The Warm Homes Loan Scheme is expected to help UK homeowners and private landlords finance solar panels, battery storage and low-carbon heating at a reduced cost of borrowing.
Scheme status: Not yet open
Public lending is expected from September 2026, subject to final approvals and participating lenders publishing their products.
Author: William Meadows, Eco Providers | Expert contribution: Ian Cartledge, Head of Net Zero | Last reviewed: 6 August 2026
The scheme at a glance
- It is a repayable loan – not a free grant.
- Loans will come from participating FCA-regulated lenders, not directly from the government.
- Government support is intended to reduce the lender’s normal interest rate by up to approximately five percentage points, subject to funding limits.
- A 0% product may be possible, but it is not guaranteed.
- Applicants must pass the lender’s creditworthiness and affordability checks.
- The scheme is intended for owner-occupiers and private landlords borrowing personally.
What is the Warm Homes Loan Scheme?
The Warm Homes Loan Scheme (WHLS) is a government-supported, lender-led programme forming part of the wider Warm Homes Plan. It is aimed at people who can afford repayments but may not have the savings – or access to suitable finance – to pay for eligible home-energy improvements upfront. The government plans to deploy £300 million through participating lenders to reduce the cost of eligible borrowing. This funding is not paid to householders as a cash grant. The lender will design the finance product, assess the application and make the lending decision.
Will the loans be interest-free?
Not necessarily. The published rules target a reduction of up to approximately five percentage points from a lender’s normal nominal interest rate for supported loans lasting between three and ten years, subject to a grant cap. For illustration only, a normal rate of 5% could potentially be reduced to 0%, while a normal rate of 8% might be reduced to around 3%. Actual products, APRs, fees and repayment terms have not yet been announced. Always compare the APR, monthly repayment, total amount repayable, fees and early-repayment conditions rather than relying on a headline rate.
What could the scheme finance?
Each lender may choose to finance only some of the eligible measures. The current scheme position is summarised below.
| Technology | Maximum supported amount | Important conditions |
|---|---|---|
| Solar PV | £15,000 | Roof-mounted systems meeting the applicable scheme and MCS requirements. |
| Battery storage | £15,000 | May be installed with solar or as a standalone battery. |
| Air-to-water heat pump | £20,000 | Before any Boiler Upgrade Scheme grant is deducted. |
| Ground- or water-source heat pump | £35,000 | Includes shared ground-loop systems; grant rules may also apply. |
| Biomass boiler | £20,000 | For qualifying rural properties receiving an applicable grant. |
| Heat-network, domestic wind or micro-hydro | To be confirmed | The relevant caps are expected before launch. |
| Air-to-air heat pump | Proposed cap: £10,000 | Not currently eligible. Eligibility depends on BUS and MCS requirements becoming available. |
An EV chargepoint may be included only as part of an eligible solar and/or battery installation; it cannot be financed as a standalone measure. Insulation, windows, doors and preparatory roofing work are not covered by the WHLS subsidy, although a lender could offer separate conventional finance. Eligible solar, battery and heat-pump installations must use appropriately certified products and an MCS-certified installer. Homeowners considering storage can explore the Tesla Powerwall 3 or request a solar and battery quotation. Other options include the Fox ESS EP5.
Considering a home-energy improvement?
Speak to Eco Providers about whether solar panels, battery storage or a heat pump may suit your property. This is a technical suitability conversation, not a loan application.
Who could apply?
The scheme is principally intended for owner-occupiers and private rented-sector landlords borrowing in their personal capacity. There is no scheme-wide income or benefits test, although lenders can impose their own credit, income, property and EPC requirements. Owners of multiple properties may apply for a separate loan for each property, subject to the lender’s criteria. Business and special-purpose-company borrowing is excluded from the initial rules. Social landlords should instead explore Eco Providers’ social-housing retrofit services.
How would the application work?
No final list of participating lenders or consumer products had been published as of 6 August 2026. Be cautious of any company currently guaranteeing approval, reserving government funding or claiming that every WHLS loan will be interest-free.
Loan or grant: which support is appropriate?
The right route depends primarily on whether the household can repay finance and whether it qualifies for funded support.
Warm Homes Loan Scheme
- Repayment
- The money must be repaid to a participating lender.
- Who it may suit
- Homeowners and eligible private landlords who can afford repayments.
- Checks
- Status, creditworthiness and affordability checks will apply.
- Example
- The proposed Warm Homes Loan Scheme.
Grant support
- Repayment
- Normally does not need to be repaid when all scheme conditions are met.
- Who it may suit
- Qualifying households, often based on income, benefits, property or local eligibility rules.
- Checks
- Scheme-specific household and property eligibility checks apply.
- Examples
- ECO4 and Warm Homes: Local Grant, subject to their rules.
Heat-pump borrowers may be able to combine WHLS finance with the Boiler Upgrade Scheme, subject to final approval and both schemes’ rules. Commercial organisations are outside the consumer scheme and can explore appropriate solutions through Eco Providers Commercial.
What should borrowers check?
- Whether the technology is suitable for the property
- Whether projected savings use realistic assumptions
- The APR, monthly payment and total amount repayable
- Whether the borrowing is secured against the property
- Warranty, maintenance and replacement arrangements
- Early-repayment conditions and what happens if the property is sold
Projected energy savings are not guaranteed. Performance depends on the property, system design, household usage and future energy prices.
A view from Eco Providers
“The Warm Homes Loan Scheme could remove one of the biggest barriers to adopting clean-energy technology: the initial cost. Its real value, however, will depend on more than an attractive headline rate. Consumers need a properly designed system, transparent finance and realistic information about performance. Our role at Eco Providers is to help customers understand the technology first, so the financial decision is based on what is genuinely suitable for their property and long-term energy needs.”
Ian Cartledge
Head of Net Zero
Frequently asked questions
Is the Warm Homes Loan Scheme open now?
Not yet. Public lending is expected from September 2026, subject to final approvals.
Is it a grant?
No. It is repayable finance from a participating lender. Government funding reduces borrowing costs.
Will it definitely be 0%?
No. A product could potentially reach 0%, but the final rate will depend on the lender’s starting rate, funding limits and product terms.
Can landlords apply?
Private landlords borrowing personally are included. Business and SPV borrowing is not included in the initial rules.
Can solar panels and a battery be financed together?
Yes, subject to the chosen lender supporting both measures and its maximum borrowing criteria.
Speak to Eco Providers
The best result starts with selecting the right technology and designing it properly for the property. Eco Providers can assess the technical options for solar PV, battery storage and air source heat pumps.
Discuss your home-energy options
Tell our team about your property, current energy use and the improvements you are considering.
Official sources
Information checked against the published Scheme Rules on 6 August 2026. Scheme details and timings remain subject to change.
Important financial information
This guide provides general information and is not financial advice. Loan availability, APR, rates, fees, security requirements and repayment terms will depend on the lender, final scheme arrangements and individual circumstances. Finance will be subject to status, creditworthiness and affordability checks. Your property may be at risk where borrowing is secured against it. Review the lender’s regulated documentation and consider independent financial advice before borrowing. Eco Providers does not make the lender’s credit or affordability decision.