ECO4 Solar Panels UK 2026 — Can You Get Free Solar Under the Scheme?
The ECO4 scheme is one of the most searched solar topics in the UK — because the idea of free solar panels is understandably appealing. The reality is more nuanced. Here is an honest guide to who actually qualifies, what you get if you do, and what your options are if you do not.
By Depth of Light — MCS certified solar installers, Milton Keynes
What is the ECO4 scheme?
ECO4 (Energy Company Obligation 4) is a government programme that obligates large energy suppliers to fund energy efficiency improvements in low-income and fuel-poor households. The scheme runs until March 2026 (with the successor scheme expected to follow). Energy companies — British Gas, EDF, E.ON, Octopus, and others — are legally required to fund a certain level of home improvement work each year.
ECO4 is primarily focused on reducing the energy costs of households in fuel poverty. Measures funded under the scheme include cavity wall insulation, loft insulation, solid wall insulation, heat pumps, and — in some circumstances — solar panels.
It is worth noting: ECO4 is not a government grants office you apply to. It operates through energy suppliers and approved installers, which is why the application process can feel opaque.
Is solar included in ECO4?
Solar PV (photovoltaic panels) is listed as an eligible measure under ECO4, but with important caveats. Solar is typically funded as a secondary measure — meaning it accompanies a primary measure like insulation or a first-time central heating system, rather than being funded on its own.
In practice, a household that qualifies for ECO4 might receive loft insulation as the primary measure, with solar panels added as a secondary measure to further improve the property's energy efficiency rating and push the EPC up. A property going from EPC F to EPC C on ECO4 funding might receive insulation, boiler upgrade, and solar panels all as part of the same package.
Getting solar panels as a standalone ECO4 measure — without any primary measure being funded alongside it — is possible in principle but rare in practice. Most installers and energy suppliers will not approve a solar-only ECO4 job because the scheme's scoring system prioritises whole-home improvements.
Who qualifies for ECO4?
To qualify for ECO4 measures (including solar as a secondary measure), you generally need to meet both of the following conditions:
1. Property condition
Your home must have a poor energy efficiency rating — typically EPC D or below (E, F, or G). The scheme is specifically designed for properties that are difficult or expensive to heat. You will need an up-to-date EPC or the installer will arrange one.
2. Qualifying benefits
At least one member of the household must receive one of these benefits:
- Universal Credit
- Pension Credit (Guarantee Credit)
- Child Tax Credit
- Working Tax Credit
- Income-related Employment and Support Allowance (ESA)
- Income-based Jobseeker's Allowance (JSA)
- Income Support
- Housing Benefit
- Child Benefit (subject to income threshold — currently £31,000/year or less)
Homeowners and renters can both qualify, though landlords must contribute at least one-third of the cost for rental properties (known as the landlord contribution requirement).
Local Authority Flex (LA Flex)
There is also an LA Flex route where your local council can refer households that do not receive qualifying benefits but are in fuel poverty or low income. This is less common and availability varies by council area. Contact your local council's housing or energy team to ask whether they have an active LA Flex referral scheme.
How to apply for ECO4
You do not apply to a central ECO4 application portal. Instead:
- Contact your energy supplier — call and ask about ECO4 eligibility. All major suppliers have ECO4 teams. Tell them your benefits status and ask about your property's EPC rating.
- Use Simple Energy Advice — the government's free advice service at simpleenergyadvice.org.uk (or call 0800 444 202) will check your eligibility and refer you to approved installers.
- Contact an approved installer directly — some ECO4 installers (not us — we are not currently an ECO4 registered installer) can assess your eligibility and process the application on your behalf.
Be aware of cold-calling companies claiming to offer "free solar panels under the government scheme." Legitimate ECO4 installation does not involve unsolicited calls or high-pressure door-to-door sales. Always verify through your energy supplier or the Simple Energy Advice service.
