Warm Homes Loan scheme: a way to spread the cost of making your home more energy efficient

The government’s Warm Homes Loan Scheme is designed to help households spread the cost of green technology such as solar panels, home batteries and heat pumps. Government-backed no- and low-interest loans are available through participating lenders, so households do not have to meet the full cost upfront or incur higher interest rates costs over the duration of their agreement.

The scheme is available across the UK, including England, Scotland, and Wales. Different lenders will offer different products and terms, and normal affordability, credit and eligibility checks apply.

What is the Warm Homes Loan Scheme?

The Warm Homes Loan Scheme offers government-backed finance for specified clean energy technologies. The government has worked with participating lenders to provide interest-rate reductions of up to 5% compared with regular loans offered by banks or high-street lenders.

Because products vary by lender, it is important to compare the interest rate, repayment term, fees and the total amount repayable, rather than looking only at the monthly payment.

What can a Warm Homes Loan help pay for?

The government has published maximum supported loan amounts for the technologies currently included in the scheme:

The government says this is the first part of the scheme’s offer, with further lenders and products expected to join as the scheme develops. You can find the latest updates about the Warm Homes Loan Scheme on the government website.

EV chargers are also eligible under the scheme if installed with one of the technologies noted above.

Who can apply?

The loans are available to households across the UK. Applications are made through participating lenders or installers, and the lender will carry out its normal affordability, credit and eligibility checks.

Can you combine a loan with a grant?

Potentially. The government says homeowners may be able to combine a Warm Homes Loan with a grant of up to £9,000 through the Boiler Upgrade Scheme, or with Home Energy Scotland support in Scotland. Eligibility requirements apply, so check the relevant scheme before making a decision.

How could these technologies help with energy bills?

According to the government, installing a heat pump, battery and solar panels could help a household save up to £550 a year on energy bills, with potential savings of a further £300 a year when combined with a time-of-use tariff. Actual savings will depend on the home, technology installed and how energy is used.

What should you check before taking out a loan?

Before choosing finance, compare both the installation and the borrowing. The government recommends considering which upgrades are suitable for your home, checking whether grants may also be available, comparing installation quotes and choosing a loan that works for you.

In particular, check:

The government says installations must be completed by MCS-certified installers, except for heat network connections. The good news is all of our installations are completed by MCS-certified installers.

Making the most of a home energy upgrade

If you install solar panels, a battery or a heat pump, it is also worth looking at how and when you use energy. A smart energy tariff may help some households get more value from their technology, depending on their circumstances and energy-use pattern.

For example, our Heat Pump Saver tariff¹gives customers a lower electricity rate of 14p per kWh between 11am and 4pm². Our off-peak hours are designed to optimise higher temperatures in the afternoon so customers can maximise their heat pump’s efficiency and enjoy a cosy home and hot water at the end of the day – and customers could save even more by shifting some of their energy use to this window.

Our Solar Saver tariff³offers a lower electricity rate of 20p per kWh between 7pm and 9am²to help customers with solar panels continue to save on their electricity after the sun sets.

Frequently asked questions about the Warm Homes Loan Scheme

Is the Warm Homes Loan Scheme available in Scotland? Yes. The government says the scheme is available across the whole UK, including Scotland. Homeowners in Scotland may also be able to use Home Energy Scotland support alongside a loan, subject to eligibility.

Are Warm Homes Loans interest free? Some participating products are interest free, while others are low-interest loans. Rates and terms vary by lender, so compare the total amount repayable before applying.

Can I use a Warm Homes Loan for solar panels? Yes. The maximum supported loan amount for solar panels is £15,000.

Can I use a Warm Homes Loan for a heat pump? Yes. The maximum supported amount depends on the type of heat pump. The government lists up to £20,000 for an air-to-water source heat pump, up to £10,000 for an air-to-air source heat pump when MCS certification is available, and up to £35,000 for a ground source heat pump.

Can I get a grant as well as a Warm Homes Loan? The government says homeowners may be able to combine a loan with a grant of up to £9,000 through the Boiler Upgrade Scheme, or with Home Energy Scotland support in Scotland, subject to eligibility.