Warm Homes Loan Scheme Launches: Low and 0% Interest Loans for Solar, Batteries and Heat Pumps
published 28 October 2026
The government has launched the Warm Homes Loan Scheme, with low-interest loans (some as low as 0%) for solar panels, home batteries and heat pumps.
You can borrow up to £15,000 for solar panels, up to £15,000 for a battery and up to £20,000 for an air source heat pump, with nothing to pay up front.
Ten lenders have signed up so far, and some of them let you choose any MCS-certified installer, including Infinity Energy Services.
Below, we explain how the loans work, what they cost, who can get one and how to use one with us.
What has the government launched?
The Department for Energy Security and Net Zero launched the Warm Homes Loan Scheme on 27 October 2026. It’s part of the government’s Warm Homes Plan, which we covered when it was announced in January. The loans are available for homes in England, Scotland, Wales and Northern Ireland.
The government isn’t lending the money itself. Instead, it pays approved lenders a grant of up to 20% of each loan so they can charge less interest. Under the scheme rules, that should cut the interest rate by up to five percentage points compared with a normal loan, but never below 0%.
Ten lenders have signed up so far, and you can see the full list on GOV.UK. The government expects more lenders and loan products to join.
Energy Secretary Miatta Fahnbulleh said: “Energy is an everyday essential that must be affordable for everyone.”
How much can you borrow?
Each technology has its own maximum loan. These are the limits for the technologies most homes ask us about:
Technology | Maximum loan |
Solar panels (including adding panels to an existing system) | £15,000 |
Home battery (with or without solar panels) | £15,000 |
Air source heat pump (air-to-water) | £20,000 |
Other technologies have their own limits, from £7,500 for a heat network connection to £35,000 for a ground source heat pump. Air-to-air heat pumps, which can also cool your home, have a £10,000 limit, but they can’t be funded until an MCS certification is available for them.
Each lender decides which technologies it will fund, so some loans may cover a single technology and others several.
What will a Warm Homes Loan cost?
That depends on the lender, how much you borrow and how long you borrow it for. The government says rates should be up to five percentage points lower than a normal bank or high street loan, and a few lenders may offer 0% on some loans.
A 0% rate is most likely on shorter loans, and most scheme loans will carry some interest. The grant only applies to loans of three years or more, and because it’s capped at 20% of the loan, it can’t always cut the rate by the full five points on a longer loan.
A shorter loan means bigger monthly payments. Borrowing £10,000 at 0% over three years costs about £278 a month. A longer loan keeps the payments down, but you’ll pay some interest. The government’s own example is a £10,000 loan over seven years: at 8%, it would cost about £155 a month, and the scheme could save you up to £285 a year on the repayments.
So compare the total amount you’ll repay, not just the rate or the monthly payment. And check whether the loan is secured on your home. The scheme allows both secured and unsecured loans.
On the other side of the sums, the government says solar panels, a battery and a heat pump together could save a household up to £550 a year on energy bills, plus up to £300 a year more on a time-of-use tariff. To plan which technologies suit your home and see what they could save, try our Whole Home Planner.
Need help planning which home energy technologies to install?
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Who can get a Warm Homes Loan?
The scheme is open to:
- Homeowners who live in the property.
- Private landlords. If you own more than one property, you can apply for a loan for each one.
There’s no income limit and no minimum EPC rating. You will need to pass the lender’s own credit, affordability and eligibility checks. Tenants, social housing and businesses can’t apply.
What does a Warm Homes Loan cover?
The loans are for low-carbon heating and electricity, not general home improvements. They can pay for:
- Solar panels, including adding panels to an existing system.
- Home batteries, on their own or with solar panels.
- Heat pumps, as long as they don’t replace existing low-carbon heating, such as an older heat pump.
- An EV charger, but only as part of a solar or battery installation, not on its own.
They won’t pay for insulation, windows or doors, or for roof repairs or other structural work needed before solar panels can go on.
Can you use it with the Boiler Upgrade Scheme?
Yes. If you’re getting a heat pump, a Boiler Upgrade Scheme grant can cut the cost and a Warm Homes Loan can spread the rest. The grant is currently £7,500 for an air source heat pump, or £9,000 if you’re replacing oil or LPG heating until 31 March 2027. In Scotland, the loan can be combined with Home Energy Scotland support instead.
The Budget on 28 October didn’t change the grant. The government says it will keep the Boiler Upgrade Scheme’s funding at £400 million in 2027-28, rising broadly in line with inflation after that.
Can you get a Warm Homes Loan with Infinity Energy Services?
Yes. Every installation under the scheme has to be carried out by an MCS-certified installer, and Infinity Energy Services is MCS-certified for solar panels, batteries and heat pumps.
Some lenders only fund work by their own partner installers. Others let you choose any MCS-certified installer, so you can get a quote from us and apply for a Warm Homes Loan with one of those lenders.
Lenders ask for a quote from your installer that includes:
- the installer’s MCS number
- an itemised breakdown of the costs
- the size of the system in kW
- your full address, on company headed paper and dated within the last six months.
Our quotes include all of these, and we’re happy to help you find a lender that will accept them. Once the work is done, we register your installation with MCS and you’ll receive an MCS certificate. Keep it with your quote, finance agreement and invoice, as the scheme asks you to.
Our view at Infinity Energy Services
Cheaper borrowing is good news. For many households, the hardest part of getting solar panels, a battery or a heat pump is finding the money up front, and a low-rate loan spread over several years makes that easier.
But a Warm Homes Loan is still a loan. Before you sign, compare the total you’ll repay over the full term, check whether it’s secured on your home and make sure the payments fit comfortably in your budget. As MoneySavingExpert points out, a deal offered through the scheme isn’t automatically the cheapest way to borrow.
There’s no fixed closing date, but the government’s funding is limited and handed out on a first come, first served basis. If you’re already planning an installation, there’s no reason to wait. Solar panels, batteries and heat pumps are also VAT-free until 31 March 2027.
We’re not financial advisers, so please check the terms with the lender before you borrow. For the full picture, including what a loan really costs and when it’s worth using, read our complete guide to the Warm Homes Loan Scheme.
Next steps
Thinking of using a Warm Homes Loan for solar panels, a battery or a heat pump? We’ll give you a fixed, itemised quote with everything a lender needs.
Infinity Energy Services has been installing solar since 2011. We’re MCS-certified, a Tesla Powerwall Premium Installer for 2026, a SunPower Elite Partner and members of the RECC Assurance Scheme, and every project starts with a free survey and a fixed, no-obligation quote.
Fill in our contact form and we’ll be in touch, or call us on 0800 909 8882.
