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Government Incentives and Grants for Solar Power in the UK

What solar deals do the Government offer?

The government provides a number of incentives and grants to encourage the use of solar power as the UK continues its transition to clean and renewable energy sources. These programmes seek to increase the availability and affordability of solar energy for Americans at home and in business. This blog post will examine the UK government's solar power incentives and grants, assisting you in understanding your financial support options and maximising the advantages of going solar.

1. Feed-in Tariff (FiT) Scheme:

Existing users continue to gain from the Feed-in Tariff (FiT) scheme, which closed to new applications in 2019. In accordance with this plan, companies and homeowners get compensated for the electricity that solar panels enable them to produce. Two different payment options are available under the FiT scheme: the Generation Tariff, which compensates you for each unit of power you produce, and the Export Tariff, which compensates you for any excess electricity exported back to the grid. This incentive is still available to current participants even though it is no longer valid for new installations.

2. Smart Export Guarantee (SEG):

The Feed-in Tariff programme has been replaced with the Smart Export Guarantee (SEG). Energy providers with more than 150,000 clients are required by the SEG to provide a fee for the extra electricity that private residences export to the grid. This enables owners of solar power systems to profit from the extra energy they produce. In order to ensure that homeowners are fairly compensated for their exported solar energy, the SEG fosters competitive pricing and offers flexibility in the selection of energy providers.

3. Renewable Heat Incentive (RHI):

The Renewable Heat Incentive (RHI), while largely focusing on renewable heating systems, can also assist solar thermal installations. Homeowners and businesses that generate heat from renewable sources, such as solar thermal panels, are given financial incentives through the RHI. You can receive long-term payments based on the volume of renewable heat generated by installing solar thermal systems. The RHI promotes the use of solar thermal technology, reducing reliance on heating systems powered by fossil fuels.

4. Green Homes Grant:

In 2020, the Green Homes Grant was introduced, offering financial assistance for solar power installations among other energy-efficient home upgrades. Homeowners can use the grant to pay for part of their solar power system installation even if the programme's primary focus is on insulation and low-carbon heating. Improved energy efficiency, lower carbon emissions, and assistance with the switch to renewable energy sources are the main objectives of the Green Homes Grant.

5. Local Authority Grants and Incentives:

Some municipal administrations provide subsidies and incentives to encourage the use of solar electricity in addition to national campaigns. These awards can offer financial assistance, guidance, or discounts on solar panel installations, depending on the locality. To learn about any local grants or incentives, check with your local council or authority.


The UK government offers a number of grants and incentives to promote the use of solar energy. Homeowners and businesses can take advantage of a number of programmes, including the Green Homes Grant, the Smart Export Guarantee, the Renewable Heat Incentive, and the Feed-in Tariff system (for current participants). These incentives seek to increase the financial viability of solar energy, lower carbon emissions, and aid the nation's transition to clean and renewable energy sources. To maximise the advantages of solar electricity for your house or business, investigate these opportunities, speak with solar contractors, and utilise the financial assistance offered.

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