Warm Homes Loan Scheme

The Warm Homes Loan Scheme is a government-supported, lender-led scheme that lowers the interest rate on loans for low-carbon home upgrades such as heat pumps and solar panels. It is part of the wider Warm Homes Plan, and it is aimed mainly at homeowners, with private landlords able to take part too.

How the Loan Scheme Works

• Lower Interest Rates: The government provides a capital grant of up to 20% paid directly to the lender, reducing your overall interest rate by up to roughly five percentage points.
• Private Lenders: The government is not the lender for the Warm Homes Loan Scheme; you apply through standard FCA-regulated high-street banks, building societies, or specialist lenders.
• Eligible Costs: Funds cover green tech plus necessary supporting work like pipework and radiators.

Eligibility Requirements for the Warm Homes Loan Scheme

• Who Can Apply: Open to owner-occupiers and personal private landlords in England/Great Britain.
• Income Limits: Unlike the separate Warm Homes: Local Grant (which targets household incomes under £36,000), the loan scheme has no income threshold.
• Credit Checks: Standard lender affordability and credit assessments apply

Warm Homes Loan Scheme: Low-Cost Finance for Solar, Batteries & Heat Pumps

The government-backed Warm Homes Loan Scheme (WHLS) helps UK homeowners and private landlords fund solar panels, battery storage and heat pumps at reduced interest rates. Part of the wider £15 billion Warm Homes Plan, the scheme works through participating banks and building societies rather than direct government lending — a capital grant lowers the lender’s rate, so borrowers get cheaper finance with no income threshold or EPC requirement. Public lending is expected to launch from September 2026, subject to lenders finalising their products. If you’re planning a low-carbon home upgrade, the WHLS could make it significantly more affordable.