How to afford solar panels: realistic grants and financing options
If you’ve seen ads promising free solar panels or government-backed grants that cover the full cost of going greener, you’re not alone. Social media is full of offers that sound too good to be true – and that’s because, for most people, they are.
A lot of solar grants in the UK are contingent on your housing status or income, so they probably don’t apply for the majority of homeowners. And some ‘solar grants’ are scams to be avoided entirely. But don’t let that put you off making a wise investment. If you’re considering solar panels, we share how to afford them.
Can I get ‘free solar panels’ from ads I’ve seen online?
Schemes like ECO4 and the Warm Homes Plan are real – but they’re not designed for most homeowners. These government-funded grants focus on supporting households with low incomes, those receiving specific benefits, or people living in social housing. Even then, they’re only accessible through a small number of approved contractors; the eligibility criteria can be quite narrow and Good Energy isn’t part of these programmes right now.
If you aren’t eligible for those grants, you’re in the right place. Good Energy is actively exploring our own fair and transparent finance options to make solar panels an easy investment for all homeowners. And, in the meantime, you can explore what’s available in the UK right now to help make the upfront cost of solar panels more affordable, while feeling safe in the knowledge you’ll reap long-term benefits.
Are there any solar panel grant scams?
Unfortunately, there have been several solar panel scams over the years, which masquerade as realistic government communications addressed to ‘the homeowner’. One scam currently targeting UK homes is an organisation that calls itself the ‘Green Homes Scheme’ and claims to offer customers a £4,000 grant and a 10p uplift to Feed-in-Tariff payments if they use them to upgrade their solar panels. This is a scam that has been called out by Which?, and by multiple people on Trustpilot.
Which? share some brilliant advice about how to spot a scam, including avoiding communications that come out of the blue, with vague contact details or that pressure you to act quickly to get a deal.
0% VAT on solar panels and batteries
One of the most impactful savings available right now is the government’s 0% VAT rate on all home solar and battery installations. For a typical 4kW system with battery storage, that can knock around £2,850 off the total cost. The best part? It’s automatically applied when you install – no forms or applications necessary.
And here’s an industry secret most people don’t realise: EV chargers aren’t typically included in the 0% VAT scheme. But, if you install one at the same time as your solar panels or battery system – as part of a single, integrated install – you can unlock the same discount on that too. You won’t hear this from most providers, but hacks like this are built into how Good Energy design optimised green energy systems.
Renewable energy loans from reputable providers
Some mortgage providers now offer low-interest loans or additional borrowing options specifically for energy-saving home improvements, including solar panel installation. While availability depends on your lender and personal circumstances, it’s worth checking if your current provider supports green upgrades.
We always recommend doing your own research, but here are a few examples that could be relevant to you:
Nationwide 0% Green Additional Borrowing Mortgage
What it is: A mortgage top-up offering 0% interest for the first two or five years to help fund solar panels and other energy-efficient upgrades.
What’s available: Borrow £5,000 to £20,000 to cover the cost of solar panels (and other eligible upgrades).
Who’s eligible: Existing Nationwide mortgage customers (with at least one mortgage payment made).
Lloyds Eco Home Reward
What it is: A cashback incentive for Lloyds mortgage customers making eligible energy-efficient home improvements.
What’s available: £1,000 cashback for solar panel or battery installation.
Who’s eligible: Customers who have applied for a new Lloyds mortgage, taken out additional borrowing, or switched to a new mortgage deal since 31 July 2023, and who also have a Club Lloyds current account.
Barclays Greener Home Reward
Who’s eligible: Existing Barclays residential mortgage customers
What it is: A cashback reward for Barclays residential mortgage customers who complete eligible energy-efficient home improvements.
What’s available: £1,000 for Solar PV, solar hot water and battery storage.
Who’s eligible: Existing Barclays residential mortgage customers
Find the best rate for your export
By law, large energy suppliers have to pay you for the solar energy you export to the grid. It’s called the Smart Export Guarantee (SEG), and while it sets the rules, it doesn’t guarantee you a good rate.
That’s where export tariffs come in. These are the actual deals suppliers offer under the SEG – and with Good Energy, they’re among the best on the market. Our Solar Savings tariff pays 15p per kilowatt hour (kWh) for the energy you export. And if you get your solar panels and battery installed by us, you’ll unlock Solar Savings Exclusive, our fixed export rate of 25p/kWh for 12 months – one of the most generous rates available.
It’s a simple way to keep earning from your system long after it’s installed – and one more reason to choose an installer who’s with you for the long haul.
When it comes to solar installations for your home, don’t get caught chasing incentives that don’t apply to you. Focus on the savings you can trust, the support that lasts, and an installer that won’t let you down. Even without an upfront grant, the numbers still add up – especially when you know your solar system is performing at its best, every single day.
