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- The Warm Homes Loan Scheme is a government initiative to lend households money for the upfront cost of solar panels, heat pumps, and other clean tech
- Households can get £15,000 for solar panels and £10,000 for an air-source heat pump
- You can combine your loan with the Boiler Upgrade Scheme
The Warm Homes Loan Scheme is a government scheme offers loans to households for clean tech, including £15,000 for solar panels, £10,000 for air-source heat pumps, and £15,000 for storage batteries.
Here’s what it offers in full:
| Clean technology | Maximum available loan for households |
|---|---|
| Solar panels | £15,000 |
| Electrical storage battery | £15,000 |
| Air-water source heat pump | £20,000 |
| Air-air source heat pump | £10,000 |
| Ground-source heat pump | £35,000 |
| Biomass boiler | £20,000 |
| Heat network connection | £7,500 |
| Micro-renewable system | £20,000 |
Will I have to pay interest on these loans?
Yes, you will have to pay interest on whatever loans you take to install clean technology, but these interest rates will be 5% lower than what you would likely pay otherwise.
For example, if you were to borrow £10,000, at 8%, over seven years you would likely repay around £155 a month with a loan available right now from a high street bank outside the Warm Homes Loan Scheme. Through the Warm Homes Loan Scheme, you could save up to £285 a year on repayments.
Who is eligible for the Warm Homes Loan Scheme?
Everyone is eligible as these loans are available to households across the entire UK – in England, Scotland, Wales and Northern Ireland.
Which lenders are offering loans through the Warm Homes Loan Scheme?
There are 10 lenders who are offering loans through the Warm Homes Loan Scheme right now (although this could change as more lenders join).
- Homeserve (partnering with E.On)
- Hometree Finance
- Propensio
- Secure Trust Bank
- Selina Finance
- South Manchester Credit Union
- Sunsave
- Tandem Bank
- The Money Co-op
- This Bank
Can I combine a loan with the Boiler Upgrade Scheme?
Yes, if you get a loan through the Warm Homes Loan Scheme, you can combine with a grant from the Boiler Upgrade Scheme.
The Boiler Upgrade Scheme offers up to £9,000 towards the cost of a heat pump depending on what type of heating system you have. That means almost the upfront entire cost of a heat pump can be paid for by the government and you’d only have to pay back the balance left by the Boiler Upgrade Scheme.
How do I know my clean technology will be installed safely?
The government says that all clean technology will be MCS certified, except for heat network connections. This will give consumers confidence that recognised technical and consumer-protection standards will be met, the government says.
Energy secretary Miatta Fahnbulleh said that energy is an “everyday essential that must be affordable for everyone”.
“These government-supported loans will help families across the UK upgrade their homes with no upfront costs to make them warmer and cheaper to run.”
