Solar funding words, in plain English
Scheme documents, adverts and quotes use a lot of shorthand. Here are the terms you are most likely to meet, each explained in a sentence or two, with a link to the full page where there is one.
The short answer
Yes, most of it is simpler than it sounds. The words that matter most are grant (money you don't repay), loan (money you do), zero rate (the VAT relief to 31 March 2027) and the names of the two means-tested schemes that can include solar: the Local Grant in England and Nest in Wales.
Facts checked at source on 2 and 3 November 2026 · Solar PV Panels Grants is an independent explainer from SEO-DONS LTD, not a scheme
- Area-based scheme
- A scheme that targets homes in particular areas, such as deprived postcodes, rather than only assessing households one by one. The Local Grant and the Social Housing Fund are due to merge into one from 2027/28.
- Battery storage
- A battery that stores electricity, from panels or the grid, for use later. A separate technology for MCS certification from solar PV.
- Boiler Upgrade Scheme
- A grant towards heat pumps and biomass boilers for property owners in England and Wales, applied for by an MCS-certified installer. It doesn’t cover solar. More
- Council delivery partner
- An organisation a council appoints to run assessments or installations for a scheme such as the Local Grant.
- ECO4
- The fourth Energy Company Obligation: a duty on larger energy suppliers to fund energy efficiency work in eligible homes. It ends on 31 December 2026. More
- EPC
- Energy performance certificate. Rates a home from A (most efficient) to G, and is valid for ten years. More
- Export MPAN
- The reference number for the export side of an electricity supply, needed to be paid for exports.
- Export tariff
- The rate a supplier pays per unit of electricity you export.
- Feed-in Tariff
- The scheme that paid households for solar generation and exports. It closed to new applicants in 2019.
- G98 notification
- The notice an installer gives the local network operator about a small generator such as home solar, normally after installation.
- Grant
- Money towards work that you don’t repay. Loans, tax reliefs and export payments are not grants.
- Great British Insulation Scheme
- A supplier-funded insulation scheme that ended on 31 March 2026.
- Health route
- Warm Homes Nest’s route for people with certain health conditions, in homes rated D or lower.
- Home Energy Scotland
- The Scottish Government’s energy advice and funding service. It no longer funds solar PV.
- kWp
- Kilowatt peak: a solar system’s rated output in standard test conditions, used to compare system sizes.
- Means-tested benefit
- A benefit that depends on income and savings. Schemes publish which ones count for them.
- MCS
- The Microgeneration Certification Scheme, which certifies small-scale renewable installations and installers, by technology.
- Nest
- Warm Homes Nest, the Welsh Government’s scheme for low-income households, which can include rooftop solar. More
- Owner-occupier
- Someone who owns and lives in their home. The Warm Homes Loan Scheme is described as for owner-occupied homes.
- Permitted development
- Work that doesn’t need a planning application if it meets set conditions. England widened the rules for solar from 27 August 2026.
- PV-T panel
- A hybrid panel that produces both electricity and heat. The only solar technology Home Energy Scotland now supports, by loan.
- Roof rental
- An arrangement where a company owns panels on your roof under a lease and keeps the income they earn. More
- SEG
- The export payments scheme in Great Britain, under which larger suppliers must offer a rate above zero for exported electricity. More
- Self-use
- Using solar electricity in the home as it is generated, so you don’t buy that unit from the grid.
- Funding for social landlords to improve their homes, separate from the Local Grant.
- Warm Homes Loan Scheme
- A government loan scheme, through participating lenders, for solar, batteries and heat pumps in owner-occupied homes. More
- Warm Homes: Local Grant
- England’s council-run scheme for lower-income homes rated D to G, which can include solar. More
- Warm Homes Plan
- The government’s January 2026 plan for home energy to 2030. More
- Zero rate (VAT)
- A VAT rate of 0%. Installed solar in homes is zero-rated until 31 March 2027, then 5%, under HMRC Notice 708/6. More
Where the definitions come from
The scheme terms follow the wording of the bodies that run them: GOV.UK for Warm Homes: Local Grant, HMRC's Notice 708/6 for VAT, Ofgem for ECO4 and MCS for certification. Each term was checked on 2 or 3 November 2026. The full list is on our sources page.
Not sure which route, if any, fits your home?
Tell us where you live and what you are looking into. Your message reaches SEO-DONS LTD, the publisher of this explainer, and we answer by email. We are not a scheme and cannot approve anything, but we can point you to the right door.
What happens next
- Your message reaches SEO-DONS LTD, which publishes this explainer.
- We reply by email with the scheme or council page that fits, if there is one.
- Any application is between you and that scheme.