Solar Panel Grants in London (2026)
Here is the honest answer most solar sites will not give you: there is no solar purchase grant in London or anywhere in the UK. Two things genuinely improve the numbers: 0% VAT on installations until 31 March 2027, and a SEG export tariff with a fair rate.
Accurate as at June 2026. Schemes and tariffs change - check official sources before committing.
No purchase grant. No catch. Two real levers.
The UK has no national solar purchase scheme and no regional subsidy in London. The price an installer quotes you is the real price: a 4kW system typically costs £5,500-£7,500 installed, with some quotes reaching £8,500 (0% VAT included, indicative June 2026). If anyone advertises "free solar through a government scheme" in London, treat it as a red flag. What does help: 0% VAT until 31 March 2027 and SEG export earnings.
0% VAT Until 31 March 2027
0% VAT on solar installations
Residential solar installations are zero-rated for VAT until 31 March 2027 (then 5%). It is applied automatically by the installer - there is no paperwork for you - and it is typically worth £1,000-3,000 compared with the standard 20% VAT rate.
Official gov.uk guidance →Typically £1,000-3,000 on a residential solar installation compared with the standard 20% VAT rate.
Nothing. The installer applies the zero rate on the quote. After 31 March 2027 the rate moves to 5%.
Low-income and fuel-poor households may qualify for energy efficiency support through ECO4 and related Warm Homes schemes - check eligibility on gov.uk. gov.uk
SEG Export Rates in London
The SEG (Smart Export Guarantee) is what energy suppliers pay for the solar you export. Suppliers set their own rates - the SEG only requires the rate to be above zero - and rates change regularly. Compare current tariffs before you commit.
| Tariff | Rate (June 2026) | Notes |
|---|---|---|
| Octopus Outgoing | 12p/kWh | Flat rate on every exported kWh |
| Octopus Intelligent Flux | Up to 32.17p/kWh at peak | Requires a home battery plus the matching import tariff |
| Good Energy | Up to 25p/kWh | Exclusive rate - eligibility conditions apply |
Rates as at June 2026; tariffs and eligibility change regularly. Check each supplier's current offer before signing up.
Why Self-Consumption Beats Exporting
Grid power in the UK costs around 25p/kWh (Ofgem price cap average; it changes quarterly), while a typical SEG flat rate pays around 12p/kWh for exports. That means every kWh you use at home is worth roughly double one you send to the grid. The cheapest "grant" available in London is shifting your washing, dishwasher and EV charging into daylight hours, or adding a battery to carry daytime solar into the evening.
Solar in London
London sits in the sunnier southern half of the UK, and plenty of competing installers keep quotes sharp. The practical constraints are roof space and shading on terraces and flats, so an honest roof survey matters more here than headline panel specs.