1. Zero-deposit finance and solar PPAs — the real "funded" route
When people search "funded solar panels", this is usually what they actually want: a way to get solar without paying upfront. Two structures deliver it. A solar loan or asset finance package spreads the capital cost over a fixed term — often 5 to 15 years — so you own the system and repay monthly. A Power Purchase Agreement (PPA) goes further: a provider installs and owns the panels at no cost to you, and you simply buy the solar electricity they generate at an agreed rate, usually below your grid price.
The appeal is obvious — little or no money down. The discipline is in the detail. On finance, check the total amount repayable, the APR, and whether the monthly repayment really sits below your energy saving. On a PPA, check the unit rate, any annual escalator, the contract length (often 20–25 years), and what happens if you sell the property. A good PPA is genuinely funded solar; a poor one locks you into above-market rates. We help you compare like-for-like before you sign anything.
2. 0% VAT on domestic solar and battery storage
Since 2022, the installation of domestic solar PV — and, since February 2024, standalone and retrofit battery storage — has been zero-rated for VAT in Great Britain. That relief runs until 31 March 2027, after which it is currently set to revert to a reduced 5% rate.
You do not apply for this. A VAT-registered installer simply quotes you the zero-rated price. On a typical £7,000 home system the saving versus 20% VAT is around £1,400 — and proportionally more on larger systems or when you add a battery. It applies to the supply-and-install of the qualifying equipment for residential properties; pure supply-only purchases and most commercial installs do not qualify. If your quote shows 20% VAT on a domestic install before April 2027, query it.
3. The Smart Export Guarantee (SEG)
The SEG is not a grant and it does not reduce your install cost — but it does fund part of the system over its life, which is why it belongs here. Under the scheme, licensed electricity suppliers with 150,000+ customers must offer a tariff that pays you for each unit of solar electricity you export to the grid. Rates vary by supplier and are set by the market, so it pays to shop around: some export tariffs are far more generous than others, and pairing a battery with a time-of-use export tariff can increase what you earn.
To qualify you generally need an MCS-certified installation and a smart or export meter. The income is modest per unit but compounds over 20+ years and, importantly, it improves the payback maths that finance and PPA deals depend on.
4. The Boiler Upgrade Scheme (BUS) — heat, not solar
We include the BUS because it comes up constantly and is easy to misunderstand. It is a £7,500 grant in England and Wales towards an air-source or ground-source heat pump (or £5,000 toward biomass in eligible cases). It does not fund solar panels. But heat and power decarbonisation often go together: a heat pump raises your electricity use, which makes self-generated solar more valuable, and many households install both in the same project.
The grant is paid to and claimed by your MCS-certified installer, who deducts it from your quote — so you never handle the money. It cannot be stacked with ECO support on the same measure. If heat is part of your plan, factor the BUS in alongside your solar funding rather than treating them as rivals.
5. Business capital allowances (AIA and 50% FYA)
Commercial solar is funded differently from domestic. The main lever is tax. Under the Annual Investment Allowance (AIA), a business can deduct the full cost of qualifying plant and machinery — which includes solar PV — from its taxable profits in the year of purchase, up to the AIA limit. Larger spend can attract the 50% First-Year Allowance on special-rate assets. The effect is to cut the after-tax cost of an installation substantially.
Layer asset finance or a commercial PPA on top and a system can be cash-flow positive from year one. The allowances are not a grant and depend on your company's tax position, so take advice from your accountant — but for profitable businesses they are often the single biggest piece of the funding picture. To model the numbers, our partner tool — the commercial solar savings calculator — is a good starting point.
6. Solar Together and council group-buying
Group-buying schemes — Solar Together being the best-known — use collective bargaining to lower the per-household price. A local authority partners with an organiser, households register their interest, and a reverse auction among vetted installers produces a group rate, often below what you would get individually. There is no obligation to proceed after you receive your personalised offer.
The catch is timing: these schemes run periodically and by area, so one may not be open in your region right now. It is worth registering interest with your council and watching for the next round. When a scheme is live near you, it can be one of the simplest ways to cut the upfront cost without taking on finance.
Putting the routes together
Few people use just one route. A typical funded domestic project might combine 0% VAT, a SEG export tariff and a finance package; a business project might combine capital allowances with asset finance. The right mix depends entirely on your property, your tax position and your appetite for finance — which is exactly what our eligibility checker works out. For wider context on the public schemes, our companion guide to government grants for solar panels sets out how these fit the broader landscape.