Warm Homes Plan: what it means for solar panels in 2026

The Warm Homes Plan is the UK government's £15 billion programme to upgrade up to 5 million homes by 2030. For solar panels it does two things. In England it pays for panels in some lower-income homes through council-run grants. For everyone else it is launching reduced-rate loans through approved private lenders, with a first consumer phase planned from September 2026. On 24 September 2026 no lender had been named, and the loans are not guaranteed to be 0%.

The Warm Homes Plan at a glance

The plan was published in January 2026 and covers spending up to 2029/30. The parts that matter for solar and batteries:

Scotland, Wales and Northern Ireland run their own grant schemes; the loans apply there too. For grants by nation, see our solar panel grants guide.

How the Warm Homes loans work

The Warm Homes Loan Scheme is how most households will use the plan for solar. It is a loan from a private lender, not a grant and not a government loan. The government pays the lender a grant of up to 20% of the loan, and the lender must pass that on as a lower interest rate. You repay the full amount you borrow.

What the scheme rules set:

• Who can borrow: owner-occupiers and private landlords, borrowing personally. Companies cannot. The scheme sets no income test, no minimum energy rating and no property-type limit, but each lender runs its own credit and affordability checks and can add conditions, such as asking for an EPC.
• What it pays for: new roof-mounted solar panels, including adding panels to an existing system, up to £15,000. A battery, with or without panels, up to £15,000. An EV charger only as part of a solar or battery installation. Scaffolding and grid connection can be part of a solar quote.
• What it does not pay for: roof replacement or structural work before the panels go on, or anything already funded by another public grant or loan. The exceptions are the Boiler Upgrade Scheme and the Home Energy Scotland heat pump grant, which can be combined with a loan for a heat pump.
• Installer: both the product and the installer must be certified by MCS, the Microgeneration Certification Scheme, and the installer must register the finished job on the MCS database. That registration creates your MCS certificate, which the lender uses to check the installation.
• Term: only loans of three years or more qualify.
• Types of loan: unsecured personal loans, finance arranged through an installer or supplier, and secured borrowing such as a further advance on your mortgage. Leasing, subscription and property-linked finance are excluded from the first phase.

Will the loans be 0%?

Not necessarily. The government grant is designed to cut a lender's normal rate by up to 5 percentage points, and never below zero. That has two consequences:

• Through the grant alone, a loan reaches 0% only if the lender's normal rate is 5% or lower. A lender, installer or retailer can add its own discount on top, so some products may still reach 0%.
• On longer loans the cut can be smaller. The grant is capped at 20% of the loan, and the rules say the cap is more likely to bite on longer terms.

Illustration from the scheme rules (not an offer): the rules' own table shows that a five-year loan with a normal rate of 8% qualifies for a grant worth 11.4% of the loan. That grant is meant to bring the rate down by 5 points: 8% − 5 points = 3%. Real rates will depend on each lender's pricing and your credit checks.

Interest is part of what solar costs you. Compare the total amount repayable, not only the monthly payment, and see whether solar panels are worth it at your cost of borrowing.

Status and how to apply

Where it stands on 24 September 2026: the scheme rules describe an initial consumer launch phase from September 2026. Lender applications for the first round closed in July, and the government expects to open a second lender window later in 2026 for lenders joining in early 2027. The government's scheme page, last updated on 17 September 2026, names no approved lender. We do not name, link or recommend lenders.

You will apply to a participating lender, not to the government. The rules say the government will list participating lenders on a Warm Homes Loan Scheme page within its planned Home Energy Advice service. Until then:

• Get your quote ready. For a standard loan, lenders will ask for a quote from an MCS-certified installer that is dated within the last six months, addressed to you, on company letterhead, and shows the installer's MCS number, the full installation address, an itemised cost breakdown and the system size in kW.
• Check that the installer is MCS-certified for solar panels, and for batteries if you are adding one.
• Check any lender on the FCA Register before you sign a credit agreement.

