Last updated 29th October 2026
The research is done. You can picture the solar panels on the roof and imagine a winter without wondering how much the next oil delivery will cost. Then you look at the installation quote.
Whether you’re eyeing up an air source heat pump, a ground source heat pump, solar panels or home battery storage, it’s a big investment.
Even when the benefits make sense, finding the money upfront isn’t always straightforward.
That is where the government’s Warm Homes Loan Scheme comes in. It is designed to help bridge that gap by making low-cost finance more accessible.
But with any new government initiative, it’s easy to get tangled in the details.
Let’s sit down with a cuppa and break down what the scheme is, what it covers, and how it might help you get your project off the ground.
What is the Warm Homes Loan Scheme?
The Warm Homes Loan Scheme is a government-backed initiative created to help households across the UK spread the cost of clean energy upgrades over time.
Rather than handing out direct cash grants for the whole project, the government works alongside participating, FCA-regulated lenders to lower borrowing costs. By providing financial backing to these lenders, the scheme aims to unlock access to no- and low-interest loans, reducing typical interest rates to make monthly repayments much more manageable than standard high street borrowing.
It’s worth noting up front: these are loans, not grants. They will need to be paid back, and lower energy bills won’t automatically cover the monthly repayments in full, so it’s always wise to look closely at your own budget before committing.
What technologies are covered and what are the borrowing limits?
The scheme supports a range of renewable technologies designed to cut your carbon footprint and energy bills.
To give you an idea of scope, the government set maximum supported borrowing limits for each technology.
Please keep in mind that these are borrowing limits set by the scheme rules – they are not installation price tags, nor do they represent a guaranteed loan offer.
Every home is different, and your actual quote will depend on your property’s specific layout and heating needs.
| Technology | Maximum Supported Borrowing Limit |
| Ground source heat pump | Up to £35,000 |
| Air-to-water source heat pump | Up to £20,000 |
| Air-to-air source heat pump | Up to £10,000 (when MCS certification is available) |
| Solar panels | Up to £15,000 |
| Electrical storage battery | Up to £15,000 |
Who is eligible for the Warm Homes Loan Scheme?
The Warm Homes Loan Scheme is available to eligible property owners across England, Scotland, Wales and Northern Ireland.
To apply, you must:
- Own the property, either outright or with a mortgage.
- Be applying for improvements to a residential property in the UK.
- Use the loan for eligible energy-saving improvements, such as a heat pump, solar panels or battery storage.
You can apply for funding towards more than one type of improvement, which could be useful if you’re considering installing solar panels and battery storage alongside a heat pump.
The installation must normally be carried out by an MCS-certified installer, such as IMS Heat Pumps.
Meeting these basic requirements doesn’t guarantee you’ll be offered a loan. Each participating lender has its own criteria, including credit and affordability checks.
You can read the full requirements on the government’s Warm Homes Loan Scheme eligibility page.
Does the scheme include Scotland?
Yes. The Warm Homes Loan Scheme covers the entire UK – including Scotland, England, Wales, and Northern Ireland. Whether your property is in Perthshire or down in the Midlands, homeowners across our regions can access the scheme.
How does it work alongside grants? (England, Wales, and Scotland)
It is very easy to confuse loans with grants, or to mix up the different rules depending on where you live in the UK. Let’s clear that up.
England and Wales
If you live in England or Wales, you may already have heard of the Boiler Upgrade Scheme (BUS).
- It’s a grant, not a loan: The BUS grant does not have to be repaid.
- It’s not means-tested: Your household income and personal savings do not affect your eligibility.
- Important details: Property and installation rules still apply (for instance, it does not fund the replacement of an existing low-carbon heating system like an already-installed heat pump). Not everyone automatically qualifies.
The good news? Official government guidance confirms that eligible Warm Homes loans can be used alongside a Boiler Upgrade Scheme grant. In simple terms: the grant reduces the overall installation cost, and a Warm Homes loan could help you spread the remaining balance.