Solar grants if you do not qualify for ECO4
Most homeowners will not qualify for ECO4, either because they receive no qualifying benefits or because their property has a reasonable EPC rating already. If that describes you, here is what is actually available:
0% VAT on solar panel installation
The most significant financial benefit available to all UK homeowners — residential solar panel installation is zero-rated for VAT until March 2027 (and expected to be extended). On a typical 4kWp system costing £7,000–£8,500, this saves you £700–£850 compared to the standard 20% VAT rate. This applies automatically — you do not need to claim it.
Smart Export Guarantee (SEG)
Once your solar panels are installed, you are entitled to be paid for surplus electricity you export to the grid under the Smart Export Guarantee. Rates vary by supplier — typically 3–15p/kWh. The best SEG rates currently available (2026) are from Octopus Energy (Agile export) which can reach 20–30p/kWh during peak demand periods. A typical 4kWp system in Milton Keynes might export 700–1,000kWh/year, earning £70–£150/year at standard SEG rates or more on variable export tariffs.
Local council energy grant schemes
Some councils run their own grant schemes for solar panels, particularly for low-income homeowners who miss the ECO4 threshold. These are worth checking with your local council — availability varies significantly and schemes open and close periodically.
Great British Insulation Scheme
Not solar-specific, but if your home has a D, E, F, or G EPC rating, the Great British Insulation Scheme can fund insulation work that reduces your heating bills and improves the EPC. Better insulation before solar installation reduces the size of system you need and improves payback.
The 0% VAT benefit — what it means in practice
The zero-rate VAT on solar panels is genuinely valuable, even if it does not make the same headlines as "free solar." Here is what it means for a typical Milton Keynes home:
| System Size | Price at 0% VAT | What You Save vs 20% |
|---|---|---|
| 3kWp (6 panels) | £5,500–£6,500 | £916–£1,083 |
| 4kWp (8 panels) | £6,500–£8,000 | £1,083–£1,333 |
| 5kWp (10 panels) | £7,500–£9,500 | £1,250–£1,583 |
The VAT saving applies automatically when you use a registered MCS-certified installer. You do not need to apply for anything — it is built into the price.
Smart Export Guarantee — getting paid for your solar
The Smart Export Guarantee (SEG) replaced the old Feed-in Tariff in 2020. Any supplier with more than 150,000 customers is legally required to offer an SEG rate. You apply to your energy supplier after installation — it takes minutes and requires your MCS certificate (which your installer provides).
Current best SEG rates (2026): Octopus Energy variable export (Agile) can pay up to 30p+ during peak demand periods. Fixed-rate options typically offer 3–8p/kWh. For most solar owners, the variable export options from Octopus provide the best annual SEG income.
What does solar cost without a grant?
Even without ECO4 funding, solar panels represent a strong financial investment for most UK homeowners in 2026. Here is what you can expect for a Milton Keynes property:
| System | Installed Cost | Annual Saving (est.) | Payback Period |
|---|---|---|---|
| 3kWp solar only | £5,500–£6,500 | £600–£800/yr | 7–9 years |
| 4kWp solar only | £6,500–£8,000 | £700–£1,000/yr | 7–10 years |
| 4kWp solar + 10kWh battery | £12,000–£15,000 | £1,100–£1,500/yr | 8–12 years |
Savings estimates based on 50% self-consumption, electricity at 26p/kWh, SEG export at 6p/kWh. Milton Keynes receives approximately 1,050kWh/kWp/year of solar generation. Actual results vary by roof orientation, shading, and household usage.
Solar panels last 25–30 years. The payback period (7–10 years) leaves 15–20 years of essentially free electricity generation. That is the real case for solar — regardless of whether you receive any grant funding.
MCS certified solar installation — Milton Keynes and surrounding areas
We install solar panels with 0% VAT built in. Our quotes include everything — panels, inverter, mounting, installation, MCS certification, and DNO notification. No hidden extras. Free survey and honest assessment of whether solar makes financial sense for your property.
Solar Panel Installation Get a Free Quote