First Facts About Warm Homes Loans Published for Rooftop Solar Installations

The government has published the first tranche of information about the Warm Homes Loan Scheme for technology like solar panels, batteries and heat pumps.

The no- and low-interest loans will allow people to install clean energy technology without any upfront cost, instead spreading payments over up to 30 years.

Installing Rooftop Solar

Demand for clean energy technologies is soaring, with almost 150,000 solar panel installations in the first half of 2026.

Under the Warm Homes Loan Scheme, borrowers can lend up to 15,000 to install solar. The government estimates installing solar panels could help families save up to £550 a year on their energy bills, rising by a further £300 a year with a time-of-use tariff.

Lisa Cooke, Managing Director at MCS, said, “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. “

Homeowners will be able to additionally combine a loan with a grant of up to £9,000 through the government’s Boiler Upgrade Scheme (and Home Energy Scotland in Scotland) to install a heat pump.

The Warm Home loans are available to households across the entire UK – in England, Scotland, Wales and Northern Ireland.

Interest Rates 

The government says it has worked with lenders to deliver up to 5% reductions in interest rates compared to regular bank loans, but few exact rates are available yet.

Ten lenders are initially offering loans, most have not yet published their rates:

• Homeserve (partnering with E.On) no information available yet
• Hometree Finance no information available
• Propensio no information available
• Secure Trust Bank no information available
• Selina Finance no information available
• South Manchester Credit Union up to 15,000 at 3.6% for up to 9.8 years.
• Sunsave offers up to lifetime loan. Cites representative example of 5.9% over 10 years.
• Tandem Bank says its loan will be available to apply for via a MCS registered installer only.
• The Money Co-op   £7,500 to £25,000 at 2.7% APR
• This Bank  no information available

The government says further lenders and products are expected to join the scheme as it develops.

Loan Limits

The maximum size of loan supported for each available technology is:

• Solar panels – up to £15,000
• Electrical storage battery – up to £15,000
• Air-water source heat pump – up to £20,000
• Air-air source heat pump – up to £10,000 (when MCS certification available)
• Ground source heat pump – up to £35,000
• Biomass boiler – up to £20,000
• Heat network connection – up to £7,500
• Micro-renewable system – up to £20,000

All installations, except for heat network connections, will be carried out by MCS-certified installers, giving consumers confidence that recognised technical and consumer-protection standards will be met.

Money Saving Expert is already warning consumers of scam schemes.

Lisa Cooke, MCS MD, commented, “Delivering high-quality outcomes for consumers becomes even more important as installation volumes rise. The requirement for small-scale renewable 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. It is a reflection of the changes MCS has made which put consumer protection at the heart of our Scheme and demonstrates the commitment to quality that all MCS certified installers have made.”

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