UK launches Warm Home Loans for solar and heat pump upgrades
Government-backed scheme offers households interest-free loans up to £35,000 to fund clean energy upgrades, as heat pump grant cuts loom.
What to know
- The Warm Home Loans scheme offers households interest-free or low-interest loans up to £35,000 with no upfront costs, enabling installation of heat pumps, solar panels, and batteries.
- Potential savings reach £550–£850 annually depending on technology and tariff choices, targeting the rising demand for low-carbon home upgrades.
- The scheme arrives as the government prepares to cut hundreds of millions from its existing heat pump grant programme, reorienting support toward loans rather than grants.
“an opportunity to take that further by removing barriers to low-carbon technologies”
Chris Norbury, CEO of E.On UK · The Guardian ↗
Miatta Fahnbulleh Energy secretaryChris Norbury CEO of E.On UK
John Healey Chancellor of the Exchequer
How it unfolded 2 developments, newest first · click a bar or a number to jump articlesposts
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Heat pump loan details and savings projections outlined
Ground-source heat pumps can access loans of up to £35,000, while air-source models are eligible for up to £10,000. Installing a heat pump, battery, and solar panels could save households up to £550 per year on energy bills, with potential additional savings of £300 annually through time-of-use tariffs. A trial with E.On showed fuel-poor customers in Coventry saved more than £250 annually by combining home batteries with time-of-use tariffs.
“a recent trial showed that fuel-poor customers in Coventry were able to save more than £250 a year on average by combining a home battery with a time of use tariff…”
— Chris Norbury, CEO of E.On UK -
first by Mastodon, 11d ago · also Guardian Environment, Guardian
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Can't afford solar or a heat pump? New UK Government scheme offers interest-free or cheap loans of up to £20,000 to help upgrade your heating setup and cut your bills https://www. techradar.com/home/smart-home/ cant-afford-solar-or-a-heat-pump-new-uk-government-scheme-offers-interest-free-or-cheap-loans-of-up-to-gbp20-000-to-help-upgrade-your-heati…
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Great news. This could help a huge number of people save big on energy bills
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Scheme announced alongside planned cuts to heat pump grants
The government announced the Warm Home Loans scheme a day before Chancellor John Healey's first budget. Reports indicate the budget will include plans to scale back grants from the existing boiler upgrade scheme, cutting hundreds of millions from its £2.7bn five-year budget. Treasury officials reportedly view the current grants as a subsidy used mainly by middle-class households.
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UK launches Warm Home Loans scheme — The government-backed Warm Home Loans scheme launched on Tuesday, offering households interest-free or low-interest loans ranging from £7,500 to £35,000 to fund upgrades such as heat pumps, batteries, and solar panels. Energy suppliers including British Gas and E.On partnered with lenders Tandem Bank and Homeserve to offer the loans directly to customers at discounted rates.