Homes across UK to get low- or no-interest loans to fund solar panels and heat pumps
News Source
•Tue, 27 Oct 2026 17:28:33 GMT
📰 What Happened
From Tuesday, UK households can apply for government-backed loans to pay for solar panels, batteries and heat pumps. The Warm Home Loans scheme offers £7,500 to £35,000 at no interest or low interest, so families pay nothing upfront.
British Gas and E.On are working with lenders Tandem Bank and Homeserve to offer the loans to their customers. Air-source heat pumps can get up to £10,000, and ground-source pumps up to £35,000.
The government says a heat pump, battery and solar panels together could cut bills by up to £550 a year. A tariff that charges less at quiet times could save another £300.
🔍 The Backstory
UK energy bills jumped after the gas crisis that began in 2021 and got worse when Russia invaded Ukraine. That pushed millions of homes into fuel poverty and made home upgrades more attractive.
The government already gives grants for heat pumps through its boiler upgrade scheme. But with a heat pump costing about £13,600, most families still faced a large bill.
The loans came the day before chancellor John Healey's first budget. Reports say that budget will cut hundreds of millions from the boiler grant scheme, which officials see as a subsidy mainly for richer homes.
🎯 Why It Matters
Paying thousands upfront is the main reason people skip insulation and heat pumps. Spreading the cost over years lets families on tighter budgets cut their bills too.
From Tuesday, UK households can apply for government-backed loans to pay for solar panels, batteries and heat pumps. The Warm Home Loans scheme offers £7,500 to £35,000 at no interest or low interest, so families pay nothing upfront.
British Gas and E.On are working with lenders Tandem Bank and Homeserve to offer the loans to their customers. Air-source heat pumps can get up to £10,000, and ground-source pumps up to £35,000.
The government says a heat pump, battery and solar panels together could cut bills by up to £550 a year. A tariff that charges less at quiet times could save another £300.
UK energy bills jumped after the gas crisis that began in 2021 and got worse when Russia invaded Ukraine. That pushed millions of homes into fuel poverty and made home upgrades more attractive.
The government already gives grants for heat pumps through its boiler upgrade scheme. But with a heat pump costing about £13,600, most families still faced a large bill.
The loans came the day before chancellor John Healey's first budget. Reports say that budget will cut hundreds of millions from the boiler grant scheme, which officials see as a subsidy mainly for richer homes.
Paying thousands upfront is the main reason people skip insulation and heat pumps. Spreading the cost over years lets families on tighter budgets cut their bills too.