Solar Panel Grants & Funding Hampshire 2026

Overview of Available Solar Grants and Incentives

The UK government does not currently offer a direct grant for solar panel installation for most homeowners. The former Green Homes Grant scheme ended in 2021, and there is no like-for-like replacement. However, several other financial incentives exist that collectively make solar panels significantly more affordable than the headline price suggests.

The most impactful incentive is the 0% VAT rate on domestic solar and battery installations, which effectively saves you 20% on the total cost. Beyond this, the Smart Export Guarantee provides ongoing income for surplus electricity, and the ECO4 scheme offers fully funded installations for eligible low-income households.

Hampshire residents also have access to Solar Together Hampshire, a council-backed group-buying scheme that negotiates bulk discounts with vetted installers. Combined, these incentives can reduce the effective cost of a solar installation by 25-40% over the system lifetime.

• 0% VAT on domestic solar and battery installations
• Smart Export Guarantee (SEG) for export payments
• Solar Together Hampshire group-buying scheme
• ECO4 scheme for low-income households
• OZEV grant for EV charger installations (renters/landlords)

Solar Together Hampshire

Solar Together Hampshire is a group-buying scheme supported by Hampshire County Council and several district councils across the region. The scheme works by combining the purchasing power of hundreds of Hampshire households to negotiate discounted rates with pre-vetted solar installers.

The process is straightforward. You register your interest through your local council website during an open registration window. An auction is then held where approved installers compete to offer the lowest price for the combined volume of registrations. You receive a personal recommendation based on your property, with no obligation to proceed.

Historically, Solar Together schemes across the UK have delivered savings of 20-30% compared to individual quotes from the same installers. The scheme also provides additional peace of mind because all participating installers are vetted by the iChoosr organisation, which manages the auction process, and installations are covered by a dedicated complaints resolution service.

• Register interest through your local council website
• No obligation to proceed after receiving your offer
• Pre-vetted installers compete in a reverse auction
• Typical savings of 20-30% vs individual quotes
• Dedicated aftercare and complaints resolution

ECO4 Scheme for Solar Panels

The Energy Company Obligation (ECO4) scheme is a government programme that requires large energy suppliers to fund energy efficiency improvements for low-income and fuel-poor households. Solar panels are an eligible measure under ECO4, meaning qualifying households can receive a fully funded solar installation at no upfront cost.

Eligibility is based on a combination of household income, benefits received, and property energy efficiency rating. Households in receipt of certain means-tested benefits, including Universal Credit, Pension Credit, and Child Tax Credit, may qualify. Properties with an EPC rating of D, E, F, or G are prioritised, as the scheme aims to bring these homes up to at least a Band C rating.

The ECO4 scheme runs until March 2026, with a potential successor scheme expected. If you believe you may qualify, it is worth applying as soon as possible to avoid missing the current window. Your energy supplier or a registered ECO4 installer can assess your eligibility.

• Fully funded solar panels for qualifying households
• Eligibility based on means-tested benefits
• Properties rated D-G on EPC are prioritised
• Scheme runs until March 2026

Smart Export Guarantee (SEG)

The Smart Export Guarantee is a UK government scheme that requires licensed electricity suppliers with more than 150,000 customers to offer a tariff for exported solar electricity. Any household with an MCS-certified solar installation up to 5MW can apply for SEG payments.

SEG rates vary by supplier and tariff type. Fixed-rate tariffs typically pay 4-6p per kWh, while variable and agile tariffs can pay significantly more during peak demand periods. Octopus Energy consistently offers some of the most competitive rates, with their Agile export tariff sometimes paying 15-30p per kWh during peak periods.

For a typical 4kW solar system exporting 50% of its generation, SEG payments can amount to £100-300 per year on a fixed rate. With a smart battery and agile tariff, you can strategically export during high-price windows and potentially earn even more. SEG registration is free and handled by your chosen energy supplier, though your system must be MCS-certified to qualify.

• Available to all MCS-certified installations up to 5MW
• Fixed rates typically 4-6p per kWh exported
• Variable and agile rates can exceed 15-30p per kWh
• Registration is free through your energy supplier
• Smart meter required for accurate export measurement

0% VAT on Solar Panels Explained

Since April 2022, the UK government has applied a 0% VAT rate to the supply and installation of energy-saving materials in residential properties, including solar panels, battery storage systems, and heat pumps. This represents a significant saving of 20% compared to the standard VAT rate that previously applied.

The 0% VAT applies to both the materials and the labour costs of installation. It covers solar panels, inverters, battery storage (when installed at the same time as solar or as a standalone retrofit), mounting hardware, and all associated electrical work. The relief is available for all residential properties regardless of the homeowner's income.

For a typical 4kW solar system with battery storage costing £10,000, the 0% VAT rate saves you £2,000 compared to what you would have paid at the standard 20% rate. This single incentive has made solar significantly more accessible and has been a major driver of the increase in residential solar installations across Hampshire and the wider UK.