Warm Homes Loan Scheme: Making Solar More Affordable

For most homeowners, the biggest thing standing between them and a set of solar panels has never been the roof, the weather or the technology. It has been the upfront cost. This week, that changed.

On 27 October 2026 the government launched the Warm Homes Loan Scheme, offering interest-free and low-interest loans for solar panels, battery storage and heat pumps. It means households across Nottinghamshire, Derbyshire and Yorkshire can now spread the cost of going solar over several years, rather than finding thousands of pounds in one go.

The scheme is brand new, and lenders are still rolling out their products, so some of the finer detail is yet to settle. But here is what we know so far, what it could mean for your home, and what you can do right now.

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What is the Warm Homes Loan Scheme?

The Warm Homes Loan Scheme is a government-backed finance scheme that makes borrowing for clean energy upgrades cheaper. Importantly, it is a loan, not a grant, and the money does not come directly from the government.

Instead, the government gives a grant to approved banks, credit unions and specialist lenders. They pass that saving on to you as a lower interest rate, with reductions of up to five percentage points. Some of the first products on offer are completely interest-free.

Here is what has been confirmed so far:

• Up to £15,000 for solar panels. A separate limit of up to £15,000 applies to battery storage, so you may be able to finance panels and a battery together.
• Ten lenders at launch. These are HomeServe Finance, Hometree Finance, The Money Co-op, Propensio, Secure Trust Bank, Selina Finance, South Manchester Credit Union, Sunsave Energy, Tandem Bank and This Bank. More are expected to join.
• Long repayment terms. Some products allow repayments over as long as 30 years.
• No income threshold. The scheme is open to homeowners (with or without a mortgage) and private landlords across the UK, subject to the lender's usual credit and affordability checks.
• MCS-certified installers only. Your installation must be carried out by an MCS-certified installer using MCS-certified products. DIY installs are not eligible.
• No government application form. You apply through a participating lender, or through your installer where they offer it.

The government has put £300 million of grant funding behind the scheme, which is expected to support around 100,000 homes in its first phase.

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Part of the Wider Warm Homes Plan

The loan scheme sits within the government's £15 billion Warm Homes Plan, its long-term programme to cut energy bills, reduce carbon emissions and tackle fuel poverty.

It works alongside other support rather than replacing it. Homeowners fitting a heat pump can combine a Warm Homes Loan with a Boiler Upgrade Scheme grant of up to £9,000. Households on lower incomes may instead qualify for free or subsidised upgrades through the Warm Homes: Local Grant, which is delivered by councils in England.

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How The Scheme Makes Solar Panels More Affordable

Until now, going solar has usually meant either dipping into savings or taking out standard finance at a fairly high interest rate. The Warm Homes Loan Scheme tackles both problems.

The government's own example shows the difference. Borrow £10,000 over seven years at a typical 8% rate and you would pay around £155 a month. Through the scheme, the government says that cost could fall by as much as £285 a year. With an interest-free product, the saving is bigger still.

Then there are the energy savings themselves. The government estimates that combining solar panels, a battery and a heat pump could cut a household's energy bills by up to £550 a year, with up to £300 more possible on a time-of-use tariff. For some homes, cheaper and longer-term borrowing means the savings on their bills could cover a good share of the monthly repayments.

Every home is different, of course. Your savings will depend on the size of your system, your roof, how much electricity you use during the day and how much you export to the grid. That is why an accurate survey and quote matter. Find out more about our solar panel installations.

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What It Means For Homes in Nottinghamshire, Derbyshire and Yorkshire

There is a common myth that solar panels are only worth it in the south of England. In reality, panels generate electricity from daylight, not heat, and homes right across the East Midlands and Yorkshire produce plenty of power, especially through the long spring and summer days.

Our region is also full of the kind of homes that suit solar well. Think of the semis and terraces of Worksop, Rotherham and Barnsley, the family homes in market towns like Mansfield, Chesterfield and Doncaster, and the rural villages across Bassetlaw and North Derbyshire, many of them off the gas grid and paying higher heating costs.

For many local families, solar has felt out of reach simply because of the upfront price. The Warm Homes Loan Scheme opens the door to households who could see the long-term benefit but could not put £10,000 or more on the table in one go. And with no income threshold, it is not limited to one type of household.

As a local installer, we have been talking to homeowners across all three counties for years about cutting their energy bills. This scheme is one of the most significant changes we have seen to making solar genuinely affordable.

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What We Are Still Waiting To Find Out

The scheme only went live this week, so some details are still emerging. We are keeping a close eye on:

• Interest rates and terms. Each lender sets its own rate and repayment period, and not all products will be interest-free. Full product details are still being published.
• Which installers each lender works with. Some lenders let you choose any MCS-certified installer, while others work with selected partners only.
• New lenders joining. More banks, credit unions and mortgage providers are expected to come on board as the scheme develops.
• How quickly applications are processed once demand picks up.

We will keep you informed as more information becomes available.

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What You Can Do Now

You do not need to wait for every detail to be confirmed to start planning. Lenders will need a quote from an MCS-certified installer before they can approve a loan, so the survey comes first.

1. Get a survey and quote. We will look at your roof, your energy use and your goals, and give you a clear, itemised quote with an estimate of what your system could generate.
2. Think about a battery. Adding storage lets you use more of your own solar power in the evening, and it can be financed under its own £15,000 limit.
3. Compare your finance options. Look at the interest rate, monthly repayment, loan length and total amount repayable, not just the headline figure.
4. Apply through a participating lender once you are happy with your quote.

As an MCS-certified installer working across Nottinghamshire, Derbyshire and Yorkshire, SCE can help you understand your options and get your project ready for the Warm Homes Loan Scheme.

Explore our solar panel installation services or get in touch with our team to book your free survey.