Government loans for solar panels: explained

The biggest barrier to getting home energy tech like solar & battery systems and heat pumps is the upfront cost. To tackle that, the government is cutting the price of borrowing.

The Warm Homes Loan Scheme allows homeowners to get a loan with a significantly reduced interest rate from us and other approved lenders.

In this guide, we'll explain how the scheme works, what it covers, and who's eligible.

Sunsave provides solar panels and batteries through the scheme, as one of the government's approved lenders. With Sunsave, you can pick from a variety of loan terms that last anywhere from three to 20 years.

If you'd like to see the savings you could get from a solar & battery system – or a standalone home battery – just answer a few questions below, and we’ll provide an estimate.

Can you get a government loan for solar panels?

You can get a government loan for solar panels – and use it for home batteries, too. It's called the Warm Homes Loan Scheme, and it was launched by the UK government in October 2026.

This initiative is part of the Warm Homes Plan, a multi-billion-pound scheme that aims to cut energy bills, reduce carbon emissions, and bring down fuel poverty.

British households on the energy price cap are paying 79% more than they were in winter 2020/21, and there are no signs of this rise slowing down. EDF is currently predicting a further 22% spike in prices in January 2027.

This has all left 43% of homes in fuel poverty, meaning they're spending more than 10% of their household income on energy.

To achieve these aims, the government wants to upgrade five million homes by 2030, including putting solar panels on up to three million more households.

Solar panels can cut your energy bills – as can home batteries – which is why they're both playing such a prominent role in the scheme.

Around 1.6 million UK homes had solar panels when they made this aim, so another three million would represent a massive increase.

How does the scheme work?

The government pays a grant to approved lenders. In return, those lenders lower the interest rate on loans for certain home energy installations, including solar & battery systems and standalone home batteries.

The grant's value will be passed on to you in the form of reducing your loan's interest rate.

So for you, it'll work like any other monthly loan: you'll borrow the same amount of money, and pay it back in regular instalments. The interest rate – and therefore the total amount you pay – will simply be far lower than it otherwise would be.

We've gone into more detail on the nuts and bolts of how the scheme operates further down.

What does the scheme cover?

The scheme provides lower interest rates for loans on solar panels, batteries, and heat pumps.

It also covers less common technologies, such as domestic wind turbines, biomass boilers, heat network connections, and micro hydroelectric systems.

If you get a loan for solar panels or a battery through the scheme, you can add an EV charger to the same low-interest loan, as long as it doesn't push your borrowing over the funding limit. More on the limits lower down.

What if you already have solar panels?

If you already have solar panels and you'd like to add more, you can use the scheme to take out a low-interest loan that pays for the installation.

This is also the case if you want to add a battery to your solar panels, or any other home energy tech included in the scheme.

Who is eligible?

You can qualify for a loan through the Warm Homes Loan Scheme if:

Private renters, social housing tenants, and businesses can't access the scheme, though private renters could suggest it to their landlord.

Sunsave provides solar panels and batteries through the scheme, as one of the government's approved lenders.

With Sunsave, you can pick from a variety of loan terms that last anywhere from three to 20 years, with interest rates that start from 0%.

If you'd like to see the savings you could get from a solar & battery system, just answer a few questions below, and we’ll provide an estimate.

Finance subject to acceptance. Representative example: 36 monthly instalments of £188. 0% representative APR. Based on a loan of £6,753 at a fixed interest rate of 0% per year. Total amount repayable: £6,753.

How low is the interest rate?

Your interest rate will depend on multiple factors, as there's no set rate for loans issued as part of the scheme.

However, the initiative aims to take up to five percentage points off the interest rate of loans, potentially saving you thousands of pounds. For example, a loan that'd usually come with an 8% interest rate could now offer as low as a 3% rate.

Here's how it works: the government will give your lender up to 20% of the amount you borrow, and the lender will cut your interest rate accordingly.

There is an upper limit, though. The government will only reduce the cost of loans up to a certain size, as outlined in the table below.

A typical solar panel system in the UK costs around £8,000,, and a 10kWh battery is priced at roughly £4,000 – which leaves you well within the maximum loan limit of £30,000 for these two products. For more information, read our guide to solar panel costs.

The scheme covers the cost of everything that's usually included in a solar installation, from scaffolding and electrical work to your new grid connection.

However, the government won't fund any replacement roofing or other structural work to your home – so if you need any work done to your roof before you go solar, you'll have to pay for it separately.

Air-to-air heat pumps are set to be included in the scheme with a £10,000 upper limit, before the Boiler Upgrade Scheme's £2,500 discount.

But this will only happen after they've become an eligible measure in the Boiler Upgrade Scheme – and this requires MCS to create a whole new set of standards.

