Warm Homes Loan Scheme 2026: Lower-Cost Finance for Solar Panels, Batteries and Heat Pumps

Thinking about solar panels, battery storage or a heat pump but put off by the upfront cost? The government's new Warm Homes Loan Scheme is designed for you. Here's what homeowners and landlords need to know, and how to get ready now.

What is the Warm Homes Loan Scheme?

The Warm Homes Loan Scheme is a government-backed finance scheme and part of the wider Warm Homes Plan. It's built to help households who can afford to borrow but don't have the savings to pay for green home upgrades upfront.

You don't borrow from the government. Approved lenders such as banks, building societies, credit unions and specialist lenders offer the loans. The government is putting £300 million of grant funding behind the scheme. [gov.uk]

How does it make borrowing cheaper?

The government pays approved lenders a grant of up to 20% of each eligible loan. Lenders must pass all of it on to you as a lower interest rate.

• The aim is to cut up to 5 percentage points off the lender's normal rate.

• Support applies to loans of 3 years or longer.

• Rates can't fall below 0%.

• Each lender sets its own rates, so compare offers when products launch.

Who can apply?

The scheme covers any domestic property in the UK and is open to:

• Homeowners who live in the property

• Private landlords upgrading rental homes

There's no income threshold, no minimum EPC rating and no restriction on property type. Lenders will still run their usual credit and affordability checks. If you own more than one property, you can apply for a loan for each one.

What can you finance?

Upgrade Maximum loan

• Solar PV panels£15,000

• Battery storage£15,000

• Air source heat pump (air-to-water)£20,000

• Ground source heat pump£35,000

• Biomass boiler (rural homes only)£20,000

• Domestic wind or micro-hydro£20,000

• Heat network connection£7,500

Good to know:

• An EV charger can be included when it's installed alongside solar panels or a battery. It can't be financed on its own.

• Scaffolding and grid connection for solar can be included, as can radiator and pipework upgrades for heat pumps.

• Roof repairs and insulation aren't covered, although lenders can offer separate finance for those.

• Air-to-air heat pumps aren't eligible yet.

Can I combine it with the Boiler Upgrade Scheme?

Yes. If you're installing a heat pump in England or Wales with a Boiler Upgrade Scheme grant, the loan can cover the remaining cost. In Scotland, it works alongside the Home Energy Scotland scheme.

Why your installer matters

To qualify, both the installer and the product must be MCS certified. Lenders will check this before they approve a loan and again once the work is done.

Your quote must:

• Be dated within the last 6 months

• Be addressed to you and show the full installation address

• Be on company headed paper with the installer's MCS number

• Include an itemised cost breakdown

• Show the system size, for example kW capacity

When can I apply?

The first round of lender applications has now closed. Another round is planned for later in 2026, with those lenders joining in early 2027.

The scheme rules point to consumer products launching from September 2026. However, as of late September, no lenders or loan products had been named publicly. Loans will become available as each approved lender launches its products, and you'll apply directly to the lender.

Our advice: get your survey and quote done now. A compliant quote is valid for 6 months, so you'll be ready to apply as soon as loans open.

How Signix can help

Our renewables team in Norwich supports homeowners and landlords across Norfolk and East Anglia. We'll survey your property, design the right system and give you a clear, itemised quote that meets the scheme requirements.

Ready to get started? Book your free survey today. www.signix.co.uk/solar

FAQs

Is the Warm Homes Loan Scheme a grant? No. It's a loan you repay. The government grant goes to the lender to lower your interest rate.

Do I need a low income to qualify? No. There's no income threshold, but lenders will check that you can afford the loan.

Can landlords apply? Yes. Private landlords can apply for rental properties.

Can I get a loan for an EV charger only? No. An EV charger is only eligible when it's installed with solar panels or a battery.

Where do I apply? Directly with a participating lender once its products launch.