Can You Qualify for Free Solar Panels in the UK?

Investing in renewable energy sources such as solar panels can significantly reduce your carbon footprint while also proving to be an excellent long-term investment in terms of saving money on energy bills. Many people are interested in installing solar panels, but the high initial cost of installation can make it unaffordable for some. So, is there such a thing as free solar panels in the UK? 

Energy Company Obligation Scheme (ECO4)

April 2022 – March 2026

The Energy Company Obligation (ECO), managed by Ofgem, is a UK government initiative aimed at improving energy efficiency in homes, with a focus on low-income and vulnerable households. It requires larger energy suppliers to provide energy-efficient measures, like solar panels, to eligible UK homes. Eligibility for ECO4 is determined based on specific benefits received, such as Income-based Jobseekers Allowance, Universal Credit, Pension Credit, and more. Additional Department for Work and Pensions benefits may also make households eligible, even if they don’t receive Universal Credit. The scheme primarily targets owner-occupied homes, but it can also support energy-inefficient social housing and privately rented properties with the owner’s consent.

An extension called LA Flex allows local authorities to identify households that may not meet national criteria but are low-income or at risk of fuel poverty, making them eligible for energy efficiency improvements, provided tenants have their landlord’s permission.

If qualified under ECO4 or LA Flex, homeowners could receive up to 100% funding for solar panels, making the adoption of renewable energy more accessible for eligible households in the UK. Apply directly with your energy supplier or check your eligibility by completing the ECO4 eligibility questionnaire. A surveyor will assess your premises to determine suitability for solar panels.

Solar Together:

Ongoing

Solar Together is a group-buying scheme that encourages homeowners to invest in solar panels. The scheme operates on a principle similar to bulk buying, where a group of homeowners who are interested in installing solar panels pool their resources to get a lower price. Solar Together partners with local authorities to run auctions, with the supplier offering the lowest price awarded the contract.

Smart Export Guarantee:

Ongoing

The Smart Export Guarantee (SEG) scheme, introduced by the UK government to replace the Feed-in Tariff scheme, came into effect on 1 January 2020. This scheme mandates larger energy suppliers to offer an export tariff to customers who generate their own renewable electricity through solar panels or wind turbines.

To qualify for the SEG scheme, homeowners must install solar panels or wind turbines with a capacity of up to 5kW. Additionally, they need to have an export meter installed and possess a Microgeneration Certification Scheme (MCS) certificate or an equivalent document. While not mandatory for eligibility, installing a solar storage battery is a great addition for those who prioritize eco-consciousness as it helps eliminate surplus waste.

To receive SEG payments, you need to apply to a supplier offering an SEG tariff, listed of Ofgem website. Your energy provider and SEG tariff supplier can be different companies. Suppliers in the SEG are obligated to offer a tariff, which can be fixed or variable. Keep in mind that tariffs may change, so regularly check if your tariff is still competitive. Homeowners with a storage battery or electric vehicle capable of importing and exporting electricity are eligible.

Zero VAT on solar panels

April 2022 – March 2027

From April 2022, the UK government introduced a new VAT policy aimed at promoting the adoption of renewable energy sources. Under the Zero VAT on Solar Panels initiative, the reduced VAT rate of 0% is applied to both the supply and installation of solar panels in England, Scotland, and Wales until March 2027. This means that homeowners can take advantage of significant cost savings, with installation costs being cut by up to 20%. This incentive aligns with the government’s green initiatives and aims to make investing in solar panels more affordable and accessible to all.

Other ways to fund solar panels:

Apart from the initiatives mentioned above, there are several other organizations that offer assistance in funding solar installations, with a specific focus on mortgage holders. Let’s take a closer look at some of these lenders:

Barclays Greener Homes

Register by 31 January 2024

Barclays has introduced the Greener Home Reward Scheme to support energy-efficient home improvements. This scheme is available to residential mortgage customers and aims to facilitate the installation of solar panels. Eligible registered customers can receive a financial incentive towards their solar panel installation. If homeowners have already installed and fully paid for their solar panel system, they can receive a cash reward of £1,000 under this scheme. It’s important to note that the solar installation should be carried out by a business registered with TrustMark to ensure quality.

Lloyds Bank Eco Home Reward

Register by 31 October 2023

If you have a Lloyds Bank mortgage, are applying for one, or borrowing funds for home improvements, you may be eligible to claim up to £500 cashback for a solar installation. After registering online or in person and confirming your eligibility, you can proceed with installing your solar panels through your chosen supplier. Once the installation is completed, you can claim your cashback.

Halifax Green Living Reward

Register by 31 October 2023

Existing Halifax mortgage holders, those in the process of applying for one, or those securing funds for home improvements can claim up to £500 cashback for installing solar panels. To take advantage of this offer, you need to register and verify your eligibility. After the installation is completed using your chosen supplier, you can claim your cashback.

Investing in solar panels is an excellent way to reduce your carbon footprint, save money on energy bills, and increase the value of your property. While there is no such thing as free solar panels, various government schemes and initiatives make it possible for homeowners to get them at a reduced cost or for free. At Ecowise Renewables, we specialize in solar panel design and installation and can help you find the best options available to suit your needs. Get in touch with our team today to discuss how we can help you with solar panels in Essex.