Short answer: Yes, for some households. Derby City Council's Warm Homes: Local Grant can fund up to £30,000 of improvements, including solar panels, for owner-occupied homes with an EPC of D to G and a household income of £36,000 or less, or in certain postcodes. Everyone else pays, with 0% VAT.
The Warm Homes: Local Grant in Derby
Derby City Council has been allocated government funding under the Warm Homes: Local Grant and is delivering it with YES Energy Solutions (Derby City Council). When the scheme launched, the BBC reported that it could pay for up to £30,000 of improvements per home, from solar panels to insulation and more efficient heating, with a total of £1.6m available (BBC).
According to those sources, the scheme is for:
- Privately owned homes, lived in by the owner.
- An Energy Performance Certificate rating of D to G.
- A household income of £36,000 a year or less, or a higher income in certain postcodes or with certain benefits.
The council says it is targeting specific areas of the city identified by the government, so not every eligible-looking household will be offered solar. The funding is limited. If you think you qualify, contact the council or YES Energy Solutions through the council’s page before planning around it.
Derby Homes and council housing
Derby Homes, which manages Derby City Council’s housing, has fitted solar panels to more than 900 homes, funded by over £6 million from the council. Most are bungalows and ground-floor flats, chosen to help elderly and disabled tenants (Derby Homes). If you are a tenant, that programme is run by Derby Homes, and questions or faults go to them.
Not eligible for the grant?
Most homeowners aren't. Call for a free quote with the 0% VAT rate applied.
0% VAT for everyone
Whether or not you qualify for a grant, solar panels and batteries fitted in homes are zero-rated for VAT until 31 March 2027 (HMRC VAT Notice 708/6). That includes a battery added to an existing solar system. On a typical install, that is a real saving compared with the standard rate, and any quote for a home should show 0% VAT.
Group-buying schemes
Some councils run group-buying schemes where households register and an installer is chosen for the whole group. We haven’t found one run by Derby City Council. If you see a scheme advertised as a Derby council offer, check that it appears on the council’s own website before registering.
How to spot a misleading advert
Adverts promising “free solar panels” often link to sites that collect your details and sell them to installers, or that describe a scheme you are unlikely to qualify for. Warning signs include no named scheme, no link to a council or government page, and pressure to agree to a survey before eligibility is checked. The Derby scheme above can be checked on the council’s own website.
What most Derby households pay
Most homeowners won’t qualify for the grant. For them, published prices are the useful guide: Checkatrade lists Derby installations at £7,780 to £12,526, averaging £9,831. How much do solar panels cost in Derby? compares sources and works through the payback.
Bottom line
Derby's main solar grant is the council's Warm Homes: Local Grant, which can pay up to £30,000 for eligible owner-occupiers on lower incomes with an EPC of D to G. Most homeowners won't qualify, but everyone gets 0% VAT on a home install until 31 March 2027. Call 01332 919162, 9am to 7pm, 7 days.