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How Government Solar Panel Grants Are Revolutionising The Energy Sector

In recent years, the energy sector has undergone significant transformation, driven by the need for sustainable and renewable energy sources. Solar energy is a leading contender in this transition. It has seen a surge in adoption due to various government incentives.

Government solar panel grants, in particular, have played a pivotal role in promoting solar energy usage across the UK, including London and the South East. These grants aim to make solar energy accessible and affordable for both residential and commercial properties.

In this blog, we will explore the nature of these grants, their impact on the energy sector, and practical tips for acquiring them. Would you like to speak to our solar energy experts directly? They can help you get insights into the various solar panel grants in place while also supplying and installing the right solar panels for your property. Call 020 8087 0216 or email enquiries@tarvenlimited.co.uk to avail of our comprehensive services.

“Want to leverage solar panel grants for cost-effective solar panel installation? Trust Tarven Solar Energy to help you through the process with expert guidance and quality services.”

Government Solar Panel Grants

Government solar panel grants are financial incentives provided by the UK government to encourage the adoption of solar energy. These grants aim to reduce the upfront costs associated with installing solar panels, making it a cost-effective solution for many.

By offering these grants, the government seeks to promote the use of clean energy, reduce carbon emissions, and support the country’s goal of achieving net-zero emissions. This initiative also makes solar energy a viable option for a broader audience, driving higher adoption rates.

Understanding Their Significance In Revolutionising The Energy Sector

Government solar panel grants are revolutionising the energy sector by making renewable energy more accessible. By providing financial support, these grants facilitate the widespread adoption of solar technology, leading to several significant benefits:

  • Increased adoption of solar energy: Grants reduce the initial cost, encouraging more people to install solar panels.
  • Reduction in carbon emissions: More solar energy usage leads to lower carbon emissions. This contributes to environmental conservation.
  • Energy independence: Increased solar energy production reduces reliance on imported fossil fuels, which enhances energy security.
  • Economic growth: The solar industry creates jobs and stimulates economic growth, especially in the renewable energy sector.

The 4 Best Government Solar Panel Grants In The UK

  1. Smart Export Guarantee (SEG)

    The Smart Export Guarantee (SEG) is a government-backed initiative that came into effect on 1 January 2020. It mandates that large electricity suppliers must offer a tariff to small-scale, low-carbon generators for the electricity they export to the national grid. This includes homeowners and businesses generating solar power.

    Under the SEG, providers set their rates and terms, leading to competitive tariffs. This ensures that solar panel owners receive a fair price for the excess electricity they produce.

    The SEG replaces the previous Feed-in Tariff (FiT) scheme, offering a more market-driven approach to support solar energy generation.

  2. VAT-Free Period For Solar Panels

    The UK government introduced a VAT-free period for solar panels in April 2022, making solar energy more affordable for both homeowners and businesses. This initiative removes the 5% Value Added Tax (VAT) previously applied to the installation of solar panels, as well as other energy-saving materials like heat pumps and insulation.

    For businesses, solar panels have a 20% VAT rate, but this can be reclaimed through input tax claims if the panels are used for taxable business activities.

  3. Energy Company Obligation (ECO) Scheme

    The Energy Company Obligation (ECO) scheme is designed to reduce energy consumption and support low-income households. Under the ECO scheme, major energy suppliers fund the installation of energy-efficient measures, including solar panels, in eligible homes.

    The scheme focuses on reducing heating costs and improving energy efficiency for vulnerable households. The latest phase, ECO4, started in 2022 and will run until 2026, targeting deeper energy efficiency improvements and more substantial carbon savings.

    This scheme helps to make solar energy accessible to a broader demographic, particularly those in fuel poverty.

  4. Local Authority Delivery Scheme

    The Local Authority Delivery Scheme is part of the broader Green Homes Grant program, providing funding directly to local authorities to improve the energy efficiency of low-income households.

    This scheme supports the installation of various energy-saving measures, including solar panels. Local authorities receive grants to implement these improvements, focusing on reducing energy bills and carbon emissions.

    As per updates made on the UK government website in 2022, £500 million in funding was allocated to local authorities through the Local Authority Delivery (LAD) scheme with the aim of improving the energy efficiency of low-income households.

4 Tips To Acquire The Government Solar Panel Grants

  1. Research Eligibility

    Understand the specific criteria for each grant. Some are targeted at residential properties, while others may be for commercial use.

    In addition to that, there may be other requirements (e.g. your household’s income status, location, etc.) that you will have to fulfil to be able to get the grant. It is advisable to check the UK government website to understand the criteria before proceeding to apply for a grant.

  2. Prepare Documentation

    Gather necessary documents such as proof of property ownership, energy bills, and technical specifications of the solar panel system.

  3. Consult Professionals

    Engage with certified solar panel installers who are familiar with the grant application process. They can provide guidance and ensure compliance with requirements. We are just a call away from you – feel free to reach out, and one of us will get you started with the process.

  4. Apply Early

    Funding for these grants can be limited. Submit your application early to increase your chances of securing financial support.


Government solar panel grants are crucial in making solar energy a practical and affordable option for many. They play a significant role in revolutionising the energy sector by driving the adoption of renewable energy sources.

These grants not only reduce the financial burden of installing solar panels but also contribute to environmental conservation and energy independence.

Trust Tarven Solar Energy to help you with expert guidance throughout the process and install quality solar panels with additional storage options for added efficiency. Contact us today to discuss your requirements.