Government Funding for Solar Panels and Battery In Wales

Government schemes to help with funding the installation of solar panels and battery storage in Wales include Green Homes Wales, Nest, ECO4 and ECO4 Flex. Green Homes Wales is not means-tested whilst the others are.

With the imminent end of the ECO4 scheme, we will be updating this article when more information about its successor is released.

Not Means-tested

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

ECO4

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.

***January 2026 Update***

Scheme ends on 31 March 2026

the ECO4 is scheduled to end on 31 March 2026. That deadline is fast approaching, and as the funding landscapes shift, homeowners, landlords, installers, and policymakers are all asking: "what comes next?"

What Could Replace ECO4?

1. A Short Extension or Transition Period

   • The government has consulted in summer 2025 on extending ECO4 by 6–9 months to maintain support while successor arrangements are finalised. Suppliers may also be allowed to “carry over” delivery obligations to a future programme, helping maintain continuity and avoid abrupt cut-offs in March.

     
     

2. The Warm Homes Plan Takes Centre Stage

   • The Warm Homes Plan is the most significant policy initiative on the horizon. It aims to fund a broad range of energy efficiency and low-carbon heating measures across the UK. While not a direct replacement for ECO4, it represents a larger funding package intended to deliver deeper decarbonisation outcomes and broader support, likely via social housing funds and local grants. However, details on the post ECO4 date remain incomplete.

     
     

3. A Broader “Home Upgrade Obligation”

   • Alongside extensions and the Warm Homes Plan, there’s ongoing consultation about a new type of home upgrade obligation that could sit between ECO-style supplier obligations and taxpayer‑funded grants. This idea isn’t finalised, but would aim to combine the strengths of both approaches.

So What Should Homeowners and the Sector Do Prior To The End Of ECO4?

With the landscape in flux, the guidance we’re hearing from organisations tracking these changes is consistent.

1. Act sooner rather than later if you qualify for ECO4

   • Submitting applications and securing work before the scheme ends provides the best chance of accessing support under the current rules.

     
     

2. Keep informed about Warm Homes Plan announcements

   • Because this programme will likely be the biggest successor to ECO4, understanding how the grants will be allocated and when should be a priority for homeowners and installers alike. Consider diversifying services (e.g., decarbonisation packages, hybrid heating systems) and ensure relevant personnel within the business are appropriately trained for any possible changes which may occur.

     
     

3. Expect the policy focus to broaden

   • Future funding mechanisms are likely to emphasise whole‑house decarbonisation, heat pump uptake, solar and battery combinations, and tighter energy performance standards, signalling a shift from basic fuel poverty support toward deeper net‑zero outcomes.

***End of January 2026 Update***

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 Scottish and Welsh governments (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.