The Warm Homes Plan does include solar panels — but for most owner-occupiers, it won't mean free panels. Whether you get a grant, a loan, or simply benefit from 0% VAT and export payments depends entirely on your income, your EPC rating, and which part of the plan has actually launched. Here's the honest picture.
What is the Warm Homes Plan, and does it cover solar?
The Warm Homes Plan is the government's overarching programme to upgrade the energy efficiency of up to 5 million UK homes by 2030. It sits across several separate schemes — and that's where the confusion starts. Not all of them are open yet, and not all of them cover solar panels.
Within the plan, solar panels are an eligible measure. But eligibility for free solar sits behind strict income and property tests. The plan's own guidance makes clear it is targeted primarily at lower-income households in poorly rated homes. If that isn't you, there are still meaningful financial benefits — just not a free installation.
Think of the Warm Homes Plan as three separate doors. You need to knock on them in the right order.
Door 1: ECO4 — closing 31 December 2026, act now if you qualify
ECO4 (the Energy Company Obligation scheme) is the existing free upgrade scheme funded through energy suppliers. It closes on 31 December 2026 with no direct successor supplier obligation after that date. If you qualify, this is the most urgent door to knock on.
To qualify for ECO4 you generally need:
- A home with an EPC rating of D, E, F or G; and
- A qualifying means-tested benefit (such as Universal Credit, Pension Credit, or Child Benefit with income limits) — or a referral via your local authority's LA Flex route.
There's a catch specific to solar: ECO4 primarily funds solar PV in homes that rely on electric heating rather than gas. If your home has a gas boiler, ECO4 is unlikely to fund solar panels for you — insulation and heating upgrades are the more typical measures.
If you do tick the boxes, apply through your energy supplier (British Gas, E.ON, Octopus, OVO and others all participate) as soon as possible. The closer you leave it to December, the higher the risk that installer capacity fills up or individual supplier quotas are met before your installation is complete.
You can read a full breakdown of what's real and what's not in our guide to free solar panels from the government in 2026.
Door 2: The Warm Homes Local Grant — the main successor for lower-income homeowners
Once ECO4 closes, the Warm Homes Local Grant (WHLG) becomes the primary route to a funded solar installation for eligible households. It's delivered through local councils in England and is funded until March 2028, so unlike ECO4 there's a longer runway — but coverage and waiting times vary sharply by area.
To qualify for the WHLG you generally need to meet all three of these tests:
- Location: Your home must be in England (Scotland and Wales have separate schemes).
- Property: Your home must have an EPC rating of D, E, F or G. Homes rated C or above are excluded — the scheme targets the least efficient properties.
- Income: Your household income must usually be £36,000 a year or less — though you may still qualify above that threshold if you live in a qualifying postcode (IMD Income Deciles 1–2) or if someone in your household receives certain benefits.
The WHLG can provide up to £15,000 toward energy efficiency measures (including solar panels) and a separate £15,000 toward low-carbon heating — up to £30,000 in total. Solar is listed as an eligible measure on gov.uk, but whether you actually receive solar panels depends on a survey of your home. It is not a universal solar grant: the surveyor decides which measures make sense for your property.
Apply through your local council, or use the postcode checker on gov.uk to find your local delivery route. Given that delivery is entirely local, timelines vary — some councils are moving quickly, others are still ramping up.
Is ECO4 finished? What exactly replaces it?
ECO4 closes on 31 December 2026. After that date, there will be no direct successor supplier obligation — the government confirmed in January 2026 that there will be no ECO5. The Warm Homes Local Grant is the primary replacement for low-income households, but it works differently: funding comes from central government rather than energy suppliers, and delivery goes through local councils rather than through energy companies directly. That means the process is different, timelines may be longer, and availability varies by local authority area.
The honest message is this: if you currently qualify for ECO4, applying now while it is still running is almost certainly the faster, more reliable route. Don't wait for the Local Grant if ECO4 is available to you.
Door 3: The Consumer Loan Scheme — coming, but not yet open
The third part of the Warm Homes Plan is a government-backed low or zero-interest consumer loan scheme for solar panels, batteries and heat pumps, backed by up to £2 billion of funding. Crucially, this one has no income test — it is designed for all homeowners, including those who don't qualify for the grants above.
The catch: the loan scheme is not yet open for applications. It is expected to launch in phases from 2027, and full eligibility details have not yet been published. The government has said it will confirm details during 2026, but as of now there is no application route.
If you're an average homeowner hoping to use this scheme, you'll need to wait — and plan accordingly. In the meantime, two things are available to you right now.
What every homeowner can claim right now: 0% VAT and the Smart Export Guarantee
Even if you don't qualify for any grant, there are two financial benefits that apply to almost every homeowner who installs solar panels — and they're worth knowing about.
