Blog

In October 2026, the Government announced the details of its Warm Homes Loan Scheme, which offers low and no-interest loans to help homeowners install solar panels, battery storage and heat pumps. You pay nothing upfront, and you spread the cost over many years.

So, if the initial investment in solar panels or a battery has stopped you before, this scheme may change the numbers for you. 

What is the Warm Homes Loan Scheme?

The Warm Homes Loan Scheme is a government-backed loan scheme for clean energy upgrades to your home. You don’t borrow from the Government; you borrow from a participating lender, who offers a lower interest rate because of the Government’s support.

The Government says the scheme gives interest rates up to 5% lower than regular loans from banks and high street lenders, and selected lenders will offer loans with no interest at all. Do note that it is a loan and not a grant, so you must pay it back. But the lower rate makes it a cheaper way to spread the cost than most other borrowing.

Lower-income households may be eligible for the Warm Homes: Local Grant, which does not need to be paid back.

Who is eligible for the Warm Homes Loan Scheme?

The scheme is open to households across the UK, including here in Sussex. To qualify:

• Your property must be in the UK
• You must own it, with or without a mortgage*
• The property must be residential, not a commercial building
• An MCS-certified installer must fit your system
• You must pass your lender’s normal credit, affordability and eligibility checks

MCS stands for the Microgeneration Certification Scheme, which is the UK standard for installers of solar panels, batteries and heat pumps. It means your installation meets recognised technical and consumer-protection standards. We’re MCS-certified – so if you’re eligible, we’ll include a Warm Homes Loan as a payment option in your quote. 

What you can use the loan for

Each technology has a maximum amount you can borrow:

Technology type	Maximum loan amount
Solar panels	Up to £15,000
Battery storage	Up to £15,000
Air source heat pumps	Up to £20,000
Ground source heat pumps	Up to £35,000
Heat network connections	Up to £7,500
Micro-renewable systems, e.g. domestic wind turbines, micro-hydroelectric systems	Up to £20,000

These amounts are limits on what you can borrow. Your loan will match the cost of your quote.

For heat pumps, you can also combine a loan with a Boiler Upgrade Scheme grant of up to £9,000. This grant does not need to be paid back.

How do you get a Warm Homes loan?

There are currently ten lenders signed up to the scheme, and the Government expects more to join as the scheme develops. You can see the full list on the Government website.

We’ve partnered with Selina Finance, one of the ten lenders. If you’re eligible for a Warm Homes loan, it will appear as a payment option in your Sopoco quote. You click through to the Selina portal, where Selina carries out the credit checks.

Some lenders will only work with specific installers, while others let you choose any MCS-certified installer. Be sure to compare offers carefully; look at the total amount you will repay, the length of the loan and any monthly fees – not just the interest rate.

How much could you save?

There are two savings to think about: the cost of the loan itself, and the cost of your energy.

• The loan itself. The Government’s example compares the scheme with a regular loan at 8% interest, but we are seeing lower rates than that. If you’re eligible for a loan, your Sopoco quote will show the Selina Finance rate and the full cost of the loan before you apply. Selina Finance’s website has a guide for homeowners
• On your energy bills. The Government says a heat pump, battery and solar panels together could save a family up to £550 a year, rising by a further £300 a year with a time-of-use tariff. Our own figures show that with solar panels and battery storage, you can save up to £1,000 a year

A time-of-use tariff charges different prices at different times of day, so a battery lets you store cheaper electricity and use it when prices rise.

Your overall savings will depend on your home, your roof, how much energy you use and the system you choose. We will give you tailored figures for your home and energy needs when we quote.

How to apply for a Warm Homes Loan

1. Decide which upgrades suit your home, e.g. solar panels, a battery, a heat pump
2. Get a selection of quotes from MCS-certified installers – if you’re choosing solar, talk to us
3. Check the payment options in each quote – with a Sopoco quote, you can click through to Selina Finance to apply Selina Finance
4. Keep all your records after approval, including your quote, finance agreement, invoice, proof of purchase and MCS certificate
5. Make the most of your home energy upgrades – our blog on how to get the best from your solar investment has helpful tips and advice

What this means for Sussex homeowners

The scheme is UK-wide, so you can apply now. For many people, the initial cost was the main reason not to install solar panels or a battery. The Warm Homes Loan Scheme removes that cost and makes the borrowing cheaper. 

Warm Homes Loan Scheme FAQs

• Is the Warm Homes Loan Scheme a grant?

No. It is a loan, and you must pay it back. But the interest is lower than on most regular loans, and some lenders charge no interest. The Warm Homes: Local Grant scheme is available to help low-income households make their homes more energy-efficient.

• Can I get a loan for battery storage only?

Yes. Battery storage is one of the upgrades the scheme covers, so you can use a loan for a battery on its own. This includes a battery for a home that already has solar panels.

• Who do I apply to?

You apply to a participating lender – the Government website has a list of confirmed lenders. Each lender sets its own rates and terms. If you choose us for your solar installation, you apply to Selina Finance directly from your quote.

*Some lenders specify that you must have a mortgage – if you own your home outright, you will not be eligible.