Ministers are finalising a plan to offer grants and low-interest loans to millions of households keen to fit solar panels and batteries, as part of the government’s drive to meet its 2030 clean energy ambitions.
The scheme, which forms part of the £6.6 billion warm homes plan and will be allocated in next year’s spending review, is expected to target both fuel-poor and wealthier families.
Under proposals still in development, low-income households would receive upfront grants for installing solar technology, while households on higher incomes could access cheap loans underwritten by the government. Repayments might be added to energy bills at a more affordable rate, potentially lowering annual electricity costs. Ministers are also weighing whether to boost the current rate homeowners earn by selling surplus power back to the grid, which stands at just 4.1p per kilowatt-hour (kWh)—far lower than the average electricity price of around 24p/kWh.
Officials believe that helping more people switch to homegrown solar energy could be critical for broader decarbonisation efforts. The government’s target includes installing 600,000 heat pumps annually by 2028, but many consumers find them costly both to install and operate. Rooftop solar and battery storage could transform this balance, offsetting electricity charges and shortening the payback period—currently averaging between five and nine years.
The energy department’s clean energy plan, released earlier this month, aims to boost installed solar power capacity from 16.6GW to up to 47GW by 2030, with around a third expected to come from residential schemes and the remainder from large-scale solar projects. Ministers say ramping up rooftop installations could ease pressure on using agricultural land for solar farms.
Despite cross-party support for the concept, the scheme’s details still require Treasury approval. Whitehall officials point to past initiatives that proved complex and had lower-than-expected uptake. Budget constraints have also played a role: Rachel Reeves, the Chancellor, has already scaled back annual net-zero spending plans from £28 billion to £15 billion.
Industry voices have welcomed the proposal. Chris Hewett, chief executive of the Solar Trade Association, said solar would have a “critical role” in achieving the government’s clean power targets, while Jess Ralston, head of energy at the Energy and Climate Intelligence Unit, stressed that more rooftop arrays would reduce controversy over land use.
A government spokesperson confirmed more details would follow once the spending review concluded, and emphasised the central role of consumer-focused incentives in the push to halve food waste by 2030 and scale up low-carbon heating. Meanwhile, the newly formed circular economy taskforce is expected to outline further waste and efficiency measures next year.
