Is the Warm Homes Loan free money?

No. It is repayable finance with a government-reduced interest rate, not a grant. You repay from your bill savings. Genuinely free measures come via the Warm Homes: Local Grant for eligible low-income households.

When can I apply for a Warm Homes Loan?

Lenders onboard from August 2026 and consumer products are expected from September 2026. The first lender application window closed on 17 July 2026; a second opens late 2026.

Can private landlords use it?

Yes, on a personal lending basis. Landlords face growing energy-efficiency expectations in the private rented sector, making this a useful route.

Warm Homes Loan Scheme

The Warm Homes Loan Scheme (WHLS) is the finance arm of the government's Warm Homes Plan. Rather than handing out grants, it backs approved lenders so they can offer cheaper loans for solar panels, batteries and heat pumps — helping households who can afford repayments but lack upfront cash. Consumer products are expected from September 2026. This guide explains who qualifies, what you can borrow, and how it works with the Boiler Upgrade Scheme.

Last reviewed: August 2026Sources: DESNZ — Warm Homes Loan Scheme Scheme Rules (June 2026) · GOV.UK — Warm Homes Plan · Energy Efficiency Association

How the scheme works

WHLS is government-supported but lender-led. Participating FCA-authorised lenders design the loan products; the government uses up to £300 million of grant capital to reduce the interest rate passed on to borrowers. You still go through normal credit and affordability checks — there is no universal fixed rate, and approval is not guaranteed. Lenders onboard from August 2026, with the first consumer products expected in September 2026. The scheme runs to 31 March 2030.

Who can apply

Owner-occupiers of existing homes and private rented sector landlords (on a personal lending basis). The scheme sets no income-based eligibility threshold and no minimum EPC requirement at scheme level. Lenders still run their own creditworthiness and affordability assessments and may ask for an EPC. It is aimed at households that don't qualify for grant funding but want to invest in low-carbon upgrades — the 'able to borrow' segment.

What you can borrow (loan caps)

Loan caps per technology (before any Boiler Upgrade Scheme grant is deducted): Solar PV £15,000; electrical storage battery £15,000; air-to-water heat pump £20,000; ground source heat pump £35,000; biomass boiler (rural only) £20,000; air-to-air heat pump £10,000 but not yet an eligible measure. EV chargepoints are only eligible as part of a solar/battery install, via an OZEV-approved installer. Insulation is not currently eligible for WHLS loan funding.

Combine with the Boiler Upgrade Scheme

If you install an eligible heat pump, you can pair a WHLS loan with the Boiler Upgrade Scheme (BUS) grant (£7,500 for air-source from July 2026). The loan caps above are stated before the BUS grant is deducted, so the grant effectively reduces what you borrow. Installations must be carried out by MCS-certified installers.

For installers

To deliver WHLS-financed work you need MCS certification; no extra PAS or TrustMark accreditation beyond existing requirements. Contractors who introduce customers to finance products need the appropriate FCA authorisation for regulated activities. The forthcoming Home Energy Advice Service is expected to become the main independent source of advice on the right technology and funding route.

FAQs

Is the Warm Homes Loan free money?: No. It is repayable finance with a government-reduced interest rate, not a grant. You repay from your bill savings. Genuinely free measures come via the Warm Homes: Local Grant for eligible low-income households.
When can I apply for a Warm Homes Loan?: Lenders onboard from August 2026 and consumer products are expected from September 2026. The first lender application window closed on 17 July 2026; a second opens late 2026.
Can private landlords use it?: Yes, on a personal lending basis. Landlords face growing energy-efficiency expectations in the private rented sector, making this a useful route.