The Warm Homes Loan Scheme, explained: what it means for your home

Most homeowners have no idea that finance for a heat pump, solar panels or a battery already exists. Government research found that only 17% are aware such borrowing options exist at all, against 68% who know solar panels exist as a technology.

And where finance has been available, it's typically been too expensive to make sense. High interest rates have kept these upgrades out of reach for people who'd otherwise go ahead.

The Warm Homes Loan Scheme is the government's attempt to fix both problems: raise awareness that affordable finance is out there, and bring the cost of borrowing down enough to build a genuine, lasting market over time. The aim is straightforward — make it easier for more households to get a heat pump, solar panels or a battery installed now, and pay for it gradually as they go, rather than needing the money upfront.

Here's exactly what's confirmed so far, what isn't yet, and what you can do now.

The short answer

The Warm Homes Loan Scheme is a government-backed loan, not a grant. The government pays a contribution to your lender, and the lender passes it on to you as a lower interest rate — up to five percentage points below its normal rate. It covers heat pumps, solar panels, battery storage and a handful of other upgrades, with borrowing caps set by technology. There's no separate government form to fill in: you apply to a participating lender the same way you would for any personal loan. It isn't open to homeowners yet, and the government expects it to open from around September 2026.

What is the Warm Homes Loan Scheme?

It's a government-backed scheme that makes borrowing for a heat pump, solar panels, battery storage or a few other low-carbon upgrades cheaper. Rather than paying you a grant directly, the government pays a contribution to your bank or lender, and the lender passes that saving on to you as a lower interest rate. It sits within the wider Warm Homes Plan and is backed by £300 million of government grant funding.

How much less could you pay?

Up to five percentage points off the lender's normal rate — though the exact reduction depends on your lender and how long you borrow for, and it may be lower than five points for shorter loans.

What can you use it for?

At launch, the scheme covers:

• Heat pumps — air source, ground source and water source

• Solar panels

• Battery storage, on its own or paired with solar

• Biomass boilers, for rural homes already receiving a Boiler Upgrade Scheme grant

• Connections to a local heat network, where one's available

• Small-scale wind or hydro systems, for the handful of homes suited to them

• An EV chargepoint, but only when it's installed alongside solar or a battery

It doesn't cover insulation or things like a new roof ahead of a solar install; those would need financing separately (source: Scheme Rules).

If you're still deciding whether a heat pump is right for you, our guide to heat pumps vs gas boilers walks through the comparison, and if you're coming off oil, replacing an oil boiler covers what the switch involves.

How much can you borrow?

There are borrowing caps by technology — for example, up to £20,000 for an air source heat pump and £35,000 for ground source.

One thing to bear in mind when you look at those figures: a heat pump installation is a whole-system upgrade, not a like-for-like boiler swap. The cost usually covers the unit, a hot water cylinder and any pipework or radiator changes your home needs.

Who can apply?

Homeowners living in their own property, and private landlords borrowing personally. There's no income threshold — this isn't means-tested. One thing to flag for landlords: this only applies if you're borrowing as an individual. Landlords operating through a limited company aren't currently eligible under the scheme. Your lender will still run its normal credit and affordability checks, the same as for any loan.

How do you apply?

There's no separate government form, no extra application, nothing additional for you to fill in. You apply to a participating lender the same way you'd apply for any personal loan, using a quote from an MCS-certified installer. The lender checks your affordability, verifies the installer's certification, and once the work is done and verified, claims the government's contribution and passes the saving on to you through your rate. All of that happens between the lender and the government — you'll never see it.

One thing worth knowing before you start: how this feels day-to-day depends on which lender you go with. Some will ask you to find your own MCS-certified installer and get a quote before you apply for the loan — two separate conversations to manage. Others build the loan and the installation into a single journey, so the finance and the fitting are handled together from the start. Worth asking which kind of experience you're signing up for.

When can you apply?

Homeowners aren't able to apply yet. The government expects the scheme to open to consumers from around September 2026, though that date could move — the government has been upfront that timings may change. We'll update this page as soon as it's confirmed.

What should you check before you apply?

• Standard credit and affordability checks apply — this isn't guaranteed for everyone

• Your installer must be MCS-certified for the specific technology you're having fitted

• Rates and terms are set by each lender individually, not by government, so it's worth comparing

• Funding is drawn from a shared central pot, so it isn't unlimited

• You generally can't combine it with another government grant for the same measure, with the exception of the Boiler Upgrade Scheme

Why is the government doing this?

Because its own research found that interest rates, more than anything else, decide whether a homeowner goes ahead with an upgrade like this — even one they want and would save money on over time. In government-commissioned research, homeowners were consistently put off as soon as example rates reached around 5%; one participant described the interest as “just a bit of a killer” on top of an already expensive job. Separately, when the same department modelled interest in a hypothetical £10,000 green loan, willingness to take it out fell from 76% of homeowners at a 0% rate to just 8% once the rate reached 5%, and a quarter said no rate would tempt them at all.

That's the thinking behind the scheme: bring rates down now, so enough homeowners borrow to give lenders the volume and track record they need. Over time, the aim is a properly established market for green home finance — one competitive enough that lenders can keep offering good rates without a government top-up.

Is the scheme here to stay?

Not indefinitely, and not guaranteed. It's a multi-year programme, but the grant funding behind it is finite and handed out on a first-come, first-served basis. The government has said it will give lenders six months' notice once funding looks like it's running low, then a final month before new applications close. There's no fixed end date published yet, but it's worth knowing this isn't a permanent fixture — just don't feel rushed into anything before you're ready.

Where Ample fits in

We already help homeowners spread the cost of a heat pump, and we're following the Warm Homes Loan Scheme closely. As more detail is released — including which lenders are taking part — we'll update this page.

In the meantime, you don't have to wait to find out what a heat pump would cost you. An instant estimate takes a couple of minutes, needs no survey, and comes with no obligation.

Frequently asked questions

Is the Warm Homes Loan Scheme a grant?

No. It's a loan from a bank or other lender, with a government contribution built in that lowers the interest rate. You still repay it in full.

Do I need a good credit score?

Your lender will run its usual credit and affordability checks, the same as for any personal loan. There's no separate government-set credit bar.

Can landlords use it?

Yes — but only if you're borrowing as an individual. Landlords operating through a limited company aren't currently eligible under the scheme.

Will every bank offer this loan?

No. Only lenders approved by the government can offer scheme-backed loans.

What if I already have a Boiler Upgrade Scheme grant?

That's fine — the Boiler Upgrade Scheme is the one exception you can combine this with.

Last updated: 11 August 2026. We'll refresh this as the scheme's homeowner details are confirmed.