Everything we know so far about the Warm Homes Plan

In January 2026, the Government announced it would be investing £15 billion into helping up to one million households reduce their energy bills – the biggest initiative of its kind in UK history.  

The ‘Warm Homes Plan’ will give some households the opportunity to apply for interest-free (or low interest) loans to install solar panels, batteries and heat pumps, to cut their bills and the country’s greenhouse gas emissions, of which around 18% come from home heating.

More details about how this will work, including eligibility, will be announced later this year. But here’s everything we know so far.

Free or cheap loans for solar panels, batteries and other green tech

Working with banks and lenders, the Government plans to enable all households to access interest-free or low-interest loans to fund green home improvements, such as solar panels, batteries and heat pumps.

The loans will cover the upfront costs of these renewable technologies, and you’ll be able to use them alongside the existing Boiler Upgrade Scheme grant, which allows homeowners in England and Wales to get £7,500 towards the cost of replacing a boiler with an air source heat pump or ground source heat pump. This scheme was recently extended to 2030 and the Government is targeting 450,000 installs a year by 2030.

While we don’t yet know the maximum amount borrowable, the Government has said this will be set high enough to fund multiple green upgrades to your home. We also know it will be a phased rollout.

Low-income households in England to get free energy efficiency improvements

The good news is the existing Warm Homes: Local Grant, is set to continue. This allows some households in England earning under £36,000 per year (or on certain benefits), to get up to £30,000 worth of energy efficiency measures for free, including loft, cavity wall and external wall insulation, solar panels and heat pumps.

The separate Warm Homes: Social Housing Fund, which offers grants to housing associations and local authorities will also be boosted. Over time, the two schemes will be combined – more detail on this will be published in the spring, the Government says.

Low-income households in Wales, Scotland, and Northern Ireland can apply to their own schemes, such as the Nest Warm Homes Wales programme, Warmer Homes Scotland and Northern Ireland Affordable Warmth Scheme.

Rental properties will have to meet new energy efficiency standards

Privately-rented properties in England and Wales will have to achieve an energy performance certificate (EPC) rating of at least C – up from the current minimum requirement of E – by 2030. The Government’s proposals include “reasonable exemptions” for landlords, who will also be able to access a range of financing options, to ensure homes can be upgraded in time.

As part of the Warm Homes Plan, the Government intends to announce changes to the way homes are assessed for energy performance, to ensure ratings more accurately reflect how homes are used. We expect this to be announced later this year.

We provide complete green home energy solutions, from solar panels and batteries to EV chargers and air source heat pumps. Our service includes checking your eligibility and applying for grants and schemes on your behalf, such as the Boiler Upgrade Scheme. Get in touch to speak to our team about our solutions or try our instant quote tool, to get a tailored proposal for your home.

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If you have any questions, please contact sales@eerenewables.co.uk.