Government grants and incentives can dramatically improve the economics of rooftop solar payback period installation, reducing upfront costs and shortening payback periods. In 2026, substantial support is still available in several major markets — here is what you can claim in the UK, US and EU.
United Kingdom
The UK does not offer a direct solar panel grant for most homeowners, but the Smart Export Guarantee (SEG) requires energy suppliers to pay households for surplus electricity exported to the grid. Export rates vary by supplier from around 5p to 15p per kWh, providing a revenue stream for solar households.
Social housing residents and lower-income households may qualify for free or subsidised solar panels through ECO4 (Energy Company Obligation) scheme. Some local authorities also run grant programmes for solar installation. The VAT rate on residential solar installations was reduced to zero in 2022, providing an ongoing cost saving equivalent to a 20% price reduction.
United States
The federal Investment Tax Credit (ITC) provides a 30% tax credit on the full cost of a residential solar installation, including installation labour and equipment. This is available to most US homeowners with a tax liability and is currently scheduled to remain at 30% through 2032. Many states offer additional incentives on top of the federal credit, including cash rebates, property tax exemptions and net metering programmes.
European Union
EU member states have implemented varied solar incentive programmes. Germany offers low-interest financing through KfW bank and feed-in tariffs for small rooftop systems. France has a feed-in tariff for systems under 100 kW. Italy has introduced a solar bonus programme providing tax credits of up to 50%. Check your national government website for the current scheme applicable in your country.
