Warm Homes Loan Scheme: Factsheet  

Households will save money on their energy bills thanks to the new Warm Homes Loan Scheme for technology like heat pumps, batteries and solar panels.  

The no- and low-interest loans will allow people to install clean energy technology without any upfront cost, instead spreading payments over many years. 

We know demand for these technologies is soaring, with almost 150,000 solar panel installations in first six months of this year. Heat pump sales also reached a record high in 2025. 

And our loans will help thousands more households cut their energy bills quickly.  

Energy is an everyday essential that must be affordable for everyone.  

One of the best ways to achieve that is by helping more people with the upfront cost of installing things like solar panels, a battery or a heat pump.  

These upgrades can reduce energy bills and leave households less exposed to price shocks caused by conflict abroad.   

New, government-backed no- and low-interest loans will allow people to install clean energy technology without any upfront cost, instead spreading payments over many years, and cut their energy bills quickly.   

Installing a heat pump, battery and solar panels could help families save up to £550 a year on their energy bills, rising by a further £300 a year with a time-of-use tariff.   

These loans are available to households across the entire UK - in England, Scotland, Wales and Northern Ireland.   

The government has worked with lenders to deliver an up-to-5 per cent reduction in interest rates from regular loans offered by banks or high street lenders.   

For example, a homeowner borrowing £10,000, at 8%, over seven years could expect to repay around £155 a month with a loan available right now. Through the loan scheme, they could save up to £285 a year on repayments.    

Ten lenders are initially offering loans, some interest free, meaning people can shop around for the one that works best, with up to thirty years to repay in some cases.