Maximum loan by technology
| Technology | Maximum loan |
|---|---|
| Solar panels | £15,000 |
| Electrical storage battery | £15,000 |
| Air-to-water (air source) heat pump | £20,000 |
| Air-to-air heat pump (once MCS certification is available) | £10,000 |
| Ground source heat pump | £35,000 |
| Biomass boiler | £20,000 |
| Heat network connection | £7,500 |
| Micro-renewable system | £20,000 |
These are the maximum amounts the scheme supports. The amount you can actually borrow depends on your quote and the lender’s own checks.
How the lower interest rates work
The government has worked with lenders to cut interest rates by up to 5% compared with regular loans from banks and high street lenders. Some lenders offer loans that are interest free, and some allow up to thirty years to repay.
A worked example
The government’s example: a homeowner borrowing £10,000 at 8% over seven years could expect to repay around £155 a month with a loan available today. Through the Warm Homes Loan Scheme, they could save up to £285 a year on repayments.
Compare the total cost, not just the monthly payment
A longer term usually means lower monthly payments but more paid overall. Before you sign, check:
- the total amount repayable
- how long you will be repaying for
- any monthly fees
Want help with the numbers?
Request a call and we’ll help you look at the upgrade, the quote and applying with an MCS-certified installer.
Loans are provided by participating lenders and are subject to their affordability, credit and eligibility checks.
Bringing the cost down further
If you are installing a heat pump, a grant can reduce the amount you need to borrow. Combining the loan with a heat pump grant.