In the face of rising energy bills and increasing environmental concerns, the UK government has made a concerted effort to shift the nation’s reliance on traditional power sources to more sustainable alternatives. Among the various initiatives undertaken, solar panel grants stand out as a significant incentive for homeowners.
Solar panels offer numerous benefits, including:
- Savings of up to £1,190 on your annual energy bills
- Reducing your household carbon footprint by up to 1.2 tonnes per year
- Gaining independence from rising electricity prices
By supporting the installation of photovoltaic systems, these grants not only help to reduce the carbon footprint of individual households but also offer the potential for significant savings in energy costs. But with an installation for a typical three-bedroom property being around £5,500, the upfront cost of solar panels can be daunting.
The ECO4 scheme allows eligible households the possibility of saving 100% on the initial cost. Our experts assess this and other financial incentives designed to help homeowners afford solar power, including who’s eligible and how much they can save.
What residential solar grants are available?
Several solar panel grants and incentives are available in the UK, with differing eligibility criteria and application processes.
Energy Company Obligation (ECO4) scheme (including LA Flex)
The UK government scheme Energy Company Obligation (ECO) managed by Ofgem focuses on improving the country’s least energy-efficient homes – and is primarily aimed at low-income and vulnerable households. Through the scheme, larger energy suppliers must provide energy efficiency measures for UK homes.
The ECO has gone through a series of phases in regard to eligibility criteria and the focus of the scheme, including the expired ECO3. You could be eligible for the ECO4 funding if you receive any of the following benefits:
- Income-based Jobseekers Allowance (JSA)
- Income-related Employment & Support Allowance (ESA)
- Income Support (IS)
- Universal Credit (UC)
- Housing Benefit
- Working Tax Credit (WTC)
- Child Tax Credits (CTC)
- Pension Credit Guarantee
- Pension Credit Savings Credit
The Child Benefit income threshold to qualify for ECO4 varies depending on how many children you have and whether you’re a single or two-parent household.
Single-parent households:
- One child – £19,900
- Two children – £24,800
- Three children – £29,600
- Four or more children – £34,500
Two-parent households:
- One child – £27,500
- Two children – £32,300
- Three children – £37,200
- Four or more children – £42,000
Those with additional Department for Work and Pensions (DWP) benefits –regardless of whether you receive Universal Credit – may also be eligible for ECO4.
The ECO4 grant’s focus is primarily on homes occupied by their owners. However, the scheme can also be extended to support energy-inefficient social housing and privately rented properties (so long as the property owner allows).
Properties with an energy performance certificate, or EPC, rating of D or above are not eligible for the ECO4, and for homes of F and lower, the improvements should raise them to an EPC rating of at least D.
LA Flex (Local Authority Flexible Eligibility), an extension of the ECO4 scheme, allows local authorities to identify households that may not have met the criteria or been eligible under the national criteria. Through LA Flex local authorities can decide eligibility for energy efficiency improvements – this is usually based on the following:
- The household is defined as low-income and is at risk of fuel poverty.
- The property is hard to heat, often due to poor insulation or lack of a central heating system.
- The residents are vulnerable in some way, such as being elderly, disabled, or having young children.
It should be noted that for private tenants to be eligible for LA Flex, they would need their landlord’s permission.
Those who are eligible under ECO4 or LA Flex could be entitled to up to 100% off their solar panels.