0% VAT — a saving of hundreds of pounds, but there's a deadline
Solar panel installations currently qualify for 0% VAT — saving you what would otherwise be a 20% tax on the full cost of panels, labour and installation. On a typical domestic system, that's a meaningful reduction in your upfront cost, and it applies automatically; you don't need to apply for anything. However, the 0% rate is confirmed only until 31 March 2027. If you're planning to install solar in the next year or so, this is a genuine reason not to leave it too late.
The Smart Export Guarantee (SEG) — getting paid for what you don't use
Once your panels are installed by an MCS-certified installer and registered on the MCS database, you're entitled to join the Smart Export Guarantee. This is the government-backed scheme, administered by Ofgem, that requires licensed electricity suppliers to pay you for every unit of solar electricity you export back to the grid.
SEG rates are set by suppliers, not government, so they vary. Fixed rates from major suppliers currently sit in the 5–15p per kWh range, with some variable tariffs potentially exceeding this at peak times. Picking the right tariff matters — our guide to the best Smart Export Guarantee rates in 2026 walks through the current options in detail.
To register for SEG, your system must be installed by an MCS-certified installer. This is also a consumer protection measure — an MCS certificate is your guarantee that the work meets the required standard. You can verify any installer at mcscertified.com before signing anything.
The honest summary: which door applies to you?
Here's the plain-English version of what's on offer in 2026–27:
- You receive qualifying benefits and your EPC is D–G: Check ECO4 eligibility immediately via your energy supplier — the scheme closes 31 December 2026.
- Your household income is £36,000 or less, EPC is D–G, and you're in England: Apply for the Warm Homes Local Grant through your local council. Solar may be included, subject to a home survey.
- You earn more than £36,000 or your EPC is C or above: You won't qualify for the grants above. The consumer loan scheme is coming but isn't open yet. In the meantime, 0% VAT reduces your upfront cost and the Smart Export Guarantee pays you for unused electricity.
- Nobody qualifies for free panels as a right — even under the grant schemes, solar is only included where a survey finds it appropriate for your property.
If you want to understand what a system might cost and when it would pay back for a home like yours, our guide to solar panel payback time in 2026 gives a realistic picture.
A note on Scotland, Wales and Northern Ireland
The Warm Homes Local Grant is an England-only scheme. Scotland has its own Home Energy Scotland grant and loan scheme. Wales has the Nest scheme. Northern Ireland has separate energy efficiency programmes. If you're outside England, contact your devolved government's energy advice service for the schemes that apply to you.
Getting quotes: what to do while you're waiting for clarity
Whether you're applying for a grant or paying privately, you'll need quotes from MCS-certified installers either way. Grant administrators and local councils will require them; if you're self-funding, they're how you find the best price and avoid being overcharged. Getting multiple quotes from vetted local installers costs nothing and gives you a baseline — so you know whether any grant-referred quote is fair value or not.
If you'd like to see what installers are quoting for homes like yours in your area, get free, no-obligation quotes through FairSolar. We connect you with MCS-certified local installers — there's no cost to you and no obligation to proceed.
Frequently asked questions
What is the Warm Homes Plan for solar panels?
The Warm Homes Plan is the UK government's umbrella programme to upgrade up to 5 million homes by 2030. Solar panels are an eligible measure within it, but free installations are targeted at lower-income households with poorly rated homes (EPC D–G). Most owner-occupiers won't receive free panels but can benefit from 0% VAT and the Smart Export Guarantee.
Do I qualify for the Warm Homes Plan for solar panels?
For a fully funded solar installation, you'd typically need a household income of £36,000 a year or less, an EPC rating of D, E, F or G, and you must be in England (Scotland and Wales have separate schemes). Even then, solar is only included where a home survey finds it suitable — it's not automatic. Use the gov.uk postcode checker to find your local grant route.
Is ECO4 finished, and what replaces it for solar?
ECO4 closes on 31 December 2026 with no direct successor supplier obligation after that date. The Warm Homes Local Grant is the main replacement for lower-income households, delivered through local councils in England until March 2028. It works differently from ECO4 — the process is council-led, timelines vary by area, and waiting times may be longer.
When does the government solar loan scheme start?
The government-backed consumer loan scheme — which will offer low or zero-interest loans to all homeowners regardless of income — is not yet open for applications. It is expected to launch in phases from 2027. Full eligibility details have not been published yet, so there is no application route available as of mid-2026.
What solar benefits are available to me if I don't qualify for a grant?
Two things apply regardless of income. First, solar installations currently qualify for 0% VAT — saving you what would otherwise be 20% on the full cost — until 31 March 2027. Second, once your system is installed by an MCS-certified installer, you're entitled to join the Smart Export Guarantee and get paid for surplus electricity you send back to the grid, with many suppliers currently offering 5–15p per kWh.