Warm Homes Loan Scheme FAQs

A government-backed scheme offering no- and low-interest loans for clean energy upgrades such as solar panels, batteries and heat pumps, so households can install them without paying upfront and spread the cost over many years.

The loans are available to households across the UK — England, Scotland, Wales and Northern Ireland. The lender carries out its normal affordability, credit and eligibility checks.

The government has worked with lenders to cut interest rates by up to 5% compared with regular loans from banks or high street lenders. Some lenders offer interest-free loans. Your rate depends on the lender and your circumstances.

It depends on the technology: up to £15,000 for solar panels or a battery, £20,000 for an air source heat pump, biomass boiler or micro-renewable system, £35,000 for a ground source heat pump, £10,000 for an air-to-air heat pump (once MCS certification is available) and £7,500 for a heat network connection.

Terms vary by lender, with up to thirty years to repay in some cases.

The government says installing a heat pump, battery and solar panels could help a family save up to £550 a year on energy bills, rising by a further £300 a year with a time-of-use tariff. Savings vary from home to home.

Yes. All installations except heat network connections are carried out by MCS-certified installers. Some lenders only work with particular installers; others let you choose any MCS-certified installer.

Yes, for heat pumps. Homeowners can combine a loan with a grant of up to £9,000 through the Boiler Upgrade Scheme, or Home Energy Scotland in Scotland.

Ten lenders are offering loans at launch, some of them interest free. More lenders and products are expected to join as the scheme develops.

Keep your quote, finance agreement, invoice, proof of purchase and MCS certificate.