The UK Government says Monday 26 October 2026 marks the launch of its Warm Homes Loan Scheme, which aims to make it cheaper to borrow for solar panels, battery storage, heat pumps and other clean home upgrades. The scheme was first promised in January as part of the wider Warm Homes Plan, and its rules were published by the Department for Energy Security and Net Zero earlier in 2026.

How the scheme will work

Under the scheme, participating lenders will offer loans at lower rates than they might otherwise charge, with some households potentially able to borrow at zero per cent. The Government says Treasury backing should allow rates up to five percentage points lower than a lender's usual rate, although the final rate will depend on the lender and the borrower. Loans will run for at least three years.

Published loan caps include up to £15,000 for solar panels and up to £15,000 for battery storage, up to £20,000 for an air-to-water heat pump, up to £10,000 for an air-to-air heat pump and up to £35,000 for a ground source heat pump. Other measures, including biomass boilers and heat network connections, are also covered, and loans may be used alongside the Boiler Upgrade Scheme grant in some cases.

What is still unconfirmed

Crucially, the Government has not yet confirmed which lenders are taking part, what interest rates they will charge, exactly who will be eligible or when applications will open. Households therefore cannot yet apply through a named scheme product, and should be cautious about any firm claiming otherwise. Further details are expected as lenders confirm their products.

Source: GOV.UK