The Department for Energy Security and Net Zero (DESNZ) published the factsheet for the Warm Homes Loan Scheme on 27 October 2026, setting out how the no- and low-interest loans will work, which lenders are taking part and the maximum amount that can be borrowed for each technology1. The scheme is open to households across the entire UK, in England, Scotland, Wales and Northern Ireland1.
Ten lenders are offering loans initially, some interest free, with up to thirty years to repay in some cases1. They are Homeserve (partnering with E.On), Hometree Finance, Propensio, Secure Trust Bank, Selina Finance, South Manchester Credit Union, Sunsave, Tandem Bank, The Money Co-op and This Bank1. DESNZ describes this as the first part of the scheme's offer, with further lenders and products expected to join as it develops1. The government says it has worked with lenders to deliver an up-to-5 per cent reduction in interest rates compared with regular loans from banks or high street lenders1. Its worked example is a homeowner borrowing £10,000 at 8 per cent over seven years, repaying around £155 a month on a loan available now, and saving up to £285 a year on repayments through the scheme1.
The maximum loan supported for each technology is1:
| Technology | Maximum loan |
|---|---|
| Solar panels | £15,000 |
| Electrical storage battery | £15,000 |
| Air-water source heat pump | £20,000 |
| Air-air source heat pump | £10,000 (when MCS certification available) |
| Ground source heat pump | £35,000 |
| Biomass boiler | £20,000 |
| Heat network connection | £7,500 |
| Micro-renewable system | £20,000 |
All installations except heat network connections must be carried out by MCS-certified installers1. MCS, the UK's quality mark for small-scale renewables, said all installations must be MCS certified to qualify, and that depending on the type of loan, consumers will apply through a participating lender or arrange finance directly through an approved installer or mortgage provider2. Homeowners can also combine a loan with a grant of up to £9,000 through the Boiler Upgrade Scheme, and Home Energy Scotland in Scotland1. DESNZ says installing a heat pump, battery and solar panels could help families save up to £550 a year on energy bills, rising by a further £300 a year with a time-of-use tariff1. It reports almost 150,000 solar panel installations in the first six months of this year and record heat pump sales in 20251. The Express reported the combined savings as "up to £850 a year"3; that figure is the sum of the £550 and £300 components given by DESNZ1.
"Ten lenders are initially offering loans, some interest free, meaning people can shop around for the one that works best, with up to thirty years to repay in some cases."
Why it matters for households
The scheme is aimed at the upfront cost of clean energy technology, which DESNZ identifies as a barrier to installation1. Spreading that cost over years, at a rate reduced by up to 5 percentage points against regular bank lending, changes the arithmetic for a household weighing a heat pump, battery or solar array against its bills1. The savings DESNZ cites are annual figures: up to £550 from a combined heat pump, battery and solar installation, and a further £300 with a time-of-use tariff that rewards shifting demand1. For energy independence, the practical effect is that a household can finance generation and storage it would otherwise pay for in one sum, and pair a heat pump with a Boiler Upgrade Scheme grant of up to £9,0001. The MCS requirement means the work is done to a recognised standard, with consumer protection attached1. Lenders will carry out normal affordability, credit and eligibility checks, and DESNZ advises applicants to keep records including the quote, finance agreement, invoice, proof of purchase and MCS certificate1. The factsheet does not set out eligibility criteria beyond UK-wide availability, and no income or property thresholds have been reported1.
What happens next
DESNZ says further lenders and products are expected to join the scheme as it develops1. No dates for that expansion have been reported1. Applications go to a participating lender or installer, with the lender carrying out affordability, credit and eligibility checks1.
More detail on loan and finance routes is in the guide to interest-free loans and finance schemes for home energy work, and the Boiler Upgrade Scheme eligibility page covers the grant that can sit alongside a loan. The DESNZ page profiles the department running the scheme.