Funded solar panel FAQs for 2026

Yes. "Funded" means the cost is reduced, spread or offset rather than given away free. The live UK routes are 0% VAT until 31 March 2027, the Smart Export Guarantee, zero-deposit finance and PPAs, the £7,500 Boiler Upgrade Scheme for heat pumps, business capital allowances, and occasional council group-buying schemes.

For most households, no. ECO4 — the scheme behind most genuinely free domestic solar — closed to new measures on 31 March 2026. Some local and supplier schemes persist for specific groups, and the Warm Homes Plan may restore means-tested help in time, but treat any "free panels" advert with caution.

Free solar means a third party pays for the panels, usually through a grant tied to low income or benefits. Funded solar means the cost is covered by finance, tax relief, export income or a discount such as 0% VAT — so you still hold value in the system and gain from the savings, but it is not a giveaway.

Domestic solar PV and battery storage are zero-rated for VAT until 31 March 2027 in Great Britain. On a £7,000 home install that is around £1,400 saved versus the standard 20% rate, applied automatically by the installer with no application.

A lender or a solar PPA provider covers the upfront cost. With a loan you repay monthly and own the system; with a PPA the provider owns the panels and you buy the solar power at an agreed rate. The goal is for the cost to sit at or below your energy saving. Always check the total repayable, APR and contract length before signing.

The SEG requires larger licensed electricity suppliers to pay you for surplus solar electricity you export to the grid. Rates vary by supplier, so it pays to compare. You generally need an MCS-certified system and a smart or export meter to qualify.

No. The BUS is a £7,500 grant towards a heat pump in England and Wales — it funds heat, not solar PV. But heat pumps raise your electricity use, which makes self-generated solar more valuable, so the two are often installed together.

Businesses generally cannot use the 0% VAT relief but can claim capital allowances — the Annual Investment Allowance and 50% First-Year Allowance — to deduct the cost against taxable profits. Combined with asset finance or a commercial PPA, a system can be cash-flow positive from year one. The relief depends on your tax position, so take advice from your accountant.

The Warm Homes Plan is the Government's evolving successor to ECO4. As of 2026 its detailed rules and budget are still being confirmed, and it is expected to be means-tested. It may restore some grant-funded routes for qualifying homes, but we will not promise what is not yet live.

No. This site leads on the funded and finance routes that are live in 2026 for homes and businesses across the UK. Our companion site freesolarpanelsengland.co.uk focuses specifically on the no-upfront-cost and means-tested angle in England. They cover related but different ground.

No. The eligibility check and any introduction to an accredited installer are free and carry no obligation. We are paid by installers only when an enquiry leads to work, never by you.

Be wary of any "free solar panels" offer, pressure to sign today, "government-backed free" claims and missing MCS certification. Always get the full terms in writing, never pay a fee to "access funding", and compare at least one other quote. Our avoiding-scams guide sets out the full checklist.