0% VAT on Solar Installations!

Benefit from zero-rated VAT until March 31, 2027. Save thousands on your home energy upgrade today.

Financing

Solar finance in the UK 2026 — Nationwide 0%, installer 0%, and the personal-loan back-up

Nationwide Green Additional Borrowing is 0% fixed for 5 years on solar, capped at £20,000 for existing mortgage holders. E.ON Next runs 0% APR over 3 years on its own quotes. For everyone else, Tesco Clubcard at 6.0% APR over 10 years lands the lowest monthly payment.

The UK retail-finance market for solar in 2026 has three distinct strong cards plus a long tail of competent personal loans. The dominant story this year is that 0% APR is available to most homeowners — either via Nationwide's mortgage top-up or via an installer's own captive finance — provided the customer matches a small set of eligibility rules. Verified May 2026.

The published market

LenderProductTermAPRAmountGate
NationwideGreen Additional Borrowing2 or 5 yrs fixed0% APR£5,000 – £20,000Existing Nationwide mortgage, ≤90% LTV
E.ON NextSolar financeup to 3 yrs0% APRQuote valueE.ON Next solar customer, ≥£12k income, DD
Octopus Energy + DivideBuy/ZopaSolar BNPL2–3 yrs / 5–10 yrs4.9% APR (short) / 9.9% APR (long)Octopus quote valueOctopus solar customer, £500 deposit
Tesco BankClubcard Home Improvement Loan1–10 yrs6.0% (Clubcard) / 6.4% rep APR£3,000 – £35,000UK resident, credit check
M&S BankPersonal Loan1–7 yrs5.7% rep APR£1,000 – £30,000UK resident, ≥£10k income

Worked example — £12,000, 6 kWp + 10 kWh battery

All figures are net of the 0% VAT regime on energy-saving materials, which runs to 31 March 2027 and then reverts to 5% (gov.uk):

  • Nationwide Green Additional Borrowing, 5 yrs at 0% — ~£200/month. Zero finance cost over 60 months. Mortgage-holder gated.
  • E.ON Next 0% finance, 3 yrs — ~£333/month. No mortgage gate; works for renters' landlords or unmortgaged homeowners.
  • Tesco Clubcard 10-yr at 6.0% APR — ~£133/month. Lowest absolute monthly payment in the market for anyone outside the Nationwide / E.ON gates. Total interest ~£3,990 over the life of the loan.
  • M&S Bank 7-yr at 5.7% APR — ~£174/month.
  • Octopus 9.9% APR over 10 yrs — ~£158/month, total interest meaningfully higher.

Stacking the cashbacks

Most major UK lenders pay a one-off cashback rather than a discounted rate. They stack with any of the above finance products:

  • Halifax Green Living Reward — £1,000 cashback on solar/battery with a Halifax mortgage application after 31 July 2024.
  • Lloyds Eco Home Reward — £1,000 (£2,000 for heat pump) with a residential mortgage illustration after the same date.
  • Barclays Greener Home Reward — £500 or £1,000 depending on measure.

Smart Export Guarantee — the export side of the equation

Every supplier with 150,000+ domestic customers must publish an export tariff. Mid-2025 the best fixed rates sit around 15 p/kWh (British Gas, Good Energy, E.ON Next, EDF); Octopus Intelligent Flux averages around 27 p/kWh with a battery and time-of-use charging. On a 6 kWp + 10 kWh install, expect roughly £500–700/year of export revenue at the fixed rates and £950–1,200/year on Intelligent Flux — direct offset to the monthly loan payment.

The bottom line

If the customer is a Nationwide mortgage holder, Nationwide Green Additional Borrowing wins outright on total cost. For everyone else, E.ON Next's 0% over 3 years is the most genuinely free finance, and Tesco Clubcard's 10-year term drives the monthly payment to its lowest possible figure for a £12,000 install. All three benefit from the 0% VAT regime running to March 2027 and from the SEG export revenue.