The scheme at a glance
- Interest rates up to 5 percentage points lower than a standard loan, and some loans are interest free
- Nothing upfront, with repayment terms of up to 30 years with some lenders
- Up to £15,000 for solar, £15,000 for a battery and £20,000 for an air source heat pump
- Open to homeowners and private landlords across England, Scotland, Wales and Northern Ireland
- Installation must be by an MCS certified installer
- Works alongside the £7,500 Boiler Upgrade Scheme grant for heat pumps
What is the Warm Homes Loan Scheme?
The Warm Homes Loan Scheme is part of the government's Warm Homes Plan. Rather than lending money itself, the government pays approved lenders to cut the interest rate on loans for clean energy technology. The result is borrowing that costs noticeably less than a typical personal loan, spread over a longer term, so households can install solar panels, battery storage or an air source heat pump without finding the full cost in one go.
The government's own figures put the potential saving at up to £550 a year on energy bills for a home with a heat pump, battery and solar panels, plus up to £300 a year more on a time of use tariff. Your own figures depend on your home and usage, which is what a survey is for. You can get a first estimate from our savings calculator.
How much can you borrow?
Each technology has its own maximum loan amount under the scheme:
| Technology | Maximum loan |
|---|---|
| Solar panels | £15,000 |
| Battery storage | £15,000 |
| Air to water heat pump (air source) | £20,000 |
| Air to air heat pump (once MCS certification is available) | £10,000 |
| Ground source heat pump | £35,000 |
| Biomass boiler | £20,000 |
| Micro-renewable system | £20,000 |
| Heat network connection | £7,500 |
A typical solar and battery system sits comfortably inside these limits: our systems start from around £6,500 for 6 panels with a 10 kWh battery. EV chargers are not covered by the scheme.
Who qualifies?
- Owner-occupiers and private landlords, borrowing on a personal basis
- Homes in England, Scotland, Wales and Northern Ireland
- No income threshold and no minimum EPC rating
- Landlords with several properties can take one loan per property
Lenders still run their own credit, affordability and eligibility checks, and individual lenders can add criteria of their own. Being eligible for the scheme is not a guarantee that a particular lender will approve you.
What interest rate will you pay?
There is no single scheme rate. Each lender sets its own pricing, and the government subsidy brings it down by up to 5 percentage points against an equivalent standard loan. Some lenders offer 0% products. The subsidy applies to loans of three years or more.
When comparing offers, look at the total amount repayable, the length of the term and any monthly or arrangement fees, not just the headline rate. A longer term lowers the monthly payment but usually increases the total you repay.
The first ten lenders
These lenders are in the first tranche of the scheme:
- HomeServe (in partnership with E.ON)
- Hometree Finance
- Propensio
- Secure Trust Bank
- Selina Finance
- South Manchester Credit Union
- Sunsave
- Tandem Bank
- The Money Co-op
- thisbank
More lenders and products are expected to join. Some lenders let you choose any MCS certified installer, while others only work with their own installer partners, so check before you apply.
Why the installer must be MCS certified
Apart from heat network connections, every installation funded through the scheme must be carried out by an MCS certified installer. Lenders check the installer's MCS number on your quote and the MCS certificate once the work is done. Solar Panel Experts is a trading name of Grant Store Ltd, an MCS certified and RECC registered installer, so our installations meet the scheme's installer requirement. Your MCS quote and certificate are part of every job we do.
Using the loan with the Boiler Upgrade Scheme
The loan and the grant stack. In England and Wales, the Boiler Upgrade Scheme takes £7,500 off an air source heat pump (£9,000 for homes heated by oil or LPG), and the Warm Homes Loan can then cover the remaining cost. We claim the grant for you, so it comes off your quoted price before any borrowing. Not sure about the grant? Check your eligibility in 30 seconds. In Scotland, the equivalent support comes through Home Energy Scotland.
How to apply
- Get a quote from an MCS certified installer. We survey your home and give you a written design with honest generation and savings figures.
- Compare loan options. Check the lenders on the scheme, the total repayable, the term and any fees.
- Apply to a participating lender (or through an installer working with one). The lender carries out its own checks.
- Install. Most of our installations take 2-3 days on site, and we manage the job from scaffold to sign-off.
- Keep your paperwork: the quote, finance agreement, invoice, proof of purchase and MCS certificate.
Pairing your new system with a smart or time of use tariff is the easiest way to get the most from it. Our guide to battery storage explains how.
Find out what the Warm Homes Loan could fund at your home
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Book a free surveyWarm Homes Loan FAQs
What is the Warm Homes Loan Scheme?
A UK Government scheme, announced on 27 October 2026, that pays participating lenders to cut the interest rate on loans for solar panels, batteries, heat pumps and other clean energy technology. Rates are up to 5 percentage points lower than a standard personal loan, some loans are interest free, and there is nothing to pay upfront.
Who can get a Warm Homes Loan?
Owner-occupiers and private landlords in England, Scotland, Wales and Northern Ireland. There is no income threshold and no minimum EPC rating, but each lender runs its own credit, affordability and eligibility checks.
How much can I borrow for solar panels and a battery?
Up to £15,000 for solar panels and up to £15,000 for battery storage. An air source heat pump can be financed up to £20,000 and a ground source heat pump up to £35,000.
What interest rate will I pay?
It depends on the lender and your circumstances. The government subsidy reduces rates by up to 5 percentage points compared with an equivalent standard loan, and some lenders offer 0% products. Always compare the total amount repayable, the term and any fees.
How long can I spread the repayments?
Terms vary by lender, up to 30 years with some. The interest rate subsidy only applies to loans of three years or more.
Can I use the Warm Homes Loan with the Boiler Upgrade Scheme?
Yes. In England and Wales the £7,500 Boiler Upgrade Scheme grant (£9,000 for oil and LPG heated homes) comes off the heat pump price first, and the loan can cover the remaining cost. In Scotland the equivalent support comes through Home Energy Scotland.
Do I need an MCS certified installer?
Yes. Every technology except heat network connections must be installed by an MCS certified installer. Lenders check the installer's MCS number on the quote and the MCS certificate after installation. Grant Store Ltd, which trades as Solar Panel Experts, is MCS certified.
Can I choose my own installer?
Some lenders let you use any MCS certified installer; others work only with their own installer partners. Check this with the lender before you apply.
Does the loan cover EV chargers?
No. EV chargers are not on the list of eligible technologies.
Will more lenders join?
Yes. Ten lenders are in the first tranche and the government has said more lenders and products are expected to join, with a second lender window planned.
Source: Warm Homes Loan Scheme factsheet, GOV.UK, published 27 October 2026. This page explains the government scheme. Loans are provided by participating lenders, subject to status and their own terms. Solar Panel Experts is a Grant Store Ltd company (FCA FRN 917379).
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