Solar Panel Grants in the Midlands 2026

Complete guide to available grants, schemes, and funding options for solar panels across Birmingham, Leicester, Coventry, and the wider Midlands region.

0% VAT
Saving Available
ECO4
Available Now
SEG
Payments Ongoing
MCS
Required for Grants

Overview: Solar Panel Grants in the Midlands

Multiple grants and schemes are available for Midlands homeowners looking to install solar panels in 2026. The landscape of solar funding has evolved significantly, with a mix of automatic savings, income-based support, and ongoing payment schemes that make solar panels more accessible and financially attractive than ever.

The right scheme for your property depends on several factors including your household income, current energy efficiency rating, property type, and whether you own your home or rent. Some schemes, like the 0% VAT saving, apply automatically to all residential installations. Others, such as the ECO4 scheme, require eligibility assessments and formal applications.

At Midland Solar, we help you navigate the application process for all available grants and schemes. Our team handles the paperwork, eligibility assessments, and submissions, ensuring you access maximum funding for your installation. We are MCS-certified installers, which is a requirement for most government schemes and guarantees.

Available Solar Panel Grants 2026

20% Saving
All Residential

0% VAT on Solar Panels

Up to 100% Funded
Income-Based

ECO4 Scheme

£40-250/Year
All Solar Owners

Smart Export Guarantee

£7,500 Grant
Heat Pump Installations

Boiler Upgrade Scheme

Grant 1: 0% VAT on Solar Panels

How It Works

Since 1 April 2022, the UK government removed VAT from solar panel installations on residential properties. This means instead of paying 20% VAT on your solar system, you pay 0%. For a typical £8,000 installation, this saves you £1,600 automatically.

Who Qualifies

  • All residential properties in England, Scotland, and Wales
  • Applies to solar panels, inverters, and battery storage when installed together
  • Both owner-occupiers and landlords installing on residential properties
  • No income requirements or property conditions

How Much You Save

4kW System (£7,000):Save £1,400
6kW System (£10,000):Save £2,000
8kW System with Battery (£15,000):Save £3,000

Extended to 31 March 2027: The government has confirmed this 0% VAT rate continues until at least 31 March 2027, giving homeowners certainty for planning installations.

Grant 2: ECO4 Scheme

What's Covered

The Energy Company Obligation (ECO4) scheme is a government programme requiring large energy suppliers to fund energy efficiency improvements for qualifying households. The scheme primarily funds insulation measures, but solar panels can be included for properties meeting specific criteria.

Eligibility Requirements

  • Household receives means-tested benefits (Universal Credit, Pension Credit, Income Support, Child Tax Credit, Working Tax Credit)
  • Property has an EPC rating of D, E, F, or G
  • OR household income under £31,000 per year
  • Owner-occupier or private tenant with landlord permission

Midlands Areas with High ECO4 Eligibility

Birmingham

Parts of Handsworth, Sparkbrook, Aston, Erdington, and Perry Barr with high concentrations of eligible households.

Coventry

Areas including Foleshill, Wood End, Hillfields, and parts of Radford with significant ECO4 eligibility.

Leicester

Highfields, Braunstone, New Parks, and Beaumont Leys areas show strong eligibility for ECO4 funding.

Nuneaton

Camp Hill, Stockingford, and Abbey Green neighbourhoods with qualifying households for ECO4 support.

How to Apply

ECO4 applications must be made through approved installers like Midland Solar. The process involves:

  1. 1. Free eligibility assessment based on your circumstances
  2. 2. Property survey to identify suitable measures
  3. 3. Formal application submitted to energy supplier
  4. 4. Approval and installation scheduling
  5. 5. Post-installation certification and EPC update

Call Midland Solar on 01827 218833 for a free ECO4 eligibility check.

Grant 3: Smart Export Guarantee (SEG)

Get Paid for Excess Solar Electricity

The Smart Export Guarantee requires licensed electricity suppliers to pay you for surplus solar electricity you export back to the grid. This provides ongoing income throughout your solar panel's 25+ year lifespan, improving your return on investment significantly.

