Warm Homes Loans launched to help households finance energy upgrades

28 October 2026

Households across the UK can now apply for government-backed loans to help pay for heat pumps, solar panels and battery storage, as the government seeks to make home energy improvements more accessible.

The Warm Homes Loans scheme launched on 27 October, with 10 lenders initially offering finance, mainly at the point of sale. The loans are designed to address the high upfront costs that can prevent households from installing low-carbon technologies.

The scheme was developed through the Green Home Finance Strategic Partnership, co-chaired by the Green Finance Institute (GFI) and the Department for Energy Security and Net Zero (DESNZ).

The loans will cover a range of technologies, including solar photovoltaic (PV) panels, heat pumps, battery storage, connections to heat networks and small-scale renewable energy systems. Both unsecured and secured borrowing options are available, although the initial phase focuses mainly on unsecured loans.

Participating lenders will be responsible for assessing applications, including affordability and eligibility. The first 10 are Homeserve, HTG Finance, Propensio, Secure Trust Bank, Selina Finance, South Manchester Credit Union, Sunsave, Tandem Bank, The Money Co-op and This Bank.

The Green Finance Institute says more than 40% of homeowners without solar panels planned to install them within the next decade. However, 70% of those with no immediate plans for green home improvements cited cost as a barrier.

All installations carried out under the Warm Homes Loans scheme must be certified by the Microgeneration Certification Scheme (MCS).

Further phases of the scheme will expand the range of loan products and participating lenders. An expression-of-interest window for lenders wishing to join the next phase is expected to open in the coming months.

Rhian-Mari Thomas, CEO of the Green Finance Institute, says:

“Finance should not be the blocker for progress, yet high upfront costs remain a significant barrier to households adopting electrification technologies. That is why the Partnership is working with the green home finance sector to build and diversify the range of financing options available, while continuing to drive demand, smooth the consumer journey, build supply chains and strengthen consumer productions.

“Getting these government-backed loans to market required stakeholders across the value chain to coordinate at pace. This kind of radical collaboration will be critical to delivering resilience, adaptation and the wider transition at scale.”

Lisa Cooke, MD at MCS, comments:

“With 2026 set to be another record-breaking year for certified renewable installations, it’s clear that more people than ever before are putting their confidence in home-grown energy. The introduction of the Warm Homes Loan Scheme builds on this momentum, helping more households access the benefits of low-carbon technologies.

“Delivering high-quality outcomes for consumers becomes even more important as installation volumes rise. The requirement for all installations delivered under the Warm Homes Loan Scheme to be MCS certified provides that assurance – in the business installing them, the products used, and the protections in place if something does go wrong.”