Government launches low-interest loan scheme for green home upgrades

Summarised from 3 outlets · Updated 28 Oct, 13:16 · Archive

The UK government has launched the Warm Home Loans scheme, offering interest-free or low-interest loans to help households afford green energy upgrades. The scheme, which launched on Tuesday, provides loans ranging from £7,500 to £35,000 depending on the technology being installed.

Energy suppliers including British Gas and E.On have partnered with lenders such as Tandem Bank, Homeserve and The Money Co-op to offer the loans directly to customers at reduced rates compared with high street lenders. Where interest is charged, the government states it has negotiated rates up to 5 per cent lower than regular bank loans. Repayment periods can extend up to 30 years in some cases.

The loans cover various green technologies at different thresholds. Air-to-water heat pumps qualify for loans up to £20,000, air-to-air heat pumps up to £10,000, and ground-source heat pumps up to £35,000. Solar panels and storage batteries can each be financed up to £15,000. Homeowners installing heat pumps may also be eligible for government grants of up to £9,000 under the existing Boiler Upgrade Scheme.

According to the government, installing a heat pump, battery and solar panels together could save households up to £550 annually on energy bills, rising to £850 with a time-of-use tariff. The scheme was launched ahead of Chancellor John Healey's first Budget announcement. The government noted strong recent demand for these technologies, citing almost 150,000 solar panel installations in the first six months of the year and record heat pump sales in 2025.

How it is being reported

• UK homeowners can get interest-free or cheap loans for solar or heat pumps'Warm Homes Loan Scheme' provides interest-free or low-interest loans with as long as 30 years to repay.TechRadar · 28 Oct, 13:09
• Low-interest loans for heat pumps now available – how to applyA new government-backed, low-interest loan scheme has been launched ahead of the BudgetThe i Paper · 27 Oct, 18:56
• Homes across UK to get low- or no-interest loans to fund solar panels and heat pumpsGovernment-backed Warm Home Loans scheme to help households cut energy bills by hundreds of pounds Households across the UK can now cut their energy bills by hundreds of pounds a year at no upfront cost by applying for interest-free or “low-interest” loans to fund upgrades such as heat pumps, batteries and solar panels. The government-backed Warm Home Loans scheme, which launched on Tuesday, could mean thousands more households are able to access low-carbon energy alternative technologies, thanks to loans ranging from £7,500 to up £35,000. Continue reading...The Guardian · 27 Oct, 17:28

In this story: UK government · British Gas · E.On · Tandem Bank · Homeserve · The Money Co-op · John Healey

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log