Solar panels, batteries and heat pumps can be the keys to unlocking significant energy bill savings. The government estimates that a heat pump, solar panels and a battery together could cut energy bills by up to £550 a year, with a further £300 possible from a judiciously chosen time-of-use tariff. But of course many householders are put off by the upfront cost of these green technologies. If only cheap finance was available…

The government-backed Warm Homes Loan Scheme is now here, launched on 27 October 2026. It offers no- and low-interest loans through banks and other lenders, so you can spread the cost of green tech over several years rather than paying up front.

Solar panels and batteries can each be supported up to £15,000; air-to-water heat pumps up to £20,000; and ground-source heat pumps up to £35,000. The government says lenders have cut interest rates by up to 5% compared with regular loans, with up to 30 years to repay. Many loans will not be interest-free.

Some early deals show what that looks like for solar. Good Energy says it will offer finance for solar panels and batteries from 4.9% APR over five to ten years, or 6.9% APR over 15 years. Sunsave says it is offering low- or zero-interest borrowing for solar and batteries. Energy suppliers including British Gas and E.ON have partnered with lenders such as Homeserve, Tandem Bank and The Money Co-op.

There is no income threshold, but lenders will check you can afford the repayments. It is still a loan, so be careful to compare total repayment costs and get several quotes before you sign up.

Your installer must be MCS certified for you to qualify for the loan. You can find them here https://mcscertified.com/find-an-installer/.

Not sure on which technologies are worth investing in for your home? We offer a retrofit advice service funded by the Energy Industry Voluntary Redress scheme. Get in touch with our expert team for tailored, impartial advice on the best approach to retrofitting you home to reduce costs and carbon, and make your home fit for the future.