How to apply

To apply, just get in touch with one of these approved lenders, either directly or through an installer:

The UK government has also published the full list of lenders here.

Sunsave Energy Limited is authorised and regulated by the Financial Conduct Authority as a lender, and has been approved by the Department for Energy Security and Net Zero to offer loans under the scheme.

We provide solar panels and batteries – and we're also one of the scheme's installers, thanks to our MCS-certified installation team.

This matters, because the scheme comes with several moving parts, including eligibility checks, installer verifications, grant claims, and government reporting.

When one company handles every step of your loan, there's less for you to chase, and fewer things that can go wrong.

Once you've contacted a lender – like Sunsave – you'll need to take these five steps:

1. Request a quote

You'll have to ask for a quote from an installer.

This process will differ depending on which installer you choose.

If you pick Sunsave, we'll ask you about your home and what kind of gear you'd like, and we'll design the best possible system for your household.

We'll also tell you the project's cost and your estimated savings, so you can make an informed decision.

2. Apply for finance

The next step is to apply for your loan.

With Sunsave, we'll check if you qualify for the scheme, using the eligibility criteria we ran through earlier, and make sure that you can afford the loan.

3. Sign your loan agreement

If you clear those hurdles, you'll be free to sign your loan agreement, which must last at least three years.

Alongside this document, the government requires that you sign a one-page declaration confirming that:

• you haven’t received – and won’t claim – another public grant for the same equipment (except via the Boiler Upgrade Scheme or Home Energy Scotland Grant and Loan scheme)
• the loan isn't being used to replace one renewable heating system with another
• your home is a residential property, and you’re its owner or private landlord
• the government can send someone to check your installation, as an anti-fraud measure – though they’ll always ask first
• you understand that details of your loan and installation will be shared with the government to help it run the scheme

This declaration is an extra precaution, put in place because the government wants to be careful with how it uses public money.

It won't change how your loan works; it'll simply give the government the confidence to keep funding the scheme.

4. Get your system installed

Your installer can then move ahead with fitting your system.

Your lender is responsible for ensuring your installer and equipment are both certified by MCS. This is a requirement for all systems apart from heat network connections.

A solar & battery installation typically takes less than two days, while a home battery can usually be fitted in less than a day.

If you choose Sunsave, our MCS-certified team will fit your system and teach you how to use it.

We'll also let you know in advance how long we expect your installation to take, and agree a plan with you.

5. Start paying your loan

At this point, your loan – with its reduced interest rate – will begin.

Simultaneously, your new system – whether it includes solar panels, a battery, or other gear – should start saving you money on your energy bills.

How long will the scheme last for?

The scheme began in October 2026, and is currently scheduled to end on 31 March 2030.

However, there will be a limited amount of money available. The government intends to provide up to £300 million, with £90 million set aside for the first year.

Lenders will receive grants on a first-come, first-served basis – and if funding runs out, there's no guarantee there'll be more.

Every month, the government will reveal the number of loans and their total value. The government also plans to give lenders at least six months' notice before ending the scheme.

The scheme won't last forever – but as long as you sign your loan agreement before it ends, it'll be eligible for a lower interest rate.

Why did the government set up the scheme?

The government set up the scheme to encourage households to get home energy tech like solar panels and heat pumps, as this leads to lower energy bills and carbon emissions.

Lots of households would like to get one or both of these products installed, but can't justify the high upfront cost, and view standard borrowing as too expensive to make it worthwhile.

This is supported by a survey we conducted in Spring 2026, in which 57% of homeowners named the high upfront cost as one of the reasons they don't have solar panels installed.

The government calls these households ‘able to borrow’: people who are motivated to make the switch, but have been put off by the cost of finance.

This scheme is squarely aimed at them.

Can you pay off your loan early?

Your ability to pay off your loan before the end of your contract will depend on your lender – but with Sunsave, you can pay it off in part or in full at any time, for free.

If you want to end your loan early, you’ll just need to pay the outstanding credit amount.

Or you could pay off part of your loan, which would allow you to pay less interest overall. You’ll be able to choose whether to shorten your term or reduce your monthly payments.

Next steps

Sunsave provides solar panels and batteries through the scheme, as one of the government's approved lenders.

With Sunsave, you can pick from a variety of loan terms that last anywhere from three to 20 years.

You also don't have to borrow the full amount – you can pay some upfront and borrow the rest. You can also pay it off (in full or in part) with no penalties – whenever you like.

If you do choose Sunsave, we’ll be your installer and your lender, meaning you won’t have to deal with two different companies. As it stands, we're the only ones who can offer this.

If you'd like to see the savings you could get from a solar & battery system, just answer a few questions below, and we’ll provide an estimate.