As of October 2022, electricity tariff rates have increased to an all-time high of 34p/kWh, and rates are due to rise again in April 2023, forcing many UK homeowners to consider investing in solar panels.
However, the upfront cost of solar panels is considerable. According to information from the Energy Saving Trust, a household solar panel installation typically costs £6,500. Homeowners are now worried about how to pay for such technologies.
The UK Government offers a variety of grants for solar panels to help households profit from their solar panels and even finance their systems.
But which of the grants for solar panels in the UK do you qualify for?
To help you understand what help is available, according to research, the available grants for solar panels in the UK and their qualification criteria.
What are Grants for Solar Panels?
Grants for solar panels are a type of financial incentive that can help offset the cost of installing solar panels. In most cases, grants for solar panels in the UK are provided by government agencies, while in other cases, they may be offered by utility companies or other organizations.
This is intended to make solar power more accessible and encourage people to switch to renewable energy sources.
Typically, grants for solar panels are awarded based on the solar installation size, with larger installations receiving more funding.
Grants may also be awarded based on the specific purpose of the installation, such as providing power for low-income housing development.
What is the Requirement for Grant for Solar Panels in the UK?
The first prerequisite is renting the property where they will install the solar panels.
You cannot qualify for these grants for solar panels if you are renting your house or apartment. However, this choice is still open if you own an apartment and rent it out to tenants.
Grants for solar panels are only available if your home is in a good area for solar energy and if you still need to have solar panels placed on your property.
If you satisfy these requirements, all that is left to do is complete and submit the application form.
How to Find the Best Solar Panel Grant
The grants for solar panels that are most likely to be awarded to you are those you can apply for.
You must decide how much money is available, how much cash will be given to each applicant, and what kinds of firms will be eligible before deciding if a grant is appropriate for your company.
The easiest method to determine which of the grants for solar panels are appropriate for you is to carefully review all of the available details on the grant website before deciding whether or not to apply.
Overview of the Best Grants for Solar Panels in the UK
Below is an overview of the best grants for solar panels in the UK in 2023.
- The Renewable Heat Incentive (RHI)
- The Smart Export Grantee (SEG)
- The Energy Company Obligation (ECO)
- The Renewable Heat Premium Payment (RHPP)
- The Renewable Transport Fuel Obligation (RTFO)
- The Carbon Trust Standard
- The Clean Growth Fund
- The Feed-in Tariff (FiT)
- La Flex Scheme
- The Green Home Grants
List of the Best Grants for Solar Panels
Here are the ten best grants for solar panels in the UK in 2023.
#1. The Renewable Heat Incentive (RHI)
An incentive called the Renewable Heat Incentive (RHI) is available to UK residents and companies. It tries to promote the adoption of renewable heating options, such as solar energy.
You must fulfill several requirements, such as occupying an eligible property as your primary residence and installing and utilizing approved equipment that is eligible for this grant.
Using alternative energy sources, such as solar panels on roofs or biomass boilers, instead of fossil fuels is also encouraged.
#2. The Smart Export Guarantee (SEG)
The excess electricity generated by solar panels and other renewable energy systems owned by homeowners and tenants is paid for under this guarantee.
The SEG program ensures businesses can access funding when they most need it.
The program aims to persuade more individuals to invest in renewable energy sources, increasing the amount of emissions-free electricity generated and consumed in the UK.
#3. The Energy Company Obligation (ECO)
A government program called (ECO) aids in financing the installation of renewable energy sources in residences and commercial buildings.
Regardless of wealth or poverty, everyone can access renewable energy thanks to the ECO.
Apply for an ECO grant to help with installation costs if you’re interested in installing solar panels. Any private residences or companies that want to put solar panels on their property or roof are welcome.
#4. The Renewable Heat Premium Payment (RHPP)
This payment will support homeowners and landlords who want to install sustainable heating systems, such as solar thermal panels.
This grant is intended to motivate individuals to switch to renewable energy sources and lower their carbon emissions, both of which are beneficial to the environment.
It is accessible to UK homeowners and companies that have installed qualified renewable heating equipment under the program.
#5. The Renewable Transport Fuel Obligation (RTFO)
This government award for solar panels intends to support the UK’s development of renewable energies.