You may be able to use a Warm Homes Loan alongside an eligible grant, but you cannot use the loan and other government funding to pay for the same improvement costs. For example, a BUS grant could cover part of an eligible heat pump installation, with a loan potentially helping to cover the remaining cost.
Scotland
The Boiler Upgrade Scheme does not apply in Scotland. Instead, Scottish homeowners have separate support structures available through Home Energy Scotland, which has its own unique criteria and funding paths. However, just like in England and Wales, eligible Scottish home energy grants can be paired alongside Warm Homes loans to help manage upfront costs.
Where can you get a Warm Homes Loan?
The Warm Homes Loan Scheme officially launched on 27 October 2026, with ten lenders initially participating.
Different lenders offer different products, interest rates and repayment terms, and further lenders and products are expected to join the scheme as it develops.
You can check the latest participating lenders and eligibility requirements on the official government website.
These include:
- HomeServe Finance
- Hometree Finance
- The Money Co-op
- Propensio
- Secure Trust Bank
- Selina Finance
- South Manchester Credit Union
- Sunsave Energy
- Tandem Bank
- This Bank
Not every lender will offer the same type of loan. Interest rates, repayment periods, eligibility requirements and the technologies covered may differ.
Can you choose your own installer?
This is an important question if you’ve already found an installer you’d like to work with.
Some lenders work with specific installation companies, while others allow you to choose your own MCS-certified installer.
If you’re considering an installation with IMS Heat Pumps, we’d recommend checking with your chosen lender whether they can finance a quotation from us before proceeding with an application.
How do you apply for a Warm Homes Loan?
If you’re thinking about installing a heat pump, solar panels or battery storage, it’s worth getting a clear idea of the installation costs before deciding how to fund your project.
Here’s how the process generally works.
1. Decide what improvements you’d like to make
Think about what you want to achieve, whether that’s replacing your heating system, generating your own electricity or storing more of the energy your solar panels produce.
2. Get an installation quotation
IMS can assess your property, discuss the options and provide a quotation for a suitable system. This gives you a clearer picture of the work involved and the likely cost.
3. Explore participating lenders
Check which lenders offer finance for your chosen technology and whether they’ll accept a quotation from your preferred installer.
Compare the interest rate, repayment period, monthly payments and total amount repayable before making a decision.
4. Apply directly to your chosen lender
You’ll need to complete the lender’s application process, including any eligibility, credit and affordability checks. Approval is not guaranteed.
5. Plan your installation
Once you’ve arranged your funding and agreed to proceed, we can work with you to plan the installation, subject to our availability and any relevant approvals.
Remember, you don’t have to use the Warm Homes Loan Scheme to work with us! We’re happy to discuss your installation requirements whether you’re considering a loan, using savings or exploring other available funding.
Weighing up energy savings versus repayments
A heat pump, solar panels or battery storage could help lower your energy bills. How much you save will depend on your home, the system and your energy tariff, and those savings won’t necessarily cover the loan repayments.
Before committing, compare the expected savings with the monthly repayments, and check the total amount you’ll repay over the full loan term. That will help you decide whether it fits comfortably within your household budget.
Frequently Asked Questions
Let’s talk about your project
Navigating grants, loans and heating designs can feel like a lot to juggle on your own. We’ve been designing and installing renewable heating systems since 1997, and we bring plenty of practical experience to every property we look at.
Whether you’re curious about switching to a heat pump or adding solar and battery storage to your home, we’re always happy to have an honest chat about what would suit your property best.
To talk through your options or get an installation quote tailored to your home, feel free to contact us today.
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Please note: IMS Heat Pumps is sharing this information to help customers understand the scheme. We are not FCA-regulated, do not offer or arrange these loans, and cannot provide financial advice or recommend a particular lender or finance product. Loan availability, interest rates and terms are set by participating lenders. Please contact them directly for details.