If you’re a landlord, energy efficiency has likely crept higher up your priority list in recent years. Rising bills, increasing tenant expectations, and the looming pressure of EPC regulations have all made energy upgrades harder to ignore. For many landlords, solar panels are starting to look like a practical way to reduce costs, improve property appeal, and future-proof rental income.
At Solar First, we’re not just installers. Ross, who runs the business, owns several HMOs himself. He’s faced the same questions and decisions you probably have, from rising utility costs and tenant turnover to figuring out how best to improve EPC ratings without spending a fortune. That experience shapes how we advise landlords and helps us focus on practical, no-nonsense solutions that make sense financially and operationally.
So, can landlords install solar? Is it worth it if you don’t pay the bills yourself? And are there any grants or schemes available in 2025? Let’s break it all down.
Can landlords install solar panels on rental properties?
Yes, you can, and in most cases it’s relatively straightforward. The majority of domestic solar installations fall under permitted development, meaning you don’t usually need planning permission. This applies to most houses and HMOs. The main exceptions are listed buildings, properties in conservation areas, and flats with shared or leasehold roofs.
If your property is leasehold, you’ll need permission from the freeholder to carry out any works to the roof. For freehold properties, provided the roof is in decent condition and not heavily shaded, there’s usually nothing to stop you going ahead.
We always recommend a quick suitability check first. We can assess roof condition, orientation, shading, and other key factors before you commit to anything.
Who benefits from solar energy, and how does it work?
That depends on how your rental is structured.
In a typical single-let where the tenant pays the electricity bill, they will benefit from cheaper daytime usage, helping to reduce their monthly costs. While that means the savings go to the tenant, it can still make your property more attractive, potentially reducing voids or allowing you to command a higher rent.
In HMOs or properties with rent-inclusive bills, the benefit swings the other way. As the landlord, you are paying the electricity bill, so you directly reduce your overheads. You can also register for the Smart Export Guarantee (SEG) and earn income from any unused electricity that is exported back to the grid.
There is no single answer that fits every property. Whether you are focused on reducing running costs or improving tenant appeal, solar can support both goals when it is installed as part of a longer-term strategy.
Are there any grants for landlords installing solar panels?
This is where things have started to shift in 2025. While there are still no universal grants available to all landlords, there are several schemes that may help, depending on the property, the tenant, and the location.
Warm Homes Local Grant (WHLG)
This new government scheme is designed to fund energy performance upgrades, including solar panels, for households in England. It covers both privately owned and privately rented properties, as long as they meet certain conditions:
- The property must have an EPC rating of D, E, F or G
- The household must either be on a low income (typically under £36,000), receive certain benefits, or live in a qualifying postcode area
- The local authority must be participating in the scheme
If your property meets the criteria and your tenant qualifies, you may be eligible for funding to install solar panels, along with other improvements. For landlords with multiple properties, the first home may be fully funded, with subsequent ones requiring a 50 percent contribution. This scheme is being delivered through local councils, so availability will depend on where your property is located.
WHLG is one of the most promising developments for landlords in recent years. We recommend checking with your local council to see if they are participating, or contacting us to help assess your eligibility.
ECO4 (Energy Company Obligation)
ECO4 is another government-backed scheme running until March 2026. It places a legal obligation on energy suppliers to fund energy efficiency upgrades in eligible homes. For landlords, this could include insulation, heating upgrades, and in some cases, solar panels.
However, ECO4 is focused on helping low-income or vulnerable households, so eligibility depends on your tenant as well as the property. If the tenant receives qualifying benefits or meets the criteria for fuel poverty, and the property has a low EPC rating, your rental may qualify. As with WHLG, you’ll need to provide written consent for the works to go ahead.
Solar is less commonly funded as a standalone measure under ECO, as the scheme focuses on full-home retrofits that improve overall energy efficiency. However, it can still be part of a broader package of improvements if the property meets the criteria.
Other financial support
Even if your property is not eligible for a grant, there are still ways to improve the return on your investment:
- Smart Export Guarantee (SEG): A long-term income stream for surplus electricity exported to the grid
- Local energy schemes: Some councils offer additional support or funding for renewable energy or retrofit projects
- Tax treatment: Depending on your setup, solar may be classed as a capital improvement and attract tax relief. Always check with your accountant before making any claims
Will solar panels improve my EPC rating?
Yes. Solar PV systems contribute positively to EPC scores by reducing a property’s reliance on grid energy. While they won’t transform a rating on their own, they work well alongside other improvements such as insulation, low-energy lighting, and modern heating systems.
Although the government has paused plans to make EPC C the minimum standard for rental homes by 2028, most landlords are still working towards that target. A higher EPC rating makes it easier to attract tenants, refinance, or sell in the future. Solar can play an important role in reaching that goal.
Is it worth doing if I don’t live there?
It’s a fair question, and the answer is yes. If you pay the energy bills, as you might in an HMO, the savings go straight to you. If the tenant pays, you are adding value to the property, improving its long-term appeal, and increasing its competitiveness in the rental market.
Ross has installed solar on his own HMOs and seen the benefits first-hand. Whether it is lowering running costs, improving EPC ratings, or simply future-proofing the property, solar has proven to be one of the most useful upgrades a landlord can make.
Next steps
If you are considering installing solar panels on a rental property, we can help you explore your options. We will assess your roof, review your EPC, look at your tenancy arrangements, and identify what type of system will work best. We can also help you check eligibility for schemes such as WHLG and ECO4, and guide you through registration for SEG payments.
Call 01572 373342, email us hello@solarfirst.uk, request a quote or learn more about solar for landlords.
