Millions of homes to receive grants and cheap loans for solar panels

Homeowners across the country could be handed grants or cheap loans to convert to solar power.

The move would form part of the Government’s commitment to reach clean energy by 2030, with money to be allocated from its Warm Homes Plan in next year’s spending review.

There are also plans to increase the amount homeowners can make from selling energy back to the National Grid, the Times reported.

Households are already facing a doubling of charges for the upkeep for the National Grid as part of a £35bn upgrade to prepare for net zero.

The Government confirmed its Clean Power 2030 Action Plan earlier this month, which will be led by Ed Miliband, the Energy Secretary, and delivered by the end of the decade.

According to the Times, government sources have revealed that this could include up-front grants given to fuel-poor households for solar panels and home batteries.

Wealthier households would be offered low-cost, government-backed loans, potentially repaid through electricity bills at less than the rate of their current charges.

The same sources also revealed that increasing the amount households can earn through selling power back to the National Grid is also being considered.

The current rate is 4.1p per kilowatt hours for many households, significantly below the average purchase price of around 24p.

Gareth Simkins, of trade body Solar Energy UK, said the potential changes would remove a significant barrier to solar investment.

He said: “Cutting the initial purchase cost of solar would do much to improve energy security, boost internal investment and, most critically, cut consumer bills.

“An increasing number of residential solar power installers are offering finance schemes, so this would very much be in accord with that trend. One of the biggest obstacles to growing residential solar power is the purchase initial cost.

“The small-scale solar market is very healthy right now. We’re seeing in the region of 15,000 to 20,000 installations per month and we expect that to grow over 2025. I see no reason why these Government plans wouldn’t see that increase further.”

A Department for Energy Security and Net Zero spokesman declined to confirm or rule out the plans.

They said: “As a first step towards the Warm Homes Plan, the Government has committed an initial £3.4bn over the next three years, with up to 300,000 households set to benefit from home upgrades next year alone.

“The Warm Homes Plan will ensure that new homes are fit for a net zero future, so people can generate their own electricity, cut their bills and at the same time help fight climate change.