Best SEG Tariffs Available

Octopus Energy Outgoing Fixed

Stable fixed rate with reliable payments

15p/kWh
British Gas SEG

Available to British Gas customers

5.5p/kWh
EDF Energy SEG Export

Competitive rate for EDF customers

4.1p/kWh
Ovo Energy SEG

Standard SEG rate for all customers

4p/kWh

Typical SEG Earnings

4kW System (40% exported):£68-255/year
6kW System (40% exported):£102-383/year
8kW System (40% exported):£136-510/year

Earnings based on 4-15p per kWh export rate. Actual earnings depend on your household consumption patterns and chosen SEG tariff.

Requirements: MCS-certified installation and smart meter. Midland Solar handles SEG registration as part of our complete installation service.

Grant 4: Boiler Upgrade Scheme (BUS)

£7,500 Grant for Heat Pumps

The Boiler Upgrade Scheme provides £7,500 grants for air source heat pump installations and £6,000 for ground source heat pumps. Whilst this isn't directly a solar grant, combining heat pumps with solar panels creates an exceptionally efficient renewable energy system for your home.

How Solar + Heat Pump Work Together

  • Solar panels generate electricity that powers your heat pump, dramatically reducing running costs
  • Heat pumps are 300-400% efficient, turning 1kW of electricity into 3-4kW of heat
  • Battery storage allows you to store excess solar generation for evening heat pump operation
  • Combined system can achieve 80%+ energy independence from the grid

BUS Eligibility

  • Replacing an existing fossil fuel heating system (gas, oil, LPG boiler)
  • Property in England or Wales (Scotland has separate scheme)
  • Owner-occupier or landlord of residential property
  • Property has valid EPC certificate with no outstanding recommendations for loft or cavity wall insulation
  • MCS-certified heat pump installer (we are certified for both solar and heat pumps)

Scheme runs until 2028: The Boiler Upgrade Scheme is funded until 2028 with increased funding allocations, making now an excellent time to upgrade your heating system alongside solar installation.

Local Council Schemes

Birmingham City Council

Route to Zero

Birmingham's climate action programme offers advice, support, and potential funding for renewable energy installations.

Learn More

Warwickshire County Council

Green Homes Programme

County-wide programme supporting residents with energy efficiency and renewable energy upgrades.

Learn More

Leicestershire County Council

Environment Strategy

Environmental initiatives including support for solar panel installations and energy efficiency measures.

Learn More

West Midlands Combined Authority

Net Zero Neighbourhoods

Regional programme funding renewable energy projects across the West Midlands metropolitan area.

Learn More

Note: Local council schemes change frequently and may have limited funding. Contact your local authority directly or call Midland Solar on 01827 218833 for the latest information on council grants in your area.

Eligibility Matrix: Which Grants Can You Combine?

Grant SchemeCombine WithIncome RequirementsProperty RequirementsEPC Rating
0% VATAll schemesNo limitResidential onlyAny rating
ECO4Cannot combine with other grants for same workUnder £31k or means-tested benefitsOwner-occupier or private tenantD or below preferred
Smart Export GuaranteeAll schemesNo limitAny with solarAny rating
Boiler Upgrade SchemeCan combine with solar grantsNo limitOwner-occupierAny rating

How Midland Solar Helps with Grant Applications

Free Eligibility Check

We assess which grants and schemes you qualify for based on your property and circumstances, ensuring you access maximum funding.

Application Management

Our team handles all paperwork, submissions, and communications with grant providers and energy suppliers on your behalf.

MCS Certification

As MCS-certified installers, we ensure your installation meets all requirements for government schemes and guarantees.

Expert Local Support Throughout

Grant applications can be complex, with different schemes having varying eligibility criteria and documentation requirements. Midland Solar simplifies this process by managing everything for you. From initial eligibility assessment through to post-installation certification, our team ensures you receive all available funding and support.

Frequently Asked Questions

Ready to Access Solar Panel Grants?

Get a free grant eligibility assessment and discover how much funding you could receive for your Midlands solar installation.

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