What is the Warm Homes Loan Scheme?
The Warm Homes Loan Scheme is a government-supported scheme run by the Department for Energy Security and Net Zero. It aims to make borrowing for home upgrades such as solar panels and batteries cheaper, and it forms part of the government's wider Warm Homes Plan.
It is not a grant paid to households and it is not a government loan. The government pays money to the lenders who take part, and those lenders offer the loans. The scheme is designed to tackle two problems: high upfront costs, and a lack of affordable finance for people who want to install low-carbon technology.
About £300 million of government funding sits behind it.
How the scheme is being rolled out
The Warm Homes Loan Scheme is being introduced in stages. Lenders have been applying to take part since June 2026, and further rounds are due to be onboarded from early 2027, so more options are expected to come on board over time.
Each lender is approved by the government before it can offer a scheme loan, and each sets its own rates and terms within the scheme's rules. That is why the best first step is to find out where you stand.
If you use the check above, we will talk through what you could be eligible for, including the scheme as it rolls out, and the solar and battery finance options available for your home today.
How could it cut your interest rate?
The government gives each approved lender a grant of up to 20% of the loan. The lender has to pass that benefit on by lowering the nominal interest rate on the loan. The aim is a reduction of up to 5 percentage points from the lender's normal rate, for loans lasting three years or longer. The rate cannot fall below 0%.
Two things are worth remembering. The reduction applies to the nominal interest rate, which is not the same as the APR. And the rate you are offered will still depend on the lender, the length of the loan and your own circumstances. The funding is shared between lenders on a first-come, first-served basis, which is a good reason to find out where you stand early.
What can the loan pay for?
For this guide, the relevant measures are solar panels and home batteries:
- Solar panels: loans of up to £15,000, including installation.
- A home battery: loans of up to £15,000, fitted on its own or together with solar panels.
- An EV charger can be included, but only as part of a solar or battery installation.
Related costs such as scaffolding and the grid connection can be included. Replacement roofing or other structural work needed before solar panels can be fitted is not covered, although a lender may be able to offer a separate loan for that.
Who can borrow?
- Owner-occupiers of existing homes.
- Private landlords, for rented properties.
- Homes anywhere in the UK, including mixed-use homes where the main purpose of the installation is the household's energy.
- Anyone able to borrow and repay. The government sets no income threshold, and each lender runs its own credit and affordability checks.
Loans are personal borrowing. Tenants cannot take out a loan for a property they do not own, and lending to businesses or company structures is not allowed. Owners of more than one property can apply for a loan for each.
Installer and product rules
To qualify, the solar panels or battery must be an MCS-certified product, installed by an installer who is MCS-certified for that technology. Lenders have to check this. The installer must also register the finished job with MCS, which produces the certificate the lender uses to confirm the work was done properly.
How it is expected to work
- Choose a lender. Approved lenders will be listed on the government's Home Energy Advice tool, and we can talk you through the options.
- Get a quote from an MCS-certified installer. The quote should be dated within the last six months, addressed to you, itemised, and show the installer's MCS number and the system size.
- Apply for the loan. You can apply to the lender directly, or through an FCA-authorised intermediary. The lender checks your affordability, your credit record, and the property, tenure and measure.
- The installation is completed and registered with MCS.
- The money is released and you repay. The lender decides when to release the funds, for example as a deposit, direct to the installer, or after the work is verified. You repay at the reduced rate.
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What to have ready
- A quote from an MCS-certified installer.
- Proof of ownership of the property and proof of address.
- Photo ID.
- Evidence of your income and outgoings, for the lender's affordability check.
- Your home's EPC rating, as some lenders may ask for it.
Solar and battery finance available today
You do not have to wait for the scheme to get moving. Solar and battery finance is already available through regulated lenders. Finance is subject to status, affordability and lender approval, and the lender makes the final decision.
Energy Services Team Ltd acts as a credit broker, not a lender, and may receive commission from the lender for introducing finance. You can read more about the options on the solar finance page. The check above is not a finance application.
Warm Homes Loan Scheme or Warm Homes: Local Grant?
The two schemes sound alike but do different jobs. The Local Grant gives money for upgrades to lower-income households. The Loan Scheme makes borrowing cheaper for people who can afford to borrow.
| Warm Homes Loan Scheme | Warm Homes: Local Grant | |
|---|---|---|
| What it is | Lower-rate loans from approved lenders | A grant for upgrades, delivered by councils |
| Who it is for | Owner-occupiers and private landlords who can borrow and repay | Lower-income households in privately owned or rented homes in England with an EPC rating of D to G |
| Income rules | None set by the government, but lenders check affordability | Income, benefits or postcode rules apply |
| How you apply | To a participating lender, or through an FCA-authorised intermediary | Through GOV.UK, and your council follows up |
| Do you repay it? | Yes, it is a loan | No, it is a grant |
If your household may qualify for the grant, there is a separate guide to the Warm Homes: Local Grant.
Common questions
When can I get a Warm Homes Loan?
The scheme is being rolled out in stages as lenders are approved. The quickest way to find out what you could be eligible for, and what finance is available for your home today, is to use the check above.
Is it a government loan?
No. The government pays grant funding to approved lenders, and the lenders offer the loans and make the lending decisions.
Could I get a 0% loan?
The scheme is designed to bring a lender's interest rate down by up to 5 percentage points, and as low as 0% where the starting rate allows. What you are offered depends on the lender, the length of the loan and your circumstances.
Can I borrow for solar panels and a battery together?
Yes. Each technology has its own cap, £15,000 for solar panels and £15,000 for a battery, so a combined project can be supported up to the cap for each.
Does my income affect whether I can borrow?
The government sets no income threshold. Each lender still checks your credit record and whether the repayments are affordable for you.
Can I use it for roof repairs?
No. Replacement roofing and structural work are not covered by the scheme. A lender may be able to offer a separate loan for those costs.
Do I have to use an MCS-certified installer?
Yes. The product must be MCS-certified and the installer must be MCS-certified for that technology.
Can landlords use it?
Yes. Private landlords can borrow for rented properties, on a personal lending basis.
Is the check a loan application?
No. The check is a free way to see where you stand and to talk through your options. It does not affect your credit file, and any finance is subject to status, affordability and lender approval.
What happens to my details?
They are passed to Energy Services Team Ltd, an MCS-certified installer and credit broker, who may contact you about the scheme and about solar and battery finance. You can read how your data is handled in the privacy policy.
Sources
This guide was last reviewed on 12 October 2026 against these official sources:
- Warm Homes Loan Scheme: Scheme Rules (September 2026), GOV.UK
- Warm Homes Loan Scheme: apply to participate as a lender (phase 1), GOV.UK
- Warm Homes Loan Scheme, Find a grant, GOV.UK
- Warm Homes Plan, GOV.UK
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