Households who can pay
There is no grant in England for solar panels for households that can afford them. Under the Warm Homes Plan of January 2026, that group is offered low-cost loans, and grant money goes to lower-income households through councils (Warm Homes Plan). In Liverpool, the city council runs that grant.
The council's Warm Homes: Local Grant
The government has awarded Liverpool City Council £5.8m to improve about 450 Liverpool homes over three years through the Warm Homes: Local Grant (Liverpool City Council). Eligible households pay nothing towards the work.
| The home | Inside the Liverpool boundary, with an EPC of D, E, F or G; lived in by its owner or a private tenant. |
|---|---|
| Pathway 1: postcode | The home is in one of the two most deprived tenths of England on the Indices of Multiple Deprivation; the council publishes the list of postcodes. |
| Pathway 2: benefits | Someone receives a qualifying means-tested benefit such as Universal Credit, Pension Credit or Housing Benefit, or meets the ECO4 Flex Route 2 criteria. |
| Pathway 3: income | Gross household income under £36,000, or below an after-housing-costs threshold that depends on household size. |
| Measures | Solar PV and PV batteries, hybrid and ground source heat pumps, and insulation, subject to a full survey and funds. |
The EPC test leaves out much of the city, because 60.2% of Liverpool homes with a certificate are already band C or better; among homes built before 1930 the figure is 39.3% (ONS). The need is real: 11.9% of Liverpool households, about 25,820, were in fuel poverty in 2024 (DESNZ).
Year two is full
The council says the scheme is oversubscribed for year two, which runs 1 April 2026 to 31 March 2027. Applications go only through the government's portal, not by email or phone, and registering now counts towards year three, starting 1 April 2027 (Liverpool City Council). After registering, an engagement officer may get in touch and ask for proof of identity, income or ownership. A survey decides the measures; if the work fits the budget it can go ahead, otherwise the household joins a waiting list.
Who the grant can reach
The council's grant is aimed at a large need with a fixed pot. In 2024, 11.9% of Liverpool households, about 25,820, were in fuel poverty, against 9.9% across England (DESNZ), while the council's £5.8m from the government is to improve about 450 of the city's homes over three years (Liverpool City Council). Eligibility is homes at EPC D to G where the household qualifies on income below £36,000, a means-tested benefit or a qualifying postcode, so many households that qualify on paper will still wait. That is a reason to register early if you qualify, and a reason to be wary of anyone promising a grant at the door.
Tenure shapes who can apply. 26.1% of households rent privately and 21.9% from a housing association (Census 2021); the grant includes private renters whose home and household qualify, while housing association tenants should ask their landlord. For the costs to set against any of this, see the costs page and batteries.
Solar Together group buying
The Liverpool City Region Combined Authority has run several rounds of Solar Together, a group-buying scheme (LCRCA). Households register, installers bid in an auction, and each household receives a price for its own home that it can accept or decline. It is not a grant, and the price still deserves the same checks as any other quote. Rounds open and close, so look for the current one rather than relying on old dates.
VAT, export rates and loans
Every household benefits from zero-rated VAT on installed solar panels and batteries until 31 March 2027; from 1 April 2027 the rate becomes 5% (HMRC Notice 708/6). On a 3 kW system at the North West average, about £6,050, that would add around £300, by our arithmetic.
Larger suppliers must offer a rate above zero for electricity your panels export, each setting its own under Ofgem's rules (Ofgem); you need an MCS-certified system and a meter that records exports. See export payments. The national Warm Homes Loan Scheme offers reduced-interest borrowing for energy improvements, solar included (GOV.UK); it is borrowing to repay, and this guide does not arrange it.
Approaches to doubt
- Someone who rings or knocks offering the council's grant. Liverpool's scheme is applied for through the government portal; check with the council before sharing details.
- A grant for everyone. The real scheme tests the home's EPC and the household.
- Finance described as funding. A loan is repaid, whatever the rate.
- Invented deadlines. The VAT change on 1 April 2027 is real but not imminent; compare quotes. See finding an installer.
For prices before any help, see what solar costs in Liverpool.