The UK Government has launched the Warm Homes Loan Scheme. It offers cheaper loans for green energy at home: solar panels, batteries and heat pumps. The Department for Energy Security and Net Zero (DESNZ) published the details on 27 October 2026.
The loans are available across the whole United Kingdom: in England, Scotland, Wales and Northern Ireland. Interest rates are to be up to 5 percentage points lower than on a regular loan. Some offers are to be interest-free. In some cases, repayment can run for up to 30 years.
The maximum amounts depend on the technology:
- solar panels – up to £15,000,
- home energy storage (battery) – up to £15,000,
- air-to-water heat pump – up to £20,000,
- air-to-air heat pump – up to £10,000,
- ground source heat pump – up to £35,000,
- biomass boiler and micro-renewable systems – up to £20,000,
- heat network connection – up to £7,500.
Ten lenders are offering the loans at launch, and more are due to join. Each one checks affordability and credit in the same way as for a regular loan. The equipment must be installed by an MCS-certified installer (except heat network connections). The Government gives an example: on a £10,000 loan over 7 years at a typical 8% rate, the repayment is about £155 a month, and a lower rate could save up to £285 a year on repayments.
HM Treasury said on 26 October that solar panels, a battery and a heat pump together could cut energy bills by up to £550 a year. The loans can be combined with grants for lower-income households.
What it means for you
If you own a house or a flat, you can spread the cost of installation into instalments more cheaply than with a regular loan. This matters before winter, because gas prices in Europe are at their highest since 2022. Tenants need their landlord’s consent. A small business run from home will also benefit from a lower bill. Note: a heat pump will not bring big savings in every home – insulation and how you heat the house matter.
Our assessment
This is a good direction, but the devil is in the detail. There is no full list yet of the rates, fees and terms at each lender. We advise comparing the total cost of the loan, not just the monthly repayment. Do not sign a contract with a door-to-door salesperson who promises a “government loan on the spot”.
What to do
- Read the official information: Warm Homes Loan Scheme – GOV.UK.
- Get 2–3 quotes from MCS-certified installers.
- Compare the total amount repayable, the term and the monthly fees.
- Keep the quote, the agreement, the invoice and the MCS certificate.
Source: GOV.UK, Department for Energy Security and Net Zero (27 October 2026); HM Treasury (26 October 2026).
We assess factual corrections and substantive responses. Verified changes are reflected in our reporting.
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