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Government Funding for Solar Panels and Battery In Wales [Updated April 2026]

  • Ian Mach
  • Jan 14
  • 5 min read

Updated: May 3


Government schemes to help with funding the installation of solar panels and battery storage in Wales currently include Green Homes Wales, Nest, ECO4 and its replacement the Warm Homes Plan.


Note: The ECO4 scheme is ending at the end of 2026 and is being replaced by the Warm Homes Plan. We will update this article when more information becomes available. In the meantime, it may be worth still enquiring with your energy supplier whether they still have ECO4 funding available.


In the article below we will look first at the non-means-tested schemes and then the means-tested options.


  • Not Means-tested
    1. Green Homes Wales

    A Welsh Government initiative, managed by the Development Bank of Wales, designed to support eligible homeowners in making energy efficient improvements to their homes including solar PV and/or battery storage.


    For projects which include the installation of solar PV and/or battery storage, the Scheme offers interest free financing and grant funding:

    • Flexible financing:

      • Interest free loans ranging from £1,000 to £25,000 with repayment terms up to 10 years. For larger projects, terms may be extended.

      • Enjoy a 6-month upfront repayment holiday while your new energy efficiency measures begin delivering results.

    • Grant funding (for projects which also include installation of a heat pump):

      • Access to grant funding alongside loans.


    The Scheme also provides expert guidance with a fully funded access to a Retrofit Coordinator to create a detailed home assessment providing energy-efficiency and decarbonisation recommendations tailored to your individual circumstances.


    To qualify for the scheme:

    • you will not be means tested and will be required to pass credit checks and affordability assessments

    • your home must be located in Wales; be owned by you; be your primary residence; and not be a new build property (i.e. homes that have been built in the last 6 months and that have not previously been occupied)


    Listed buildings - the scheme does not currently support homes that are listed.


    Private landlords - Landlords cannot currently apply to this Scheme but should visit Climate Action Wales for further advice.


    For more information about the Scheme and to apply, homeowners should register their interest at https://developmentbank.wales/green-homes-wales


  • Means-tested

    • Nest

      A Welsh government-backed scheme providing advice and funding for energy improvement measures including solar panels and battery storage.


      You could be eligible for free home energy efficiency improvements such as solar panels and battery storage if you meet all 3 conditions:

      1. you own or privately rent your home (not local authority or housing association)

      2. you receive a means tested benefit or you live in a low-income household

      3. your home has an energy performance certificate (EPC) rating of 54 (E) or less; or 68 (D) or less and someone in your household has an eligible health condition.


      If your home has an EPC rating of 68 (D) or less but no-one in your household has an eligible condition, your details will be placed on a reserve list.


      If you are not eligible, Nest can help you find other schemes, that suit your circumstances. These include ECO 4, Green Homes Wales, Connected for Warmth and the Boiler Upgrade Scheme.


      For more information about the Scheme and to apply, homeowners should visit https://www.gov.wales/get-free-home-energy-efficiency-improvements-nest/apply


    • Warm Home Plan (due to start 2026)

      The UK Government’s Warm Homes Plan is a major £15 billion initiative designed to make homes more energy efficient, reduce household bills, and accelerate the transition to low-carbon technologies.


      The scheme includes £5 billion in grant funding aimed at supporting lower-income households—expected to include those with a combined annual income below £35,000—helping to make upgrades more accessible without upfront cost. In addition, a further £2 billion will be made available through zero or low-interest loans, giving other households an affordable way to invest in energy improvements.


      The Warm Homes Plan supports a wide range of renewable and energy-saving measures, including solar panels and battery storage systems, enabling homeowners to generate and store their own electricity.


      The scheme will be available across the entire UK, including England, Wales, Scotland, and Northern Ireland, making it a nationwide opportunity to improve home energy performance and reduce reliance on traditional energy sources.


      When will it become available?

      The Warm Homes Plan was announced in January 2026, with high-level funding and eligibility information already confirmed. However, more detailed guidance is still being developed.


      Homeowners can expect further information to be released progressively throughout 2026, including full eligibility criteria, application processes, and details of how grant and loan funding will be accessed. The scheme is expected to be introduced in phases, with updates provided as the rollout progresses.


      In the meantime, early indications suggest the scheme will be widely accessible and support a broad range of energy-saving improvements, allowing households to start planning ahead.


    • ECO4 (ending December 2026)

      The Energy Company Obligation 4 (ECO4) scheme is a UK government program designed to help households experiencing fuel poverty improve the energy performance of their homes and reduce ongoing energy costs. Support is available for a range of upgrades, such as insulation, low-carbon heating technologies, and solar PV systems.


      It is important to note that most UK households are not eligible for ECO4 funding, and those who are, can only get solar installations supported where the property’s primary source of heating is powered by electricity.


      The scheme applies to homeowners as well as tenants.


      ECO4 is scheduled to end on 31 December 2026.

      You could be eligible for ECO if you receive at least one of the following benefits:

      • Child Benefit

      • Pension Guarantee Credit

      • Income-related Employment and Support Allowance (ESA)

      • Income-based Jobseeker's Allowance (JSA)

      • Income Support

      • Universal Credit

      • Housing benefit

      • Pension Credit Savings Credit

    Any energy company with more than 150,000 customers is automatically an ‘obligated supplier’ and is responsible for delivering the home improvement measures. Any obligated supplier can deliver these measures to eligible households in England, Wales, and Scotland, regardless of who supplies their energy to.


    For more information about the Scheme and to contact an obligated supplier, follow the this link: https://www.ofgem.gov.uk/environmental-and-social-schemes/energy-company-obligation-eco/energy-company-obligation-eco-homeowners-and-tenants


ECO4 Flex

The Local Authority and Supplier Flex element of the ECO4 scheme (ECO4 Flex) allows local authorities (LAs), and the Welsh government (referred to in the scheme as Devolved Administrations or DAs), to refer households to an obligated energy supplier. LAs and DAs can identify low-income or vulnerable households who are not in receipt of the means tested benefits which would make them eligible for ECO4, but who may benefit from energy efficiency improvements.


Energy suppliers can also refer households under ECO4 Flex, where they are either struggling with persistent fuel debt and are supported by suppliers or are using pre-payment meters and have regularly been unable to stay connected to their fuel supplies due to financial hardship.

If your LA or DA is participating in the scheme, they can make a joint referral for both ECO4 Flex and Great British Insulation Scheme Flex, as the eligibility criteria are similar. If a supplier decides to take the referral forward, a retrofit assessor would determine which of the schemes is suitable, and the specific measures that would benefit your home.


It is important to note that eligibility for ECO doesn’t necessarily mean that an energy supplier or installer will decide to install energy efficiency measures in your home.


You could be eligible under ECO4 Flex if:

  • You live in a property that requires energy efficiency upgrades and:

    • You have a combined gross annual household income under £31,000 or

    • A person in your household has a severe or long-term health condition that is adversely affected by living in a cold home, and is due to one of the following:

      • a cardiovascular condition,

      • a respiratory disease,

      • limited mobility

      • immunosuppression


There are various other criteria that LAs or DAs can use to identify low-income, vulnerable and fuel-poor households. Please contact your LA or DA, or visit their website, to find out if they are participating and if you could be eligible. Your LA or DA may allow self-referral, further information will be available on their website or by contacting them directly.  

 
 
 

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