Somerset has a unique combination of factors that make it one of the best places in England to access solar panel grants. The county has the highest proportion of off-gas-grid homes of any English county, significant rural fuel poverty, and some of the UK's highest solar irradiance. This has attracted targeted grant funding from both national government and local authorities. Here is everything Somerset homeowners need to know about solar grants in 2026.
Warm Homes: Local Grant — Somerset's Primary Scheme
The Warm Homes: Local Grant is the replacement for the ECO4 scheme (which closed March 2026) and is now the primary funded solar scheme for Somerset homeowners. Delivered through Somerset Council and Bath & NES Council, it offers up to £15,000 for eligible households.
Eligibility: Household income below approximately £36,000 per year and property EPC rating of D, E, F, or G. The grant covers solar panels, battery storage, heat pumps, and insulation — often as a combined package. Somerset's high proportion of off-gas-grid properties gives additional priority.
Lendology CIC: Interest-Free Loans for Somerset Homeowners
Lendology CIC is a community interest company specifically operating in Somerset, Bath & North East Somerset, and North Somerset. It provides interest-free (or low-interest) loans for home energy improvements — a unique offering not available in most other counties. For homeowners whose income is above the Warm Homes Grant threshold but who still need financing help, Lendology provides an excellent middle ground. Loans of up to £15,000 are available. D&R Energy refers eligible Somerset homeowners directly to Lendology as part of the installation process.
0% VAT on Solar: Active Until March 2027
All residential solar panel and battery storage installations in Somerset qualify for 0% VAT until at least March 2027. This saving is worth approximately £1,000–£2,600 on a typical 4–6kW solar + battery installation — a government subsidy with no eligibility criteria. Every Somerset homeowner who installs solar before March 2027 benefits.
Boiler Upgrade Scheme: £7,500 for Heat Pump Replacement
For Somerset's large population of off-gas-grid homes heated by oil or LPG, the Boiler Upgrade Scheme provides a £7,500 grant towards an air source heat pump — open to all homeowners regardless of income. When combined with solar panels, a BUS-funded heat pump creates a powerful renewable system: free solar electricity powers the heat pump during the day. For typical Somerset oil-heated homes, the combination eliminates approximately £1,500–£2,500/year in fuel costs.
Smart Export Guarantee: Ongoing Income
Once your solar panels are installed, the Smart Export Guarantee pays you for surplus electricity exported to the grid. At Octopus Agile Export rates (average approximately 15p/kWh), a 4kW Somerset system exporting 900 kWh/year earns approximately £135/year — ongoing income for the life of your system.
D&R Energy serves all of Somerset — Taunton, Bridgwater, Wells, Frome, Glastonbury, Yeovil, Midsomer Norton, and everywhere in between. Call 0800 772 0758 for a free grant eligibility check and solar survey, or visit our full grants guide. For Taunton-specific information, see our Taunton solar panels page.
