UK Government launches Warm Homes Loan scheme for energy upgrades

The UK government has introduced the Warm Homes Loan scheme to help households finance clean energy technologies such as solar panels, batteries, and heat pumps. The initiative offers no-interest or low-interest loans to reduce the barrier of high upfront costs for renewable installations.

Loan limits vary by technology: solar panels and battery storage are capped at £15,000, while air-to-water heat pumps and biomass boilers can reach £20,000. Ground-source heat pumps allow for borrowing up to £35,000. The government has worked with lenders to provide interest rates up to 5% lower than standard market offerings.

Participating lenders include Tandem Bank, British Gas, and E.On. The scheme is designed to help families reduce energy bills and decrease vulnerability to international price shocks. Additionally, the government and Ofgem have announced a separate Debt Relief Scheme, expected to launch in the spring, to address approximately £2.47 billion in energy debt accumulated by struggling households during the 2022–2024 energy crisis.