What is the Warm Homes Loan Scheme?
The Warm Homes Loan Scheme (WHLS) is the lending arm of the government's £15 billion Warm Homes Plan, run by the Department for Energy Security and Net Zero (DESNZ). It provides low-interest loans for home energy upgrades — solar panels, battery storage, heat pumps and more.
The key thing to understand: this is a loan, not a grant. You repay it. It's designed for the "able to pay" market — households who can afford monthly repayments but don't want (or can't) stump up the full cost upfront.
Unlike a grant, you apply through a normal lender (a bank or finance provider). The government subsidises the lender to cut your interest rate — it doesn't lend to you directly.
When does it launch?
Loans are expected to become available around September 2026 — subject to final approvals and participating lenders publishing their products. DESNZ opened lender applications in June 2026 and closed the first window on 17 July 2026.
The September 2026 date is an expected/indicative launch, not a hard commitment. Actual availability depends on lenders completing onboarding and product approval. Treat it as "around autumn 2026" until a specific date is announced.
What it covers
The scheme covers a defined list of low-carbon measures, each with its own loan cap (published in the official Scheme Rules):
| Measure | Maximum loan | Notes |
|---|---|---|
| Solar PV | £15,000 | Roof-mounted, MCS-certified |
| Battery storage | £15,000 | Standalone or paired with solar |
| Air-to-water heat pump | £20,000 | Before any BUS grant |
| Ground-source heat pump | £35,000 | Before any BUS grant |
| Biomass boiler | £20,000 | Rural properties only |
An EV chargepoint can be included, but only as part of a solar and/or battery installation — it can't be financed standalone. Insulation, windows and doors are not covered by the subsidy.
The interest rate & terms
The headline is "0–3% loans" — but read this carefully:
- The government has committed £300 million of grant capital to subsidise lenders.
- The subsidy is designed to cut a lender's normal rate by up to about five percentage points, for loan terms of three years or longer.
- So a normal 5% rate could fall to 0%, while a normal 8% rate might fall to around 3%.
The actual APR depends on each lender's pricing. A 0% product may appear from some lenders, but it is not a blanket promise. Actual products, APRs and fees have not yet been published — compare the total cost, not the headline rate.
Who's eligible?
The scheme is aimed at owner-occupiers and private landlords borrowing personally, primarily in England.
- No income thresholds — unlike grants, it's not means-tested.
- No minimum EPC rating and no property-type restriction.
- Standard credit and affordability checks still apply — it's a normal FCA-regulated loan, so you still need to pass the lender's checks.
- Landlords can apply for one loan per property.
If you wouldn't pass a credit check for a normal personal loan, the scheme doesn't change that.
Loan vs grant: which is right for you?
| Option | What it is | Best for |
|---|---|---|
| 0% VAT | No VAT on solar installs (to 31 Mar 2027) | Everyone — automatic |
| Warm Homes Local Grant | Free funding (up to £30,000) | Low-income, EPC D–G |
| ECO4 | Free funding (to 31 Dec 2026) | Benefit recipients |
| Warm Homes Loan | Low-interest loan | Able to repay, no upfront cash |
Rule of thumb: if you qualify for a grant, take the grant first (free beats cheap). If you don't qualify for grants but can afford repayments, the loan is the bridge. See grants & funding and VAT 2027.
Should you take the loan (vs pay upfront)?
The honest answer depends on your finances, not on hype:
- If you have the cash — a 0–3% loan is still attractive if your money earns more elsewhere (or you'd rather keep a cash buffer).
- If you don't have the cash — a low-interest loan makes solar possible now instead of years away, and your savings can offset the repayments.
Don't over-borrow just because the rate is low. Run the numbers in is solar worth it? and home battery ROI first, then decide whether borrowing makes the numbers work.
FAQ
When does the Warm Homes Loan Scheme launch?
Expected around September 2026, subject to final approvals and lender product launches.
What interest rate will the loans be?
Around 0–3%, with government subsidy cutting lenders' rates by up to roughly five percentage points. 0% is possible but not guaranteed.
What can I borrow for?
Solar PV (£15,000 cap), battery storage (£15,000), heat pumps (£20,000–£35,000) and more. EV chargepoints only as part of a solar/battery install.
How do I apply?
Through a participating lender, once products launch. The exact process will be published by lenders.
Does it cover Scotland and Wales?
The scheme is primarily England-wide. Scotland has Home Energy Scotland, and Wales has its own programmes.
What can the loan cover?
Solar PV (up to £15,000), battery storage (up to £15,000), air-to-water heat pumps (up to £20,000) and ground-source heat pumps (up to £35,000). EV chargepoints can only be financed as part of a solar or battery installation.
Does the scheme cover Scotland and Wales?
The Warm Homes Loan Scheme is primarily an England-wide scheme. Scotland has its own Home Energy Scotland support and Wales has separate programmes — check your devolved nation's schemes.
Sources: DESNZ Warm Homes Loan Scheme Rules (June 2026), Warm Homes Plan documentation, industry coverage of the official Scheme Rules. Launch date, interest rates and loan caps are expected/indicative — confirm the current position with DESNZ or a participating lender before borrowing.
Disclaimer: this guide is for general information only and is not financial advice. Loans are subject to lender credit checks and affordability assessment. Always read the full terms and compare total cost before borrowing.