The Warm Homes Plan explained: loans for green tech and free insulation

The government has announced its plans to make green technology and energy upgrades more affordable and cut energy bills for millions of families. 

While the costs of installing tech such as solar panels, heat pumps and solar batteries is falling, these products are still out of reach for many of us. The government's Warm Homes Plan intends to support UK households in their transition to cleaner energy and lower long-term energy bills.

The plan will provide direct funding support for low-income families struggling to pay their energy bills, who will receive free upgrade packages, depending on what technology and updates are most suitable for their homes.

Alongside that, all homeowners will be able to apply for new government-backed, low or zero-interest loans to install:

• solar panels
• heat pumps (both ground-source and air-source, including air-to-air)
• batteries

The plan is backed by £15 billion of government investment. It aims to upgrade up to five million homes, lift one million families out of fuel poverty by 2030 and reduce carbon emissions. 

It includes upgrades for social housing, new protections for renters, and provides allocations for devolved governments in Scotland, Wales and Northern Ireland. It also includes the Future Homes Standard, setting measures to ensure new-build homes are built cheaper to run, which will roll out in early 2026.

Details on how to get a low or zero-interest loan will be released later this year, according to the Department for Energy Security and Net Zero (DESNZ). It will be establishing a Warm Homes Agency, which it says will make it easier to navigate a currently complicated system for accessing information, funding and installations.

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What will the Warm Homes Plan cover?

The aim of the Warm Homes Plan is to cut household energy bills long-term by making it more affordable to benefit from solar panels, batteries, heat pumps and insulation.

Home upgrades available under government schemes will include: solar panels (photovoltaic and thermal), heat pumps (ground source and air source, including air-to-air), home and heat batteries, smart controls, insulation (wall, floor, and roof) and draught proofing. 

The plan has three key pillars: 

• Direct support for low-income families
• Government-backed, zero and low-interest loans for green tech
• New protections for renters

Funding for low-income homes

Low-income households and those in fuel poverty will be able to apply for support to cover the full cost of installing packages of energy upgrades. The upgrades you receive will depend on what's most suitable for your home, but may include solar panels and a storage battery, for example.

Some social housing will also be fitted with renewable technologies.

Zero and low interest loans

All households will be able to apply for new government-backed, low or zero-interest loans to install low-carbon technology, including solar panels. 

Air-to-air heat pumps will be included for the first time. These can cool homes in summer as well as heating them in winter.

Read more about: the different types of air source heat pump explained

The loans will be available on top of the existing £7,500 Boiler Upgrade Scheme grant to replace a boiler with a heat pump, which will remain available. Find out more about how the Boiler Upgrade Scheme works.

The Warm Homes Plan also includes new rules that mean all new homes should come with solar panels as standard. The government says it hopes that this combination of measures will 'triple the number of homes with solar panels by 2030'.

New protections for renters

For the third pillar of its strategy, the government says it is also updating protections for renters. It says it will be supporting landlords to make these upgrades in a fair way over the next few years. It says that if you rent a home, private or social, your landlord has a responsibility to ensure that it is safe, warm, and affordable. 

Considering solar panels or a heat pump? Here's what to check

A low or zero-interest loan doesn't escape the fact that installing solar panels, a battery or heat pump is a big investment.

A well-chosen system can provide a reliable source of electricity or heat for decades, helping to cut your energy bills and your carbon footprint.

But buying an inappropriate system for your home could leave you out of pocket. 

You'll need to consider:

• The size of your system - this will depend on how much heat or power you need to generate, whether you're also installing a battery to store excess and how much space you have
• What's most suited to your home - roof space and the direction your home faces are key for solar panels, while your home's insulation affects the efficiency of a heat pump
• Total costs - look for government financial support, such as the boiler replacement grant, and factor in how much you'd expect to save on your energy bills vs the cost of the new technology
• Choose a trustworthy installer - use Which? Trusted Traders to find a reputable installer near you.

Read more expert advice on buying advice for solar panels, solar panel battery storage and what you need to know about heat pumps vs boilers.

Watch out for solar panel scams

We often see a flurry of copycat scams whenever a new government funding scheme such as this is announced. 

Bear in mind that you can't apply for these government-backed loans yet. The government has not yet said how these loans will be made available, when the scheme opens up.

So be wary of any unsolicited text, email or phone call that claims to be offering access to a Warm Homes Plan loan or government-backed scheme. For now, it's likely to be a scam.  

We'll update this story with more information when the government releases how and when you can start to apply for loans.

Find out how to spot a scam.