Thinking about getting solar panels but unsure about the cost and government grants? You’re not alone. Many UK homeowners miss out on funding simply because they don’t know what’s available. In this 2025 guide, we’ll break down solar panel costs, funding options, and whether government grants are actually worth it.
Why UK Homeowners Are Missing Out on Solar Panel Grants
The “Free Solar Panels” Scam – What Really Happened?
A decade ago, the Feed-in Tariff (FiT) allowed homeowners to get free solar panels from companies in exchange for them keeping the profits from excess energy sales. But in 2019, FiT ended. For a while Solar panels were only available to purchase with some incentives until government initiated the Energy Company Obligation (ECO Scheme) back in 2013.
✅ So, are free solar panels still available in 2025?
Yes – but you need to qualify for a government supported grant.
✅ What’s available now?
Instead of free panels, the government now offers grants and incentives to help cover installation costs.
Are You Eligible for a Solar Panel Grant? (Check in 60 Seconds)
Many homeowners don’t realise they qualify for funding. Eligibility depends on:
- ✔ Household income – Some schemes prioritise low-income families.
- ✔ Property type – Detached homes often qualify for bigger grants.
- ✔ Home ownership – Some schemes require you to be a homeowner.
💡 Pro tip: Even if you don’t qualify for a full grant, you might still be eligible for partial funding or low-interest government loans.
How Much Do Solar Panels Cost in the UK (2025 Edition)?
On average, here’s what you can expect to pay for a standard residential solar panel system if you purchase it:
| System Size | Avg. Cost (Before Grants) | Est. Annual Savings | Payback Time |
| 3kW | £4,500 – £6,500 | £350 – £450 | 10–12 years |
| 4kW | £5,500 – £8,000 | £500 – £650 | 8–10 years |
| 5kW | £7,500 – £10,000 | £650 – £800 | 7–9 years |
💰 Hidden Fees You Might Not Expect:
- Scaffolding costs: £500–£1,000 if needed
- Upgrading your meter: £100–£200
- Battery storage (optional but useful): £3,000–£6,000
How Long Does It Take to Break Even?
💡 Without government grants and energy savings, many homeowners break even in 6–10 years.
What Grants Are Available for Solar Panels in the UK? (2025 Update)
Government Schemes You Need to Know About
Here are the main grants and funding options for solar panels in the UK this year:
1️⃣ Boiler Upgrade Scheme (BUS) – Up to £7,500
- Helps cover heat pumps and solar thermal panels.
- Ideal for homeowners looking to combine solar panels with heating upgrades.
2️⃣ ECO4 Scheme – Free Solar Panels for Low-Income Homes
- Who qualifies? Households receiving benefits (e.g., Universal Credit, Pension Credit).
- Covers solar panel installation costs in full for some homes among other heating measures, if you qualify!
3️⃣ Smart Export Guarantee (SEG) – Earn Money Back
- Instead of a grant, this pays you for selling excess solar energy to the grid.
- Top rates (2025)*:
- Octopus Energy – 15p per kWh
- E.ON – 12p per kWh
- British Gas – 10p per kWh
📌 Need help applying? We can handle both grant application and installation process for you. Find out below if you’re eligible for the ECO4 grant!
*prices at the time of writing the article
Solar Subsidies & Alternative Funding Options in the UK
Not Eligible for a Grant? Here’s How to Cut Costs Anyway
If you don’t qualify for government funding, try these options:
✔ Green Energy Loans – Many UK banks offer 0% interest loans for solar panels.
✔ Community Solar Projects – Some councils offer group solar schemes with discounts.
✔ Solar Leasing – Pay monthly for solar panels instead of buying them upfront.
How to Stack Multiple Grants & Funding for Maximum Savings
💡 Did you know you can combine multiple incentives?
Example: Apply for ECO4 (free panels) + use SEG (sell energy) = almost free energy!
Are Solar Panels Worth It in the UK in 2025?
ROI Breakdown: When Do Solar Panels Pay for Themselves?
Who should NOT get solar panels?
- ❌ If your roof is heavily shaded – Trees or buildings blocking sunlight reduce efficiency.
- ❌ If you plan to move soon – ROI takes time, so short-term homeowners may not benefit.
- ❌ If your energy usage is very low – Lower savings mean a longer payback time.
The biggest question homeowners ask before investing in solar panels is: how long will it take to see a return on investment (ROI)?
The payback period depends on installation costs, energy savings, and available grants. On average, UK homeowners break even in 7 to 12 years. Here’s how:
- ✅ Annual Savings: A typical 4kW solar system reduces electricity bills by £500 – £650 per year.
- ✅ Installation Cost (Before Grants): Around £5,500 – £8,000.
- ✅ Payback Time (With Grants): Immediate! No cost if you qualify for the grant!
How to Apply for a Government Grant for Solar Panels
Step-by-Step Guide to Securing Your Grant in 2025
- ✅ Step 1: Check if you’re eligible for the free solar panels government scheme using the button below.
- ✅ Step 2: Our Energy Advisor will book a no-obligation survey and schedule an installation if you qualify.
- ✅ Step 3: Get your free solar panels and start saving £££ while keeping your home warm & cosy!
Solar Panels vs Other Green Energy Options: What’s Best in 2025?
- Solar Panels → Best for reducing electricity bills.
- Air Source Heat Pumps → Best for replacing gas heating.
- Smart thermostats → Pair best with mother technology to optimise energy usage.
- Battery storage → Ideal if you want to store excess solar energy instead of selling it.
Final Verdict: Should You Get Solar Panels in 2025?
If you own a home in the UK, solar panels are one of the smartest investments in 2025. With rising electricity costs, government grants, and energy savings, most homeowners see a full return on investment within 6 – 10 years if you decide to purchase them or immediately if you get them installed through government funding like ECO4 Scheme.
📍 Apply today to check if you qualify—funding is limited!
