Government Grants for Solar Panels & Boilers

The UK government offers several schemes to help households reduce energy costs through solar panels, boiler upgrades, and energy efficiency improvements. Here’s a complete guide to what’s available and how to qualify.

ECO4 Scheme (2022-2026)

The Energy Company Obligation 4 (ECO4) is the primary government scheme for energy efficiency improvements. It runs until 31 March 2026 and obliges large energy suppliers to fund improvements in qualifying households.

What ECO4 Covers

• Boiler replacement — Free or subsidised A-rated boiler
• Solar panels (PV) — In some cases, funded as part of a package
• Heat pumps — Air source and ground source heat pumps
• Insulation — Loft, cavity wall, and solid wall insulation
• Heating controls — Smart thermostats, TRVs
• First-time central heating — For homes without central heating

ECO4 Eligibility Criteria

You may qualify for ECO4 if you meet any of the following:

1. Receipt of qualifying benefits:

• Universal Credit
• Income Support
• Income-Based Jobseeker’s Allowance
• Income-Related Employment and Support Allowance
• Pension Credit (Guarantee Credit or Savings Credit)
• Child Tax Credit (income below threshold)
• Working Tax Credit
• Housing Benefit
• Child Benefit (income threshold applies)

2. Low income (ECO4 Flexible Eligibility / LA Flex):

• Household income below £31,000/year
• Home has a low EPC rating (D, E, F, or G)
• Vulnerable to cold (elderly, disabled, young children)

3. Referral from a local authority:

• Local authorities can refer households they identify as needing support

How Much Is an ECO4 Grant Worth?

Smart Export Guarantee (SEG)

The Smart Export Guarantee (SEG) requires energy suppliers with more than 150,000 customers to pay households for excess solar electricity exported to the grid.

SEG Key Points

• Minimum rate: 1p per kWh (most suppliers pay more)
• Best rates: Up to 15p per kWh with certain suppliers
• Typical annual income: £80-£200 for a 4kW system
• Requirements: MCS-certified installation and smart meter

SEG Rates by Supplier (2024-2025)

Boiler Upgrade Scheme (BUS)

The Boiler Upgrade Scheme (BUS) provides grants of £7,500 towards the cost of replacing an old boiler with a heat pump or biomass boiler.

BUS Details

• Grant amount: £7,500 (increased from £5,000 in October 2023)
• What it covers: Air source heat pump, ground source heat pump, biomass boiler
• Eligibility: Most homeowners in England and Wales with a property EPC
• How to apply: Through an MCS-certified installer who applies on your behalf
• Deadline: Scheme runs until 2028

Solar Together (Group Buying)

Solar Together is a group-buying scheme run by local councils that uses collective purchasing power to negotiate discounted solar panel prices.

• Discount: Typically 20-30% below market prices
• How it works: Register interest → auction → accept offer → installation
• Availability: Check if your local council participates

Local Authority Grants

Many local councils offer their own energy efficiency grants, often in partnership with ECO4. These can include:

• Free or subsidised boiler replacements
• Solar panel installation for social housing
• Emergency heating grants
• Winter fuel support

Contact your local council to find out what’s available in your area.

How to Apply for Grants

The application process varies by scheme, but the general steps are:

1. Check your eligibility — Use our free assessment tool
2. Gather documents — Benefit letters, energy bills, proof of income
3. Speak to an advisor — We’ll guide you to the right scheme
4. Free home survey — An assessor visits to check your property
5. Approval & installation — If approved, work is completed quickly

Want to find out which grants you qualify for? Use the form above or check your eligibility now →