Energy · Bills & suppliers · 30 October 2026
Government launches Warm Homes Loan Scheme for clean energy
The Department for Energy Security and Net Zero has announced a new Warm Homes Loan Scheme offering no- and low-interest loans for clean energy installations. Households across the UK can access these loans to spread payments over many years without upfront costs.
The Department for Energy Security and Net Zero has announced the Warm Homes Loan Scheme, which provides no- and low-interest loans for households to install heat pumps, batteries, and solar panels. The scheme allows homeowners to spread repayments over many years, removing the need for significant upfront expenditure. This initiative is available to residents in England, Scotland, Wales, and Northern Ireland.
Interest rates under the scheme are up to 5 per cent lower than regular bank loans. Ten lenders are initially participating, with repayment terms extending up to thirty years. Maximum loan amounts are set at £15,000 for solar panels and batteries, and £20,000 for heat pumps. Homeowners may also combine the loan with a grant of up to £9,000 for heat pumps through the Boiler Upgrade Scheme.
Figures published with the announcement show that 150,000 solar panel installations took place in the first six months of this year. Heat pump sales reached a record high in 2025. Installing a heat pump, battery, and solar panels could save families £550 a year on energy bills, with an additional £300 in annual savings possible with a time-of-use tariff. An example borrowing of £10,000 at an 8% interest rate results in a monthly repayment of £155, saving £285 a year compared to regular loans.
The scheme is currently in its initial phase, with ten lenders offering loans. Further lenders and products are expected to join as the scheme develops. The announcement does not specify a launch date or detailed eligibility criteria beyond residence in the UK.
Written by StreetOwl from Department for Energy Security and Net Zero’s own announcement. It was drafted by StreetOwl’s own model, every figure and quotation was checked by code against the announcement, and it was read and approved by Michael Rossi before it went up. It says what was announced, not what anyone should do about it.
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