Solar Panel Grants in Scotland: Your Complete Guide in 2025

Considering how expensive solar panels in Scotland can be, every bit of savings can help. Fortunately, the government has numerous programs that can ease the strain on your wallet. In fact, Scottish solar panel grants like the ECO4 scheme can even earn residents free solar panels, while other policies can help reduce VAT or help you earn back money.

Let’s go over some of the most important solar grants Scotland has to offer.

If you’re considering solar panels, grants are not the only way to save money. Another important factor is the installer you choose, which is why you should find a reliable one with the best prices. This can ordinarily take hours of laborious research, but with our service, we can take that down to a few seconds.

Simply fill out a 30-second form, and you’ll receive up to 4 free, non-binding quotes from installers in your area. Click the button below to get started.

The main incentives and Scottish grants for solar panels are the ECO4 scheme, 0% VAT scheme, Home Energy Scotland Grant and Loan, and the Smart Export Guarantee. Many of the grants can provide solar panels for UK homes as well as Scotland.

The fourth iteration of the Energy Company Obligation (ECO4) aims to improve energy efficiency measures by adding features such as glazing, insulation, and even solar panels. The ECO4 scheme applies to homes all over the UK and can partially subsidise or fully pay for solar panel systems in Scotland.

It’s important to note that your solar panel installation is not a guaranteed outcome. While the grant can provide free solar panels or partial funding, this will depend on the approval of an assessor. Once your home is assessed, you will get a recommendation based on what your home needs. Due to this system, an assessor may not always recommend solar panels.

The eligibility for ECO4 includes:

Here are the benefits that qualify homeowners for ECO4 funding in 2025:

Another aspect of ECO4 is household earnings compared to the size of one’s family. Income thresholds per family type are as follows:

The great thing about the 0% VAT scheme is that you don’t have to apply for anything. It is automatically available to anyone who buys solar panels, down from the original 20% VAT from a decade ago. So, as an example, if you buy a 6kW system and battery, you save £2,850. This can significantly decrease the solar panel cost per kW added, making it especially cheaper to buy larger systems.

Here’s a table breaking down the savings under the current price levels:

Anyone is eligible for this scheme since it is a tax relief from the supplier side, which lowers the sales prices for consumers. The VAT policy started in April 2022 and is set to last until March 2027, making now a great time to procure solar panels.

For context on how much this government incentive helps, a 4kW solar system is 25% cheaper under the current VAT policy, 0% VAT also applies to solar battery prices, cutting costs by between £2,000 and £4,000 for the average home.

Home Energy Scotland’s grant and loan program provides a range of options for sustainable heating systems that can save money on heating and electricity. However, since this grant is geared towards heating, it only pays for photovoltaic panels if you are also buying solar thermal panels alongside it.

This can be an advantage or a disadvantage, depending on whether you are interested in both types of panels. To this end, the program can provide a £5,000 loan towards the combined system.

For most energy-saving measures, you can usually earn up to £10,000 by combining the grant and the loan. However, there is no grant available for photovoltaic panels. Therefore, this program offers a lower amount than other energy-saving measures, providing £5,000 in funding.

As with any loan, it will have to be repaid. Thankfully, the loan has no interest on the payback measures, so what you get is what you pay out with no additional costs.

There are 3 types of reports that can provide recommendations for your home:

The Smart Export Guarantee enables homeowners to export excess electricity back to the grid. By doing so, they can earn money on top of their savings. The amount of money they can make depends on the export rate that energy providers set, which can vary from company to company.

The average SEG tariff is around £0.10 per kWh, but there are some that are higher than this. The best tariffs include:

To be eligible for the SEG tariff, you need a few things:

Yes, it is possible to get free solar panels through the ECO4 scheme. However, this is subject to a survey of your home done by an assessor who will make the final decisions as to what measures are suitable for your home. Additionally, you need to be from a low-income household and have an energy label between D and G.

While other grants do not offer free solar panels, they can help make installation cheaper or provide better returns on investment. The 0% VAT is making them more affordable for consumers while the SEG tariff makes it possible to earn more from your panels by exporting energy back to the grid.

These grants may not last forever, so now is the best time to get solar panels for UK homes.

Now that you know more about Scottish government solar panel grants, you may be interested in ordering a system for yourself.

If you’re looking for solar panels, you need to be sure you have the right installer. A good one can provide you with the best prices and make sure your installation goes smoothly. The trouble with finding one is that it can take hours of research and reaching out to various companies. If that sounds like too much of a hassle, our service might be the solution for you.

Just fill out a 30-second form, and we’ll provide you with up to 4 free, non-binding quotes from trusted local installers. Click the button below, and we’ll handle the rest.