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Nest Scheme Wales: Solar Panel Funding

Wales runs its own energy support through the Nest scheme (part of the broader Warm Homes Programme), providing free home energy improvements for eligible Welsh households. Solar panels are among the measures available. Here's what you need to know.
What Is the Nest Scheme?
Nest is the Welsh Government's primary scheme for tackling fuel poverty and improving home energy efficiency. It's been running since 2011, evolving through several phases. The scheme provides free home energy improvements to households that are struggling with energy costs.
Nest sits within the broader Warm Homes Programme, which also includes Arbed (a complementary area-based scheme that targets whole streets or estates for upgrade). Together, these programmes have improved tens of thousands of Welsh homes.
What Does Nest Fund?
Eligible improvements include:
- Solar PV panels — typically 3–4kW systems
- Boiler repairs and replacements
- Central heating installation
- Loft, cavity wall, and external wall insulation
- Smart heating controls
- Energy-efficient lighting
Solar is not always the first measure offered. Nest follows a "worst first" approach, prioritising the measures that will make the biggest difference to your energy bills and EPC rating. For homes that already have adequate insulation and heating, solar may be recommended as the next step.
Who Qualifies for Nest?
Benefits-Based Eligibility
You own or privately rent your home in Wales, AND you (or someone in your household) receive one of:
- Means-tested benefits (Universal Credit, Pension Credit, Income Support, income-based JSA/ESA, Housing Benefit, or Working Tax Credit/Child Tax Credit)
Income and Health-Based Eligibility
Even without qualifying benefits, you may be eligible if:
- Your household income is below a certain threshold
- Someone in the household has a chronic respiratory, circulatory, or mental health condition exacerbated by cold living conditions
- You're aged 60+ and at risk of fuel poverty
Property Criteria
- Located in Wales
- EPC rating of D, E, F, or G (though exceptions can apply)
- Must be your primary residence
- Owner-occupied or privately rented (with landlord consent)
Check whether you may qualify for funding with the eligibility checker below.
Grant and scheme eligibility
Check which UK solar grants and schemes you may be eligible for. This is a quick guide — always check the official scheme for full criteria.
ECO4 Scheme (Extended)
The Energy Company Obligation 4 (ECO4) scheme requires large energy suppliers to fund energy efficiency improvements for low-income and vulnerable households. Eligible measures include solar panels, heat pumps, insulation and heating upgrades. Private renters need landlord consent. The scheme was extended by 9 months beyond its original March 2026 end date.
Warm Homes Plan (National Framework)
Up to £15The Warm Homes Plan is the government's flagship energy efficiency programme, published January 2026. It commits £15 billion to upgrade up to 5 million homes by 2030 and aims to lift 1 million families out of fuel poverty. The plan has three pillars: fully funded upgrades for low-income homes (via the Warm Homes: Local Grant), government-backed 0% interest loans for all homeowners (the Consumer Loan Scheme, launching April 2027), and renter protections. Eligible measures include solar panels, batteries, heat pumps, insulation and smart controls.
Boiler Upgrade Scheme (BUS)
Up to £7,500Government grant of £7,500 towards installing an air source heat pump (ASHP) or ground source heat pump (GSHP) as a replacement for a fossil fuel boiler. New for 2025-26: £2,500 grants for air-to-air heat pumps and heat batteries. Applied for by your MCS certified installer, not directly by homeowners. Relevant to solar owners as solar combined with a heat pump creates a highly efficient low-carbon heating and energy system.
Zero-Rate VAT on Solar Installations
Since April 2022, solar panel installations, battery storage systems, heat pumps and other qualifying energy-saving materials installed in residential properties in Great Britain are subject to 0% VAT (down from 5%, and originally reduced from 20%). This is not a grant but a government tax relief that automatically applies to all eligible installations. Northern Ireland has different rules under the Windsor Framework.
Smart Export Guarantee (SEG)
Not a grant but guaranteed income — energy suppliers must pay you for electricity you export to the grid. Requires MCS-certified installation.
Not Sure If You Qualify?
Nest operates a free helpline (0808 808 2244) with advisors who can check your eligibility in minutes. Even if you don't qualify for free improvements, they can provide free energy advice and point you towards other support options. The call is free and there's no obligation.
How to Apply
The application process is straightforward:
- Call the Nest helpline: 0808 808 2244 (free, Monday–Friday)
- Or apply online: nest.gov.wales
- Initial assessment: An advisor checks your eligibility based on benefits, income, and property details
- Home survey: If you pass initial screening, a surveyor visits to assess your home
- Recommendations: You're told which measures are recommended for your property
- Installation: Approved contractors carry out the work at no cost to you
From first contact to installation, expect 2–4 months, though this varies depending on demand and the complexity of the work.
Nest and Solar: Realistic Expectations
While solar is genuinely available through Nest, a few practical points:
Solar isn't guaranteed. The surveyor recommends measures based on your home's needs. If insulation or heating improvements would deliver better value, those may be prioritised instead of (or before) solar.
System sizes tend to be modest. Nest-funded solar is typically 3–4kW — enough to make a meaningful difference to bills, but smaller than what you might choose if paying privately.
Battery storage is not always included. Some Nest-funded installations include battery storage, but this varies by phase and available budget. Ask during your survey whether batteries are covered.
Landlord Properties
If you're renting privately, your landlord must give written consent for any Nest-funded improvements. Some landlords are reluctant because they don't pay the energy bills and see no direct benefit. However, the improvements increase the property's value and EPC rating at no cost to the landlord. Nest advisors can help explain this to reluctant landlords.
Arbed: The Area-Based Scheme

Alongside Nest (which is household-based), the Arbed scheme targets specific geographic areas — often deprived communities — for whole-street or estate-wide upgrades. If your area is selected for Arbed, you may be offered free improvements including solar regardless of your individual benefits status.
You can't apply for Arbed directly; it depends on your area being selected. But if you've been contacted about Arbed, it's genuine — check with your local council if unsure.
Wales vs England: Key Differences
Welsh residents can also access ECO4 as it operates UK-wide. If you qualify for both, contact Nest first — they can advise which route offers the most comprehensive support.

What Solar Saves in Wales
Wales receives slightly less sunshine than southern England but more than Scotland. Typical figures for a Nest-funded 3.5kW system:
- Annual generation: 2,900–3,300kWh
- Annual electricity bill saving: £450–650
- Payback period: immediate (you paid nothing)
- Lifetime saving over 25 years: £11,000–16,000+
Even accounting for Wales's cloudier climate, free solar panels generate meaningful savings from day one.

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22.8
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21.5
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GivEnergy All-in-One 9.5kWh Battery
£5,5009.5
8.6
LFP
6000
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Next Steps
If you're a Welsh homeowner or tenant interested in solar:
- Call Nest on 0808 808 2244 to check eligibility
- If you don't qualify for Nest, check ECO4 eligibility
- If neither applies, consider 0% VAT solar installed privately with finance options
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