Warm Homes Loan Scheme 2026: Solar & Battery Storage Loans Explained Leave a comment
By The Eco Supermarket Team
The UK Government launched the Warm Homes Loan Scheme on 27 October 2026, offering government-supported finance for home energy upgrades including solar PV and battery storage.
The scheme is designed to reduce the cost of borrowing rather than provide a grant. Participating lenders can use government support to offer lower interest rates, and some products may be interest-free. The exact rate, term and eligibility depend on the lender and the applicant.
Warm Homes Loan Scheme at a glance
| Measure | Maximum supported loan |
|---|---|
| Solar PV panels | Up to £15,000 |
| Electrical battery storage | Up to £15,000 |
| Air-to-water heat pump | Up to £20,000 |
| Ground source heat pump | Up to £35,000 |
| Micro-renewable systems | Up to £20,000 |
These are scheme limits, not guaranteed loan amounts. The lender still carries out its own credit, affordability and eligibility checks.
What is the Warm Homes Loan Scheme?
The Warm Homes Loan Scheme is a UK Government-backed programme intended to make low-carbon home upgrades easier to finance. Instead of the Government lending directly to households, approved lenders provide the finance and use Government support to reduce borrowing costs.
Government guidance says the support can reduce interest rates by up to five percentage points compared with a lender’s standard equivalent product. Some participating lenders may offer 0% products, while others offer reduced-interest loans. Repayment periods can vary significantly and may extend to many years.
It is therefore important to compare the total amount repayable, not just the headline monthly payment or interest rate.
Who can apply?
Under the Government’s current eligibility rules, you must:
- Own the residential property being improved, with or without a mortgage.
- Have a property located in the UK.
- Use the finance for an eligible energy-saving improvement.
- Meet the individual lender’s credit, affordability and eligibility requirements.
Individual lenders can apply additional rules, so being eligible for the overall scheme does not guarantee that a particular lender will approve an application.
Can the scheme pay for solar panels and a home battery?
Yes. Solar PV and electrical battery storage are both specifically included.
The scheme supports up to £15,000 for solar PV and up to £15,000 for electrical battery storage. It is possible to finance more than one eligible measure, subject to the lender’s own product rules and overall lending assessment.
This could make the scheme particularly relevant to homeowners considering a complete solar-and-battery installation rather than buying the equipment separately.
Does the installation have to be MCS certified?
Usually, yes. Government guidance states that eligible solar PV, battery-storage and heat-pump work must be carried out by an appropriately MCS-certified installer. DIY installation is not eligible.
This is important because the lender may check both the installer and the completed MCS certification before releasing or finalising the finance.
Which lenders are offering Warm Homes loans?
The initial Government list includes:
- HomeServe Finance
- Hometree Finance
- The Money Co-op
- Propensio
- Secure Trust Bank
- Selina Finance
- South Manchester Credit Union
- Sunsave Energy
- Tandem Bank
- This Bank
More lenders and products are expected to join as the scheme develops.
Access also differs between lenders. Some allow customers to apply directly, while others work through approved installers, retailers or finance partners. Check the current lender rules before committing to an installation.
How do you apply?
You do not apply to the Government directly. Depending on the finance product, an application may be made:
- Directly to a participating lender.
- Through an approved installer or retailer.
- Through a mortgage provider where an eligible product is available.
The lender will carry out its normal affordability and credit checks and will confirm the documents required for the installation.
Can you choose your own solar installer?
It depends on the lender.
Some Warm Homes Loan products allow customers to choose an appropriately MCS-certified installer. Others are only available through installers or retailers already approved by that finance provider.
If you already have a solar or battery quotation, check with the lender that the proposed installer and equipment will be accepted before entering into a finance agreement or paying a non-refundable deposit.
Can you use the Warm Homes Loan Scheme with The Eco Supermarket?
The Eco Supermarket provides fully supplied and installed solar and battery-storage solutions.
We are currently reviewing the new Warm Homes Loan Scheme and the different lender-partner routes available. We do not currently arrange or recommend Warm Homes finance, so customers wishing to use the scheme should confirm directly with their chosen lender whether the proposed installation and installer arrangement is acceptable.
Thinking about solar or battery storage? We provide fully supplied and installed systems and can design and price a suitable setup for your home. View our Solar & Battery Installation service and request a quote here.
Is it a grant?
No. A Warm Homes Loan is still borrowing and must be repaid under the terms agreed with the lender.
Some other Government support may be used alongside a Warm Homes Loan in specific circumstances, but you cannot use multiple sources of Government funding to pay for the same eligible improvement unless the scheme rules specifically allow it.
What should you compare before choosing a loan?
Before proceeding, compare:
- The interest rate or APR.
- The monthly repayment.
- The length of the agreement.
- The total amount repayable.
- Any fees.
- Early repayment terms.
- Whether the finance is secured or unsecured.
- Whether you are restricted to a particular installer.
A lower monthly repayment over a much longer term can still result in a higher overall cost, so the total repayable figure matters.
Could solar and a battery reduce the impact of the repayments?
Solar PV can reduce the amount of electricity purchased from the grid, while battery storage can increase self-consumption and make greater use of time-of-use electricity tariffs.
Actual savings vary substantially between homes and depend on electricity consumption, system size, roof orientation, battery capacity, tariff and how the system is operated. Finance should therefore be assessed on its own terms rather than relying on estimated energy savings to guarantee affordability.
Where can I find the official information?
The latest scheme rules, eligibility criteria and lender list are available on the official GOV.UK Warm Homes Loan Scheme pages.
You can also see the Government’s current list of participating lenders.
This article is general information only and is not financial advice. The Eco Supermarket is not currently offering or arranging Warm Homes Loan Scheme finance. Loan products are subject to eligibility, affordability, credit checks and the individual lender’s terms. Always check current information directly with the lender before applying.
