The Warm Homes Loan Scheme is intended to support finance for home improvements that reduce energy use, lower carbon emissions and improve the energy efficiency of homes.

Although consumer loan products are not yet available, the government has indicated that the scheme is expected to support improvements such as heat pumps, solar photovoltaic (PV) panels and battery storage through participating lenders.

The exact improvements available will depend on the products offered by approved lenders and the final scheme rules.

Low-Carbon Heating Systems

One of the main aims of the scheme is to encourage the installation of low-carbon heating technologies that can replace fossil fuel heating systems.

Air Source Heat Pumps

Air source heat pumps use heat from the outside air to provide heating and hot water for your home.

They are one of the most common low-carbon heating systems and are already supported through the Boiler Upgrade Scheme.

Ground Source Heat Pumps

Ground source heat pumps collect heat from underground pipework and can provide efficient heating throughout the year.

Solar Photovoltaic (PV) Panels

Solar PV panels generate electricity from sunlight, helping reduce electricity bills and dependence on the National Grid.

Future Warm Homes Loan products may allow homeowners to spread the installation cost over an agreed repayment period.

Battery Storage Systems

Battery storage systems allow households to store electricity generated by solar panels for later use.

This can increase the value of renewable energy systems by reducing the amount of electricity imported from the grid.

Other Energy Efficiency Improvements

As the scheme develops, additional improvements may be supported through participating lenders.

These could include eligible technologies and measures approved under future scheme guidance.

Consumers should always check the lender’s product information before assuming a particular improvement qualifies.

Will Every Improvement Be Covered?

No.

Each participating lender is likely to publish its own loan products, eligibility requirements and the improvements that can be financed.

Not every improvement will necessarily qualify under every loan product.

Warm Homes Loans vs Grants

Warm Homes Loan Scheme
Boiler Upgrade Scheme

Finance through participating lenders
Government grant

Repayable loan
Non-repayable grant

May support a range of improvements
Mainly supports eligible low-carbon heating systems

Read our full comparison: Warm Homes Loan Scheme vs Boiler Upgrade Scheme.

When Will Consumers Know What Is Covered?

The full list of eligible improvements will become clearer once participating lenders launch consumer loan products.

Until then, homeowners should rely on official government announcements and lender guidance.

For the latest information, read When Will Warm Homes Loans Be Available?.