Grants for lower-income homes

In England, the plan pays for upgrades in lower-income homes through two schemes:

• Warm Homes: Local Grant. Your home must be in England, privately owned (by you or your landlord) and rated EPC D, E, F or G. Household income must usually be £36,000 a year or less, although some postcode areas and benefits also qualify. You apply on gov.uk; if your council has funding, it arranges a survey and may offer insulation, an air source heat pump, smart controls or solar panels. The council pays for the agreed work, so you pay nothing, though a landlord may need to contribute.
• Warm Homes: Social Housing Fund. The money goes to social landlords to upgrade their tenants' homes. In April 2026 the government announced, subject to final approvals, an extra £100 million for the fund to help deliver up to 57,000 solar installations in 2026/27.

From 2027/28, the government intends to merge the two into a single low-income scheme delivered area by area. The older supplier-funded scheme, ECO4, ends on 31 December 2026 and will not be replaced by another supplier scheme.

Scotland, Wales and Northern Ireland

The loan scheme covers any home in the UK; grants are run by each nation.

• Scotland: Warmer Homes Scotland can fit "a home renewables system" for eligible households. The Home Energy Scotland Grant and Loan does not fund standard solar panels or batteries.
• Wales: Nest can include solar panels for eligible low-income households, and Green Homes Wales offers owner-occupiers interest-free loans of £1,000 to £25,000, subject to credit checks.
• Northern Ireland: we found no government grant for homeowners' solar panels (checked 24 September 2026); the planned Warm Healthy Homes Fund proposes to include them.

Our grants guide has eligibility and contacts for each nation.

Landlords and tenants

• Private landlords can borrow through the Warm Homes Loan Scheme in their own name, one loan per property if they own several. Lending to companies and special-purpose vehicles is not allowed.
• Private tenants in England can apply for the Local Grant themselves; the landlord may need to pay for some of the work.
• New standards: the plan confirms that privately rented homes in England and Wales will need to reach EPC band C by October 2030, unless exempt, with landlords' spending capped at £10,000 per property. Improvements made from October 2025 count towards that cap. Scotland and Northern Ireland set their own rules.

If something goes wrong

The scheme rules split responsibility:

• The lender handles complaints about the loan, the credit decision and repayments, under FCA rules, with escalation to an ombudsman.
• The installer handles problems with the installation. Contact the installer first and, if that fails, MCS. If the installer belongs to RECC or HIES, you can also use that code's dispute process.
• If the loan is arranged through the installer or supplier (point-of-sale finance) and the installation costs between £100 and £30,000, section 75 of the Consumer Credit Act can make the lender jointly liable for problems with the installation or mis-selling. A personal loan you arrange yourself, or extra borrowing on your mortgage, usually doesn't give you that protection.

How long the plan lasts

After the first two windows, the rules expect lenders to join in annual application rounds.

If you would rather not wait for a loan, our calculator gives an illustrative estimate of output and bill savings for homes in Great Britain, and the solar panel cost guide shows what a quote should include. Installed panels and batteries carry 0% VAT when the installer supplies and fits them, until 31 March 2027 (then 5% unless extended), whichever way you pay.

Frequently asked questions

Who is eligible for the Warm Homes Plan?

It depends on the part. The loans are open to homeowners and private landlords anywhere in the UK, with no income test, subject to each lender's checks. The Local Grant is for lower-income households in England in homes rated EPC D to G. Boiler Upgrade Scheme grants for heat pumps and biomass boilers are open to eligible households in England and Wales.

Are Warm Homes Plan loans 0%?

Not necessarily. The government grant aims to cut a lender's normal rate by up to 5 percentage points, never below zero. A loan reaches 0% through the grant alone only if the lender's normal rate is 5% or less, although lenders and installers can add their own discounts.

Does the Warm Homes Plan cover batteries?

Yes. The loan scheme covers a battery up to £15,000, with or without solar panels, and the plan's low-income schemes can include batteries. Our solar battery storage guide explains how home batteries work.

Can landlords get funding through the Warm Homes Plan?

Private landlords can borrow through the loan scheme in their own name, but not through a company. They can also contribute to Local Grant work for eligible tenants in England.

How long will the Warm Homes Plan last?

Its published funding runs to 2029/30, and its targets are set for 2030. The loan scheme is planned as a multi-year programme.