If you are installing solar panels on your UK home, you are not eligible for the US federal Investment Tax Credit. The UK has its own set of incentives. Here is what is currently available in 2026.
1. Smart Export Guarantee (SEG)
The Smart Export Guarantee requires licensed electricity suppliers to pay you for surplus solar electricity you export back to the National Grid. Tariffs vary by supplier; the better SEG tariffs sit in the 15p–25p per kWh range. Your installer will usually register your system with your chosen supplier.
2. 0% VAT on solar & battery installations
From April 2022 through March 2027, the UK government has reduced VAT on energy-saving materials, including solar panels, battery storage and air-source heat pumps, from 20% to 0%. Your installer should quote ex-VAT. A typical 4 kW domestic system costs £7,000–£10,000 after this saving.
3. ECO4 Scheme (for lower-income households)
ECO4 obliges large energy suppliers to fund energy-efficiency improvements for qualifying households. Solar PV is included. You may qualify if you receive Universal Credit, Pension Credit Guarantee Credit, ESA, JSA, Child Tax Credits, or several other means-tested benefits.
4. Home Upgrade Grant (HUG)
The Home Upgrade Grant supports households in England that are off the mains gas grid and have a low energy efficiency rating (band D–G). HUG can fund solar PV, insulation and heat pumps for eligible homes. Administered through local authorities.
5. MCS-certified installers
The Microgeneration Certification Scheme (MCS) is the UK standard for renewable energy installations. Most incentives above (including SEG) require your install to be carried out by an MCS-certified installer. Always verify MCS certification before signing a contract.
6. Regional & council schemes
Scotland: Home Energy Scotland Grant & Loan provides up to £7,500 (grant) plus £7,500 (interest-free loan) for solar PV. Wales: Nest provides free energy-efficiency improvements for qualifying households. Northern Ireland: NI Sustainable Energy Programme.
Need help finding an installer?
Browse our directory of UK solar installers by city to find a verified, MCS-eligible installer near you.