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.
Is it open yet?
The scheme was designed to open to the public from September 2026, but the Scheme Rules describe that timetable as provisional. The first group of lenders applied to take part between June and July 2026, and a second round is expected to open late in 2026 for onboarding in early 2027.
The Scheme Rules also say that lenders cannot offer these loans, or describe themselves as scheme lenders, until the government has fully approved them. We could not find a published list of approved lenders on GOV.UK at the time of writing in October 2026.
That means the rates, terms and lenders are not yet known. We will keep this guide updated. If you use the check above, we will talk through the finance options available for your home today and what may become available as the scheme rolls out.
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 also shared between all lenders on a first-come, first-served basis, so it can run out.
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, but each lender runs its own credit and affordability checks, so approval is never guaranteed.
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. Once lenders are approved, the government has said it will list them on its upcoming Home Energy Advice tool.
- 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
Is the Warm Homes Loan Scheme open yet?
Public lending was planned from September 2026, but the timetable is provisional, and we could not find a published list of approved lenders in October 2026. Check GOV.UK for the latest position.
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.
Will I get 0% interest?
Not necessarily. The scheme aims to cut the nominal interest rate by up to 5 percentage points, and the rate cannot go below 0%. What you pay depends on the lender's normal rate, 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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