Government-backed loans for solar panels, home batteries and heat pumps went live on 27 October 2026. Ten lenders are taking applications, some at 0% interest.
What’s been announced
The Warm Homes Loan Scheme is the borrowing part of the £15bn Warm Homes Plan. The government has worked with lenders to cut interest rates by up to 5 percentage points compared with standard loans. Some lenders offer terms of up to 30 years.
It is a loan, not a grant. You repay it, and the lender runs its normal credit and affordability checks.
Maximum loan by technology
- Ground source heat pump: up to £35,000
- Air-to-water heat pump: up to £20,000
- Biomass boiler or micro-renewables: up to £20,000
- Solar panels: up to £15,000
- Battery storage: up to £15,000
- Air-to-air heat pump: up to £10,000, once MCS certification is available
- Heat network connection: up to £7,500
Who can apply
You need to own the home, with or without a mortgage. The scheme covers England, Scotland, Wales and Northern Ireland. Work must be done by an MCS-certified installer, except heat network connections.
The 10 launch lenders
HomeServe (with E.ON), Hometree Finance, Propensio, Secure Trust Bank, Selina Finance, South Manchester Credit Union, Sunsave, Tandem Bank, The Money Co-op and thisbank. More are expected to join.
Some lenders only work through their own installer partners, so check that before you get quotes. Compare the total amount repayable, not just the interest rate.
Combining a loan with a grant
You can use a Warm Homes loan alongside the Boiler Upgrade Scheme, or a Home Energy Scotland grant in Scotland. The grant comes off the price first, and the loan can cover some or all of what’s left.
Read more in our Warm Homes Loan guide and the lender list.
Watch out for scams
No genuine lender will cold call you, ask for an upfront fee or tell you that you have already been “approved”. Only participating lenders can use the official scheme branding.