You can apply for a grant through this program if you want to employ renewable energy for your home or business.
The initiative provides matching grants of up to £50,000. It is one of the best grants for solar panels.
#6. The Carbon Trust Standard
The Carbon Trust Standard quantifies the carbon footprint of your roof. One of the UK’s trustworthy grants for solar panels is this one.
The standard will assist you in deciding whether or not it is a suitable location for installing solar panels and whether your roof can withstand the weight of those panels
#7. The Clean Growth Fund
Grants for solar energy and other renewable energy projects are available through the Clean Growth Fund, a government-sponsored initiative.
By paying for installing solar panels, the fund encourages people to transition to renewable energy sources and lowers the quantity of carbon dioxide (CO2) released into the atmosphere.
Applications for the Clean Growth Fund are welcome from companies of all sizes, local governments, social enterprises, and nonprofit organizations.
#8. The Feed-in Tariff (FiT)
A government subsidy scheme called the Feed-in Tariff (FiT) rewards the installation of solar panels by paying you for generating your electricity.
It comes with a 20-year guarantee and rewards you for each unit of electricity you generate. It’s a terrific method to raise your income while lowering your carbon footprint.
The FiT covers all renewable energy sources, such as wind turbines, hydroelectricity, biomass, and geothermal energy.
#9. La Flex Scheme
A simple expansion of the Energy Company Obligation (ECO) program is the LA Flex program.
It intends to promote using solar panels and other renewable energy technology in residential buildings. The program also offers a refund for installing solar panels on residential premises.
Following this plan, homeowners can get financial assistance from public and private sources to install renewable energy systems on their houses.
10. The Green Home Grants
A government-funded Green Homes Grant initiative encourages homeowners to construct or install renewable energy systems.
Systems that produce heat and power are eligible for the subsidy, including biomass boilers, solar panels, and wind turbines.
Air source heat pumps, solar panels, heat pumps, biomass boilers, and wind turbines can all be installed thanks to the grant.
What Obstacles Must You Overcome to Achieve Solar Power Grants?
One of the biggest obstacles to getting solar power grants is that they’re frequently quite competitive.
This suggests that if you want to be considered for a grant, you must be ready to submit an application and demonstrate your need for solar energy.
The availability of funds, which are often constrained in scope, is another problem. For instance, while other grants might cover the entire cost of your installation, others might cover a tiny fraction of it. It is better to go elsewhere if you’re looking for something in-between these two choices.
Another area for improvement is that receiving solar power grants has to be guaranteed. You might apply for one, but you might only learn the results of your application for a few months or even years.
Depending on how many stories your property is, you will likely need to erect scaffolding around your house to provide a platform for the workers to install your solar panels safely. The cost for scaffolding is usually included in your quote, but check this with your installer. Rails will be attached to your roof, and the solar panels will be attached to these rails at the optimum angle to collect energy from the sun.
While the initial cost may seem expensive, the rising price of electricity supplied by the grid has seen solar panels become a popular and worthwhile investment. Producing your electricity will save you hundreds on your energy bills, and potentially even around £1,000 or more annually if you change your energy use habits to take advantage of your solar power. With the average cost of a 3.5kW system being about £5,500, as stated above, solar panels can potentially pay for themselves within six or seven years.
The typical household will pay between £6,000 and £8,000 for a 4kW system. Various incentives are available to assist homeowners in reaping the benefits of their investment sooner. They can either help you cover a portion of the upfront costs of solar panels or help you make money from the electricity you generate, depending on which of the grants for solar panels you qualify for.
You may make up to 11p per kWh produced by your solar panel and transmitted back to the electrical grid in the UK thanks to the Smart Export Tariff. Your income is based on the SEG-licensed electricity supplier you use.
We have listed the ten best grants for solar panels in the UK in 2023.
The cost of solar panels is at an all-time low, and with grants like ECO and the LA Flex scheme, you can soon begin enjoying the benefits of pure solar energy. When you use the SEG system to transmit extra power to the National Grid, you can reduce energy costs and make money from it.
Consider whether you qualify for assistance and do more studies on the benefits of solar energy. You might believe it’s impossible to switch to solar energy, but with several financial options, setting up solar panels could be simpler than you think.