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

The Warm Homes Loan Scheme will allow homeowners to get a loan with a significantly reduced interest rate via a group of approved lenders.

In this guide, we'll explain how the scheme will work, what it'll cover, and who'll be eligible.

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.

Can you get a government loan for solar panels?

You can get a government loan for solar panels. It's called the Warm Homes Loan Scheme, and is set to be launched by the UK government after September 2026.

This initiative is part of the £15 billion Warm Homes Plan, which 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 produce excellent energy bill savings – as do 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 will pay a grant to approved lenders. In return, those lenders must lower the interest rate on loans for certain home energy installations, including solar & battery systems.

Every penny of the grant must be passed on to you in the form of reducing your loan's interest rate – lenders aren't allowed to keep any of it.

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 installments. The interest rate – and therefore the total amount you pay – will just be 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'll 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.

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.

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 does aim to take up to five percentage points off the interest rate of loans, potentially saving you thousands of pounds overall.

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.

However, 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, you'll need to take these six steps:

1. Choose a lender

First, pick an approved lender from the government's list.

This will be released to the public when the scheme launches after September.

2. Request a quote

If your lender is embedded with your installer, they'll automatically start the quote process with you.

If not, you'll need to get a quote you're happy with, and present it to your lender.

This should just involve you telling an MCS-certified installer about your home and which products you'd like, after which they'll design the best possible system for your household.

They should also tell you the project's cost and your estimated savings, so you can make an informed decision. If you're good to go ahead, you'll just need to get an itemised cost list of improvements from your installer, and give it to your lender.

3. Apply for finance

You can then apply for your loan.

Your lender will check if you qualify for the scheme, using the eligibility criteria we ran through earlier, plus any requirements it adds on.

The lender will also make sure that you can afford the loan.

4. 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.

5. Get your system installed

Your installation can then go ahead.

Your lender is responsible for ensuring your installer and equipment are both certified by the 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.

6. Start paying your loan

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

Simultaneously, your new home energy tech should start saving you money on your energy bills.

How long will the scheme last for?

The scheme starts after September 2026, and has been designed as a multi-year programme.

However, there's a fixed amount of money available, specifically £300 million.

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.

Next steps

The scheme’s approved lenders are set to offer solar panels, batteries, heat pumps, and more at low-interest rates.

This represents an excellent opportunity for loads of households to make the switch and significantly cut their energy bills.

With Solar & Battery Plus, we're already giving households this chance.

84% of our customers make day one savings, and on top of that, you'll get the Solar & Battery Guarantee, which comes with 24/7 monitoring, maintenance, free replacement parts, and downtime credit for the full term of your contract.

To see how much you could save, just answer a few questions below, and we’ll provide an estimate.

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