UK scheme offers low-cost loans for solar panels and heat pumps

The government-backed Warm Home Loans scheme has launched across the UK, offering households low- or no-interest finance for home energy upgrades including solar panels, batteries and heat pumps. It is intended to make these technologies more accessible by removing upfront costs, as energy bills remain high.

Loans range from £7,500 to £35,000, with energy suppliers and lenders offering them at discounted rates. The government estimates that combining a heat pump, battery and solar panels could save up to £550 a year, or £850 with a time-of-use tariff. The launch comes as heat pump grants may be reduced in the coming budget, though grants of up to £9,000 are expected to remain for some homes off the gas grid.