The Warm Homes Loan Scheme 2026: Eligibility, Rates, and How To Apply

The Warm Homes Loan Scheme (WHLS), part of the UK government’s Warm Homes Plan, is an initiative by the Department for Energy Security and Net Zero (DESNZ) designed to provide affordable finance for low-carbon home upgrades. The government says it is providing £300 million of grant capital to participating, FCA regulated lenders.

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Key Takeaways

• The Warm Homes Loan Scheme helps UK homeowners finance energy efficiency improvements through participating lenders.
• The scheme is expected to launch to consumers in late 2026 after participating lenders have been approved.
• Funding can be used for low-carbon technologies including solar PV, battery storage, and heat pumps.
• The loan is separate from grant schemes such as the Warm Homes Local Grant and the Boiler Upgrade Scheme.
• Homeowners will still need to meet lenders’ affordability and credit requirements.

What Is The Warm Homes Loan Scheme 2026?

The Warm Homes Loan 2026 is a government supported initiative to help more homeowners cover the upfront cost of low carbon home improvements including solar PV systems and heat pumps.

Rather than lending money directly, the government works with approved banks, building societies, credit unions and specialist finance providers that offer qualifying loan products. These lenders began applying to participate from June 2026, and the consumer launch will happen later in 2026. The scheme is intended to increase access to finance for home retrofit projects that reduce carbon emissions while lowering long-term energy bills. The exact loan products, repayment periods and interest rates will vary between lenders.

What Can The Warm Homes Loan Be Used For?

The Warm Homes Loan Scheme is designed to finance approved energy-saving improvements that reduce household emissions and improve energy efficiency. Eligible measures are expected to include:

• Solar Panels
• Home Battery Storage
• Air Source Heat Pumps and Ground Source Heat Pumps
• Insulation Improvements
• Other Eligible Low Carbon Heating Technologies

Some lenders may also finance associated works necessary to complete the installation.

Who Is Eligible For The Warm Homes Loan Scheme?

While participating lenders will set their own lending criteria, Phase 1 of the scheme is expected to be available to owner-occupiers of existing homes and private landlords borrowing in a personal capacity.

Unlike income-tested grants, there aren’t currently income limits or minimum EPC requirements for the loan; however, borrowers will still need to satisfy the lender’s affordability checks and credit assessment. Businesses and corporate property ownership structures are not included, at least during the initial phase.

Are the Warm Homes Loan Scheme and Warm Homes Local Grant The Same Thing?

No, although both sit under the government’s wider Warm Homes Plan, they are very different and have different eligibility criteria. The Warm Homes Loan Scheme provides repayable finance through lenders, while the Warm Homes Local Grant provides free home energy improvements for lower-income households in England through local authorities.

The Warm Homes Local Grant requires applicants to: live in England, own or privately rent an eligible property, have an EPC rating between D and G, and crucially, meet income, postcode or qualifying benefit criteria. Grant recipients do not repay the funding, unlike the loan.

What Is The Difference Between The Warm Homes Plan and Warm Homes Loan Scheme?

The Warm Homes Plan is the government’s wider long-term strategy to improve the UK’s housing stock, which includes a number of policies and funding schemes, including:

• The Warm Homes Loan Scheme (launching late 2026)
• The Warm Homes Local Grant (launched April 2025)
• Boiler Upgrade Scheme (launched 22nd May 2022)
• Additional retrofit and energy efficiency initiatives

The Warm Homes Loan Scheme is just one part of this wider programme. Think of the Plan as the umbrella policy, while the Warm Homes Loan Scheme is one financing option available under it.

Warm Homes Loan Scheme vs Boiler Upgrade Scheme: What Is The Difference?

The Warm Homes Loan Scheme and the Boiler Upgrade Scheme are both part of the Warm Homes Plan, but they aren’t the same thing. Read more about the BUS eligibility and application process in our UK Boiler Upgrade Scheme Complete Guide.

The key differences between the Warm Homes Loan and Boiler Upgrade Scheme are:

The two can be used together in some circumstances. For example, a homeowner could receive a Boiler Upgrade Scheme grant for a heat pump while using a Warm Homes Loan to help finance additional works such as insulation or solar panels.

How To Apply For The Warm Homes Loan Scheme

When Will The Loan Launch?

The government invited lenders to join the scheme in June 2026.

Consumer loan products are expected to become available during late 2026 once participating lenders have completed onboarding and launched their finance products, and the exact launch date may vary depending on individual lenders.

What Government Schemes Can Pay For Energy Upgrades in the UK?

Alongside the Warm Homes Loan Scheme, there are other grants and loans available to support low carbon upgrades. These include:

• Boiler Upgrade Scheme (BUS) – Grants towards eligible heat pump installations.
• Warm Homes Local Grant – Free energy efficiency improvements for qualifying lower-income households.
• Smart Export Guarantee (SEG) – Payments for exporting surplus solar electricity to the grid.
• 0% VAT on qualifying energy-saving materials – Reduced installation costs for eligible technologies.

Because these schemes have different eligibility rules, some homeowners may be able to combine support to reduce overall project costs.

Let’s Recap

The Warm Homes Loan Scheme is designed to remove one of the biggest barriers to home decarbonisation – the upfront cost.

Instead of offering grants, the government is supporting private lenders to provide finance for approved energy-saving improvements such as solar PV, battery storage, heat pumps, and insulation.

With lenders joining the scheme during 2026 and customer products expected later in the year, homeowners planning major energy upgrades should keep an eye on participating lenders and official guidance as more details become available. We’ll be sharing updates on our website and social media accounts, so make sure you’re following our official Upvolt Reddit, LinkedIn, Instagram and Facebook.

About Upvolt

Upvolt is a renewable energy installer serving homeowners and businesses across southern England, specialising in solar panels, battery storage, heat pumps, and EV chargers. The advisory approach starts with an honest assessment of what a property actually needs.

When a homeowner is ready to explore solar, battery storage, or smarter energy management, Upvolt’s process begins with understanding their current consumption patterns, tariff, and roof characteristics before any system is recommended. Upvolt’s MCS-certified operating companies install systems that deliver verified, measurable energy savings.

Solar, battery storage, and smarter energy management deliver savings on a different scale to voltage optimisation, but which one is right for your home still depends on your roof, your usage, and your current setup. Upvolt can work through that with you, with a free, no-obligation quote, before you spend anything.

FAQ

Is the Warm Homes Loan Scheme a government loan?

No. The government supports the scheme, but loans are provided by approved participating lenders rather than directly by the government.

Is the Warm Homes Scheme interest free?

The government has indicated that participating lenders may offer low- or zero-interest products, but rates will depend on the lender and product selected.

Can I use the Warm Homes Loan for solar panels?

Yes, solar PV systems are expected to be one of the eligible improvements under the scheme.

Can landlords apply for the loan?

Yes, phase 1 is expected to include private landlords borrowing in a personal capacity.

Can I combine the loan with the Boiler Upgrade Scheme?

Yes, subject to scheme rules and lender terms, homeowners may be able to combine a Boiler Upgrade Scheme grant with a Warm Homes Loan to help fund additional eligible improvements.

Alex Lomax

CEO & Co-Founder

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