Funding for Solar Panels in South Wales

A Guide for Residential Customers

Solar panels are a sizeable investment. They'll pay you back and then some (and add 2-4% to the value of your home) but there is an up-front cost to bear. So before you make the switch, you'll want to explore the grants and loans available.

If you live in South Wales, you'll find all the information you need in this post, which we'll keep up-to-date as new funding emerges.

IMPORTANT: your solar installation is VAT-exempt until March 2027.

Green Homes Wales - from Autumn 2024

The Welsh Government is teaming up with the Development Bank of Wales to make Welsh homes more energy efficient - great news for anyone who's looked at solar but been put off by repayments. Until now, support has been confined to homeowners who receive qualifying benefits, via the Nest and ECO4 schemes (see below). This move will finally make finance more affordable, allowing many families to switch across to solar.

FUNDING: Borrow up to £25,000 interest-free over a 10-year period.
ELIGIBILITY: Funding is for homeowners only, and not available to landlords.
TIMESCALE: The scheme launches in autumn 2024, with no official start date or end date confirmed.
APPLICATION: Register your interest here. When the scheme launches, they'll send a Retrofit Coordinator to assess your home and discuss a full set of options, from solar power to heat pumps, draught-proofing and insulation. In the meantime, talk to us and we'll get your solar plan ready for the first round of applications.

Nest Scheme - Welsh Government Solar Grant

A £50 million annual fund, providing grants for solar panels as well as insulation, boilers and heat pumps.

FUNDING: The grant will meet the full cost of improvements, up to £8,000.
ELIGIBILITY: You must meet all three conditions below:
- You own or privately rent your home (not local authority or housing association)
- You receive a means tested benefit or you live in a low-income household
- Your home has an EPC rating of 54 (E) or less; or an EPC rating of 68 (D) or less where you or a household member have an eligible health condition
TIMESCALE: No end date.
APPLICATION: Apply here or call 0808 808 2244. Or talk to us first and we'll help you plan your application.

ECO4 - UK Government Solar Grant (via local councils as Eco Flex)

A £1 billion annual fund, providing grants for solar panels as well as insulation, boilers, heat pumps, and other energy efficiency measures.

FUNDING: Grants will cover the full cost of a small solar energy system with no storage battery.
ELIGIBILITY: Homeowners or private tenants on low incomes, and in receipt of qualifying benefits:
- Child Tax Credits
- Child Benefits – subject to income threshold
- Jobseekers Allowance
- Employment & Support Allowance
- Income Support
- Pension Credit Guarantee Credit
- Universal Credit
- Warm Home Discount Rebate
- Working Tax Credit
- Housing Benefit
- Pension Credit Saving Credit
  
  Priority is given to homes with a low energy rating, and Local Authorities can add their own criteria.
TIMESCALE: Expires 31st March 2026.
APPLICATION: Check your eligibility first, via your Local Authority, then talk to us for further guidance:

Other ways to pay for solar panels

If you own and live in your property, then one of the options above should help you meet the cost. If you don't qualify for free solar via Nest or ECO4, then you can apply for interest-free finance via Green Homes Wales.

Nonetheless, you may need to explore other finance options. So here are some suggestions:

Addition to Mortgage
Your mortgage lender wants you to go solar. The installation will increase your property value, and the savings make it easier for you to meet your repayments, so chances are they'll offer to help you make the switch.

Some even offer incentives. For example, if your mortgage is with Barclays, you can claim £1000 for installing solar panels or a solar battery, with or without adding to your existing mortgage. And if you're with TSB, you can extend your mortgage at a lower rate to cover the cost of solar. It's worth asking your mortgage provider, to see what they can offer.

Installer Finance
Talk to a solar specialist or energy provider, and they'll likely offer a solar package with finance included. Some do this by partnering with a preferred lender, while others work with third party brokers who scan the whole market and secure the best rates.

If you take this route, ask your installer if they receive a commission on your loan or charge a fee for acting as a broker.

We can advise you on finance options when you get in touch.

Personal Loan
If you Google "solar loans UK", you'll see a mix of results:

Finance companies with general loans or solar-specific deals.
Energy firms with package deals - mostly basic systems with low monthly payments.
DIY solar kits with finance included.

It's all pretty diverse - so a straight "apples for apples" comparison is almost impossible.

Our suggestion: if you're looking for a professional job at a sensible price, filter out the DIY kits and oven-ready solar deals – get the custom spec you need, then fund it through a reputable lender. Most will give you a choice of repayment terms, with an easy calculator to give you an instant snapshot.

Or talk to us, and we'll help you secure a competitive rate.

Cash Purchase
If you can pay for your solar panels outright, then so much the better. If you have the money put aside, solar will likely give you a better return than you'd get from any bank or savings fund.

Remember, it adds instant value to your house before you even consider the energy savings.

Cash Deposit
Make your cash go further by combining it with finance. A 30% - 50% down payment could be enough to instantly lower your monthly outgoings - run the numbers and see:

Decide how much you can set aside as a deposit.
Deduct the deposit from your solar quote - how much do you need to borrow?
Shop around for the best finance deal and work out your monthly repayment.
Calculate your new energy spend by taking 70% off your monthly electric bill.
Add the two figures together: Monthly Repayment + Reduced Electric Bill.
If the sum falls below your current electric bill, you'll see instant savings.

Of course, the numbers are different for everyone. So talk to us and we'll work with you to find the right balance of cash plus finance.

Solar Subscription
Some companies offer solar on a rental basis. Instead of you paying upfront, they install the panels at their expense and tie you into a long-term contract. Typically, that means paying them a fixed monthly fee for 20 years, ending with a buyout option. It's a bit like leasing a car and deciding whether to walk away or hand it back at the end.

Deals like this have been popular in the past, but mortgage companies don't like them as things can get complicated when you come to sell the property. Plus, as with all leasing agreements, you'll pay more in the long run. Making it a good deal for some, but an awkward option for others.

We'll help you choose the best option when you get in touch.

Next Steps

Clearly, you've got some thinking to do! But whichever way you're leaning, you'll need some hard numbers first - an installation cost and savings projection to plug into your finance case. So we're offering you a detailed consultation, where we'll survey your property, assess your energy spend and hand you all the answers - we'll call it your Go Solar Plan.

ReadY for solar? Book a free home survey