Warm Homes Loan Scheme: 0% and Low-Interest Solar and Battery Loans Explained

Updated 4 November 2026. The government’s Warm Homes Loan Scheme launched on 27 October 2026. This page explains what it is, who can use it, what it covers and how it works with a DES Renewable Energy installation in Dorset, Hampshire and Wiltshire. We will keep it updated as lenders publish their rates.

What the Warm Homes Loan Scheme is

It is a government-backed loan scheme for homeowners who want to install solar panels, battery storage, heat pumps and a few other low-carbon technologies without paying the full cost up front. The Treasury partly backs the loans, which lets the participating lenders offer interest rates up to five percentage points lower than their normal rates. Some loans, particularly for solar and batteries, are being offered at 0%.

You do not apply to the government. You apply to one of the approved lenders, either directly, through your mortgage provider, or through an installer like us when you arrange your quote.

What you can borrow

The maximum loan supported for each technology is:

• Solar panels: up to £15,000
• Battery storage: up to £15,000
• Air-to-water heat pump: up to £20,000
• Air-to-air heat pump: up to £10,000
• Ground source heat pump: up to £35,000
• Heat network connection: up to £7,500
• Other micro-renewables (such as a domestic wind turbine): up to £20,000

You can borrow for more than one improvement at once, so a solar and battery system can be funded together. Loans run for a minimum of three years and, with some lenders, up to 30 years. The government’s own example: borrowing £10,000 over seven years at 8% costs around £155 a month today; through the scheme the same loan could save up to £285 a year in repayments.

Who is eligible

• You must own the property, with or without a mortgage.
• The property must be in the UK and residential, not commercial.
• The work must be done by an MCS-certified installer. DES Renewable Energy is MCS-certified, so our installations qualify.
• You will need to pass the lender’s normal credit and affordability checks, and each lender may add its own rules.

If you are on a low income you may be able to get solar or insulation free through the Warm Homes: Local Grant instead. You cannot use a Warm Homes loan and another government grant for the same improvement, but you can combine a loan with the Boiler Upgrade Scheme grant for a heat pump.

Who the lenders are

Ten lenders are in the first wave: HomeServe Finance (with E.ON), Hometree Finance, The Money Co-op, Propensio, Secure Trust Bank, Selina Finance, South Manchester Credit Union, Sunsave Energy, Tandem Bank and This Bank. The government says more lenders and products will join as the scheme develops.

DES Renewable Energy is an Introducer Appointed Representative of Hometree Finance, which is one of the ten approved lenders. When you ask us for a quote, tell us you are interested in a Warm Homes loan and we will tell you which products are available for your system at that time.

What to watch out for

A cheap loan is only a good deal if the system is priced fairly and sized properly. A few honest points:

• Rates are not all 0%. Each lender sets its own rate and term. Ask for the APR and the total amount repayable, not just the monthly figure.
• Long terms cost more overall. A 20- or 30-year loan has a low monthly payment but a much higher total cost. Match the term to the life of the equipment: panels last 25 years or more, batteries typically 10 to 15.
• Some loans are secured on your home. Check whether the product is a personal loan or a second-charge mortgage before you sign.
• Compare the installed price, not just the finance. If a 0% deal comes with a system priced well above the market, you are paying the interest in the price. Get at least two quotes.
• Beware of scams. Nobody from the government will cold-call you about a Warm Homes loan. The loan product will say it is funded through the Warm Homes Loan Scheme, and the lender will be on the GOV.UK list.

How it works with a DES installation

1. We survey your roof and your bills and design a system around your usage, with a written quote and realistic savings figures.
2. We talk you through the ways to pay: outright, our existing finance, or a Warm Homes loan where one is available for your system.
3. You apply to the lender. They run their credit and affordability checks and confirm the rate and term.
4. We install the system to MCS standards and issue your MCS certificate, which you keep with your finance paperwork in case of a scheme audit.
5. You start saving from the day the system is switched on, and the Smart Export Guarantee pays you for what you export.

Residential solar and batteries are also still at 0% VAT until 31 March 2027, which stacks with the loan.

Frequently asked questions

Is this a grant or a loan?

A loan. You repay it, but at a lower interest rate than a normal personal loan, and in some cases interest-free. The free-of-charge schemes are the Warm Homes: Local Grant (low-income households) and the Boiler Upgrade Scheme (heat pumps).

Can landlords use it?

GOV.UK says you must own the property; it does not restrict the scheme to owner-occupiers. Individual lenders may have their own rules on rented property, so check with the lender.

Can I use it for a battery on its own?

Yes. Battery storage is a qualifying improvement in its own right, up to £15,000, and a battery alone can cut bills on a time-of-use tariff even without solar.

Do I have to use the lender’s installer?

Some lenders only work with their own partner installers; others let you choose any MCS-certified installer. If you want DES to do the work, tell us first and we will point you to the routes that allow it.

When can I apply?

The scheme is live and lenders are onboarding now. Rates and application details vary by lender and some products are still being finalised. We will update this page as they are published.

Get a quote and ask about the loan

If you are in Dorset, Hampshire or Wiltshire, request a free, no-obligation quote or call 01202 985 888 and ask about the Warm Homes Loan Scheme. We will give you the real figures for your home and tell you plainly whether a loan, our standard finance or buying outright works out best.

Sources: GOV.UK: Warm Homes Loan Scheme and the DESNZ factsheet, 27 October 2026.

DES Renewable Energy Limited (Financial Services Register No. 1003868) is an Introducer Appointed Representative of Hometree Finance, a trading name of HTG Finance Limited (Financial Services Register No. 825534), and of Phoenix Financial Consultants Limited (Financial Services Register No. 539195). Both are authorised and regulated by the Financial Conduct Authority. The lender providing your finance will be named on your credit agreement. All finance is subject to status and credit checks.