Renewable Energy

One great government scheme that was introduced to support households that install renewable heating systems is the Renewable Heating Incentive (RHI) scheme.

Who qualifies for free solar panel grants in the UK

Eligibility for solar panel grants in the UK can vary depending on the specific scheme or incentive. Here are some of the key criteria for different solar panel funding options:

Energy Company Obligation (ECO4)scheme (including LA Flex)

To qualify for a solar panel grant in the UK, eligibility criteria typically include having a household income of £31,000 a year or less, being a homeowner or private tenant, and meeting specific requirements under schemes like the ECO4 scheme.

To be eligible for the ECO4 solar panel grant, your property must have an EPC grade of E, F, or G.

These grants are designed to assist low-income homeowners and tenants in accessing solar panel funding options provided by the UK government.

If you receive any of the following benefits, you could be eligible for ECO4 funding:

  • Income-based Jobseekers Allowance (JSA)
  • Income-related Employment & Support Allowance (ESA)
  • Income Support (IS)
  • Universal Credit (UC)
  • Housing Benefit
  • Working Tax Credit (WTC)
  • Child Tax Credits (CTC)

The Child Benefit income threshold to qualify for ECO4 varies depending on how many children you have and whether you’re a single or two-parent household.

Home Upgrade Scheme (HUG2)

To be eligible for the Home Upgrade Grant (HUG), you must meet specific the below criteria:

Means–Tested Benefits or Household Income: You need to either claim one of the listed means-tested benefits or have a household income of £31,000 or less to qualify for funding

Low-Income Household: Eligibility is often based on being a low-income household.

Off the Gas Grid: The scheme targets households that are off the gas grid.

Energy Performance Certificate (EPC) Band: Eligible homes typically have an EPC between bands D and G.

Home Energy Scotland Grant and Loan Scheme

To be eligible for the Home Energy Scotland Grant and Loan, you must meet the following criteria:

Eligibility for Solar Panel Grants:

Homeowners: If you own the property you live in, you are eligible to apply for the grant and loan scheme.
Building Your Own Home: If you’re constructing your own home, you can apply for a loan specifically for renewable systems (such as solar panels), but not for other energy-efficient improvements.

Energy Company Obligation (ECO4)scheme (including LA Flex)

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The benefits of free solar panel grants include:

  • Cost Offset: Solar panel grants provide financial incentives that help reduce the upfront cost of installing solar panels, making renewable energy more accessible.
  • Energy Bill Savings: Households can save on energy bills by generating their own electricity. The ECO4 scheme, for example, can help reduce energy bills by up to £1,000 annually, and the least energy-efficient homes can save up to £1,600 annually.
  • Environmental Benefits: Solar panels reduce carbon emissions by generating clean electricity from sunlight, contributing to the UK’s net zero emissions goal.
  • Support for Vulnerable Households: The ECO4 scheme offers funding to low-income, fuel-poor, and vulnerable households, helping them to reduce their carbon footprint and save on energy bills.
  • Increased Property Value: Installing solar panels can increase the value of a property by improving its energy efficiency rating.
  • Smart Export Guarantee (SEG): Households can earn money by exporting surplus electricity back to the grid through the SEG, which can be claimed from the energy supplier.
  • Reduced Dependency on Grid: Solar panels decrease reliance on the energy grid, providing energy security and potential savings during energy price hikes.
  • Long-Term Investment: Despite the initial cost, solar panels are a long-term investment that can provide savings and benefits for many years.
  • VAT Reduction: The UK government announced a reduction of VAT for solar panels from 5% to 0% for a 5-year period, further reducing installation costs.
  • Wider Eligibility: The ECO4 scheme has broadened eligibility criteria, not just limited to household income or benefits, but also considering factors like age, health, and property condition.

These grants are part of the UK’s broader strategy to encourage the adoption of renewable energy sources and improve energy efficiency across the country.