UK Warm Home Loans Offer Interest-Free and Low-Interest Loans for Home Energy Upgrades
The UK's Warm Home Loans scheme, launched in October 2026, offers interest-free or low-interest loans to fund home upgrades including heat pumps, batteries and solar panels. The loans are backed by the government, and the scheme is designed so that households can install clean energy equipment without paying the full cost up front.
Under the scheme, loans range from £7,500 to £35,000. The amount depends on the technology. Loans of up to £10,000 are available for air-source heat pumps, and up to £35,000 for ground-source heat pumps, according to The Guardian.
The loans are offered through a group of lenders. British Gas has partnered with Tandem Bank, and E.On has partnered with Homeserve, to offer Warm Home Loans directly to their customers. Other lenders in the scheme are HTG Finance, Propensio, Secure Trust Bank, Selina Finance, South Manchester Credit Union, Sunsave, The Money Co-op and This Bank.
The government says that installing a heat pump, a battery and solar panels could save a household up to £550 a year. It adds that the saving could rise by a further £300 a year with a time-of-use tariff, which is an electricity contract that charges different rates at different times of day.
Equipment must meet certain standards to qualify. Under the scheme rules, microgeneration installations, including solar panels, battery storage systems and heat pumps, require MCS certification, the industry standard for small-scale renewable energy equipment, to be eligible.
