suppliers, typical SEG rates in 2026 range from 4p to 15p per kWh exported, with some agile tariffs paying significantly more during peak demand periods.
To qualify for SEG payments, your solar installation must be MCS certified, which is standard for all ALPS Electrical installations. We register your system with your chosen SEG provider as part of our service.
ECO4 Scheme
The ECO4 scheme (Energy Company Obligation) can provide free or heavily subsidised solar panels and insulation for households that meet certain criteria. You may qualify if you receive certain means-tested benefits and your property has a low Energy Performance Certificate rating. ECO4 is funded by energy suppliers and delivered through approved installers.
Eligibility depends on your income, benefits status and property type. Contact your local authority or an approved ECO4 installer to check whether you qualify. At ALPS Electrical, we focus on private installations rather than ECO4, but we are happy to point you in the right direction if you think you may be eligible.
Great British Energy
Great British Energy is the government's publicly owned clean energy company launched in 2025. One of its key programmes is the Local Power Plan, which aims to support community energy projects and help schools, hospitals and community buildings access solar panel funding. For schools in particular, this creates new funding pathways when combined with Salix Finance loans. Read our detailed guide on school solar panel funding for more information.
Local Authority Grants and Schemes
Several North East local authorities operate their own solar panel grant or loan schemes. Availability changes frequently, so it is worth checking with your local council. Authorities including Stockton-on-Tees, Middlesbrough, Durham County Council and Newcastle City Council have all run energy efficiency programmes in recent years.
Capital Allowances for Businesses
Businesses installing commercial solar panels can benefit from the Annual Investment Allowance, which allows the full cost of solar installations to be deducted from taxable profits in the year of purchase. For farms, this is particularly valuable. See our guide on solar panels for farms for more details on the financial benefits for agricultural businesses.
What About Free Solar Panel Schemes?
You may see adverts for free solar panel installations. These typically involve a rent-a-roof scheme where a third party installs panels on your property, keeps the generation benefits, and you receive a small discount on electricity. We generally advise against these arrangements as the financial benefit to the homeowner is minimal compared to owning your own system, and they can complicate property sales.
How ALPS Electrical Can Help
We ensure every customer receives all the financial benefits they are entitled to. Our installations are MCS certified (required for SEG payments), we apply the 0% VAT rate automatically, and we handle all DNO notifications and G99 applications. Contact us for a free quote that includes a full financial analysis showing your projected savings, payback period and return on investment.