Warm Homes Loan Scheme: What today’s budget means for installers
Today’s budget confirmed the next stage of the government’s Warm Homes Plan: The Warm Homes Loan Scheme, a £300m fund to provide no- or low-interest loans for solar PV, batteries, and heat pumps. Here’s what has changed, what it means for your business, and how to get ready for the rise in homeowner demand.
What the budget confirmed
- Funding: The Warm Homes Loan Scheme provides £300m of grant to approved lenders, so they can cut their loan rates by up to 5 percentage points (never below 0%).
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- The grant goes to the lender, not the homeowner. The homeowner borrows and repays the full cost at a lower rate.
- Loans must be 3 years or more. Solar PV and batteries are each capped at £15,000.
- The government has published a list of approved lenders. View the full list of approved lenders here.
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- Solar and batteries: Homeowners can use a Warm Homes Loan Scheme loan for new rooftop solar PV (including adding to an existing system) and battery storage, on its own or paired with solar. Each is capped at £15,000. EV chargers are only eligible when installed alongside solar or a battery. Rates will depend on the lender.
- Heat pumps: In England and Wales, the £7,500 Boiler Upgrade Scheme grant continues, and homeowners can use a Warm Homes Loan Scheme loan alongside it to cover the remaining cost, or to fund the whole installation. Loan caps (before the grant is deducted) are £20,000 for air-to-water and £35,000 for ground source heat pumps. Air-to-air heat pumps are not currently eligible, as they can’t yet meet MCS certification.
- Who’s eligible: Homes anywhere in the UK. The lender checks the property, the homeowner’s tenure, and whether they can afford the loan. The loan can’t be combined with other public funding for the same measure, except for the Boiler Upgrade Scheme or the Home Energy Scotland heat pump grant. Low-income households may qualify for free upgrades through separate schemes.
- Timing: Loans will be available through approved lenders. Funding is first come, first served.
- Installer requirements: You must be MCS-certified for each technology you install (for example, solar PV and battery storage are certified separately), using MCS-certified products. Completed jobs must be registered on the MCS Installation Database, and lenders will check your certification at the quote stage and after installation.
What this means for installers
More enquiries. Lower upfront costs bring homeowners who have been waiting on the sidelines into the market. Expect enquiries to rise as approved lenders start offering the scheme.
Better-informed customers. Homeowners will have read the headlines. Be ready for questions like: Am I eligible? What will I get? How much will I pay? How long will it take?
Speed will win jobs. When demand rises, the installer who sends a clear, accurate quote first is usually the one who gets the work.
How to get ready now
- Check your accreditation. Make sure you meet the installer requirements for the scheme. You must be MCS-Certified for each technology installed, using MCS-certified products.
- Plan your stock. Talk to your Segen Sales Manager about likely demand for solar, batteries, and inverters, so you’re not waiting on kit when orders arrive.
- Speed up your quoting. Renewables Studio, Segen’s new design and quoting platform, helps you design a system and produce a professional quote in minutes.
- Brief your team. Make sure everyone who talks to customers can explain the scheme in simple terms.
Stay up to date!
We’ll keep this page updated as more detail is released, and we’ll share further news on how Segen can support you and your customers in the coming weeks.
Open an Account Today | or talk to your Segen Sales Manager
Last updated: 28th October 2026
