Government policy has played an important role in the growth of solar power in the UK. Support has changed considerably over time, moving from direct payments for generating renewable electricity towards export payments, targeted support for lower-income households and wider programmes designed to improve the energy efficiency of UK homes.

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The Feed-in Tariff – 2010 to 2019​

One of the most important developments in UK residential solar was the introduction of the Feed-in Tariff (FiT) in April 2010.

The scheme encouraged households and businesses to install renewable electricity technologies, including solar PV, by providing payments linked to the electricity they generated and exported.

FiT helped accelerate the adoption of residential solar across the UK as installation costs began to fall and increasing numbers of households considered generating their own electricity.

The scheme closed to new applicants in March 2019, although qualifying installations already registered under FiT can continue to receive payments under the terms of the scheme.

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The Smart Export Guarantee – from 2020

The Smart Export Guarantee (SEG) was introduced in January 2020.  Rather than paying households simply for generating solar electricity, the SEG allows eligible households to receive payments from participating electricity suppliers for electricity they actually export to the grid.

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Electricity suppliers set their own SEG tariffs, so rates and terms can vary between providers and change over time.

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Find out more about the Smart Export Guarantee →

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0% VAT on solar installations

Another significant incentive has been the reduction of VAT on qualifying energy-saving materials installed in homes.

Qualifying professionally installed solar panels and battery storage currently benefit from 0% VAT, subject to the relevant rules.

This reduces the upfront cost of installing solar compared with paying the standard rate of VAT.

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The current zero rate is scheduled to run until 31 March 2027, after which the applicable VAT treatment may change.

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Support for lower-income households

Government support has increasingly focused on helping lower-income households and homes with poor energy efficiency.

Previous programmes have included the Energy Company Obligation (ECO4) and Home Upgrade Grant Phase 2 (HUG2).

The support landscape is now changing as the government moves towards its wider Warm Homes Plan.

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In England, the Warm Homes: Local Grant provides funding through local authorities to improve eligible lower-income homes with an EPC rating between D and G.

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Depending on the property and household circumstances, improvements can include measures such as insulation, low-carbon heating and solar panels.

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Eligibility criteria apply and support can vary according to location and individual circumstances.

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The Warm Homes Plan

The government's wider Warm Homes Plan represents a significant shift in policy towards improving household energy efficiency and supporting technologies such as solar panels, batteries, insulation and low-carbon heating.

Rather than providing a universal grant for every homeowner wanting solar panels, much of the available government support is targeted towards households that meet specific income, property or energy-efficiency criteria.

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For most homeowners considering solar, the main financial benefits therefore continue to come from:

• Reducing the amount of electricity purchased from the grid

• Receiving payments for eligible electricity exported through the Smart Export Guarantee

• The current 0% VAT treatment on qualifying installations

• Using battery storage to make greater use of electricity generated at home

• Any grants or local support schemes for which the household qualifies

 

Solar power in the UK today

The UK solar market has grown dramatically since the introduction of the Feed-in Tariff in 2010.  Solar is now a mainstream home energy technology, with record numbers of installations taking place across the UK in 2026.

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Nearly 172,000 solar installations were completed between January and July 2026, across homes, businesses and larger projects, with rooftop solar accounting for more than seven in ten installations during July.

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Alongside conventional rooftop solar, battery storage is becoming increasingly popular and new technologies such as plug-in solar are expanding the ways households can generate electricity at home.  Government policy continues to evolve, so homeowners should check the latest eligibility requirements and available support before making a decision.

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Can I get a government grant for solar panels?

There is currently no universal government grant available to every UK homeowner simply for installing solar panels.

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However, some households may qualify for support through government-funded or locally administered schemes, particularly where household income and the property's energy efficiency meet the relevant criteria.

 

Because eligibility and funding can change, it's important to check the latest schemes available in your area rather than assuming that a particular grant will apply.