Grants for Solar Panels Wales (2023 Guide)

Solar panels are an excellent way of generating your own electricity all while helping the environment.

But it’s hard to ignore the initial expense of a solar panel’s installation costs, which begs the question: Can you get grants for solar panels in Wales?

Luckily, the answer is yes and we’ve put together a list of all the solar panel grants you could benefit from in 2023!

Let’s get straight into it:

ECO4 Scheme

The first grant on our list is the ECO4 Scheme, which provides funding for households in Wales to make energy-efficient improvements.

Most commonly, ECO4 is used for insulation installation, but homes could also receive up to £14,000 towards solar panel installation (amongst other energy-saving measures like heat pumps).

However, this scheme is only available to people that receive government benefits while living in a home with an Energy Performance Certificate (EPC) or D or below. Discover what government benefits will allow households to qualify for the ECO Scheme in our blog post.

Households can also exercise ECO4 Flex, which allows Local Authorities to appeal for ineligible homes seeking an ECO4 upgrade. This could be because the home earns less than £31,000/pa, have health issues due to their cold home, or they are a vulnerable person.

The fourth phase of the Energy Company Obligation (ECO) Scheme will run until 2027 and you can apply for a grant by contacting a member of the So Eco team today.

Nest Scheme

The next scheme on our list is Nest, a grant exclusively open to those living in Wales.

Through Nest, Welsh homes can benefit from free, impartial advice on how to make your home warmer and more energy efficient. Eligible households can also be guided towards free home improvements, such as insulation and solar panels.

In addition to solar panel installation, Welsh homes could also upgrade their boiler, central heating and insulation.

To be eligible for Nest, Welsh homes must:

  • Own the property or be renting a property privately.
  • Be inefficient and expensive to heat.
  • Have one person who receives means-tested benefits or has a mental health, circulatory or chronic respiratory condition and a below-threshold income (£16,105).

Smart Export Guarantee

While it’s not technically a grant for solar panels in Wales, the Smart Export Guarantee (SEG) is an excellent way to see a return on investment much sooner than expected.

In short, the SEG allows Welsh households to receive payments from energy suppliers for any electricity they export back to the grid from their solar panels or other renewable technology generators (such as wind turbines).

The payment rate is variable and depends on which energy supplier you choose. Currently, the highest SEG tariff rate stands at 15p/kWh.

Once you have secured your grant for solar panels in Wales, the SEG is a scheme you must consider in 2023.

0% VAT until 2027

Much like the last point, this isn’t exactly a solar panel grant, but it is a great way to save money on your investment.

Thanks to a temporary tax measure announced by the government, UK homes do not have to pay any VAT on the installation of green energy making now the best time to invest in renewables.

Homes across Wales could save up to £1,000 in tax from installing solar panels, in addition to an extra £300 a year on their energy bills.

This tax benefit will last until 2027 and does not depend on your income or benefits, meaning anyone can take advantage.

Is it worth getting solar panels in Wales?

With over 73,000 Welsh homes already benefiting from solar panels, it’s safe to say Wales is a great location to invest in a solar PV system.

With areas like Cardiff gaining around 2,055 hours of sunshine a year (652 hours more than the UK average), Wales has the highest potential for solar panels in the UK.

In fact, in 2021 Wales produced 1,221 megawatts of solar highlighting the potential of solar energy in Wales.

You can discover more about how effective are solar panels in the UK in our big post.

How many solar panels do I need?

How many solar panels you need for your property depends on a range of factors, including how big your house is, your average energy usage and the average sun hours in your area.

Some homes need up to 24 panels to produce enough electricity for the entire property, while others need only three.

After working out how many solar panels you need, you must then work out the best position for solar panels depending on your roof angle and the direction of your roof.

How much do solar panels cost in Wales?

The cost of a solar panel system can vary massively, depending on the size of the system, initial installation costs and whether you decide to have a solar battery.

Another key factor to consider is whether you decide to apply for one of the solar panel grants mentioned above.

However, with a typically 3.5 kilowatt-peak solar panel costing around £5,500, deciding against a solar panel grant would be a very costly endeavour.

What other government grants can I get in Wales?

Did you know that there are far more than just grants for solar panels in Wales?

You could also benefit from free insulation grants in Wales, helping reduce your energy bills and make your home warmer.

Better yet, you can apply for both solar panel grants and insulation grants with So Eco.

We are registered providers of the ECO4 and Great British Insulation Scheme, meaning we can help you apply for both solar panel and insulation grants in Wales.

To find out more about government grants and other schemes available to Welsh households, contact a member of the So Eco team today or complete our free online eligibility checker. We’d be happy to answer any questions you have.

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