REX / Solar
Warm Homes Loans For Solar, Batteries And Heat Pumps
What the government's new loan scheme offers, who can use it, and what to check before you borrow.
8 November 2026.
In October 2026 the government opened the Warm Homes Loan Scheme: government-backed loans to help households pay for home energy upgrades, including solar panels and batteries. It is part of the wider £15 billion Warm Homes Plan announced in January 2026. This guide explains what the loans offer, who can use them and what to check before you apply. The figures below are from GOV.UK as of November 2026.
What The Scheme Offers
This is a loan, not a grant. GOV.UK says the government has worked with lenders to deliver "an up-to-5 per cent reduction in interest rates from regular loans offered by banks or high street lenders", and some lenders are offering interest-free deals, with up to thirty years to repay in some cases.
Because you borrow the cost rather than paying it upfront, GOV.UK says the loans allow households to install "without any upfront cost", spreading payments over many years.
GOV.UK's example: a homeowner borrowing £10,000 at 8% over seven years would repay around £155 a month with a loan available right now. Through the loan scheme, they could save up to £285 a year on repayments.
GOV.UK also estimates that installing a heat pump, battery and solar panels together could help a family save up to £550 a year on energy bills, rising by a further £300 a year with a time-of-use tariff.
What You Can Borrow
The maximum loan supported for the main technologies is:
- Solar panels - up to £15,000
- Home battery - up to £15,000
- Air source heat pump - up to £20,000
- Ground source heat pump - up to £35,000
You can apply for a loan to pay for more than one improvement.
Who Can Apply
GOV.UK says the loans are available to households across the entire UK - England, Scotland, Wales and Northern Ireland. You need to:
- own the property you are applying for, with or without a mortgage
- be applying for a residential property, not a commercial one
- pass the lender's credit and affordability assessments
- use an MCS-certified installer for the work - you cannot do it yourself
How To Apply
You apply to a lender, not to the government. GOV.UK lists three routes:
- Directly to a participating lender.
- Through an installer or retailer, when arranging finance for the work.
- Through your mortgage provider.
GOV.UK's current list of lenders is: HomeServe Finance, Hometree Finance, The Money Co-Op, Propensio, Secure Trust Bank, Selina Finance, South Manchester Credit Union, Sunsave Energy, Tandem Bank and This Bank. It says more lenders and products are expected to join as the scheme develops.
One thing worth knowing: GOV.UK says some lenders will partner with specific installers only, whereas others will allow you to choose from any that are MCS certified. Check which applies before you commit.
As with any loan, look at the total amount repayable - how long you will have to pay it back, as well as the monthly figure. The lender will carry out credit, affordability and eligibility checks.
If You're On A Lower Income
A separate scheme, the Warm Homes: Local Grant, covers free energy saving improvements for lower-income households. It is only available in England; Scotland, Wales and Northern Ireland have their own schemes.
To be eligible, your home must be in England, privately owned (by you or your landlord) and have an EPC rating of D, E, F or G. Household income must usually be £36,000 a year or less, though you may still qualify if you live in a certain postcode area or someone in your household is getting certain benefits. If your council has funding available, it arranges a survey, then organises and pays for the work. Solar panels are on the list of improvements it may suggest.
Where We Come In
One requirement matters here: the scheme only covers work carried out by an MCS-certified installer, and some lenders only work with their own partner installers, so check both before you commit.
We design and install solar PV across London and the South East. If you are planning solar, talk to us. We can survey your roof and quote for the system.
Request a Quote and we will talk you through it.
Sources
All figures and rules above are from GOV.UK, checked 8 November 2026. Scheme terms and the list of lenders can change, so check before applying: