Warm Homes Loan Scheme
The Warm Homes Loan Scheme helps eligible homeowners and private landlords access more affordable finance for eligible home energy improvements, including heat pumps, solar panels and battery storage.
Government support that brings the interest rate down
The Warm Homes Loan Scheme is a UK Government initiative that lowers the interest rate on loans for eligible home renewables. The Government pays participating lenders to reduce the rate; you borrow at the lower rate. There is nothing to claim and nothing to apply for separately — it is built into the finance.
It is not a grant. You borrow and repay as normal. Grants such as the Boiler Upgrade Scheme voucher or a Home Energy Scotland grant can still be used alongside it.
Who can apply?
Homeowners of existing homes in England, Scotland and Wales, and private landlords for properties they let. Northern Ireland is not included. Businesses cannot apply — it is personal lending only.
Protections included
MCS-certified installation, independently validated performance estimates, and a regulated credit agreement through a panel of lenders.
Eligible measures under the scheme
For owner-occupiers and private landlords of existing homes. Caps apply to each measure separately, so a solar and battery install can finance up to £30,000.
Solar PV
Loan cap of £15,000, including installation work and necessary ancillaries such as scaffolding, inverters and grid connection.
Battery storage
Loan cap of £15,000, on its own or with solar PV, including integration and control systems.
Air source heat pumps
Loan cap of £20,000 before any grant is deducted. BUS or Home Energy Scotland support can be stacked on top.
Covered in phase one
Not covered in phase one
Scheme rates and monthly examples
Every scheme term comes in two versions: start repaying straight away, or pay nothing for four months. Monthly figures below are for a £10,000 loan.
| Term | Start repaying straight away | Nothing to pay for 4 months |
|---|---|---|
| 60 months | 4.6% APR£186.46 a month | 4.9% APRThen five years of repayments |
| 120 months | 4.6% APR£103.67 a month | 4.9% APRThen ten years of repayments |
| 180 months | 6.9% APR£88.16 a month | 6.9% APRThen fifteen years of repayments |
Representative example: borrow £10,000 over 120 months at 4.6% APR representative (4.51% fixed). 120 monthly payments of £103.67. Total amount repayable £12,440.40. With the four month deferred option, interest accrues from the day the loan starts and exact figures are shown before you sign. Finance is subject to status. Rates are set by the panel of lenders and may change.
Nothing to pay for four months
Available on every scheme term. From the day the satisfaction note is signed, no repayment is collected for four months. Interest accrues from day one — it is not free or interest free.
Satisfaction note signed
The install is complete, you are happy and the loan starts. Nothing is collected.
Months one to four
No repayment leaves your account while your new system is already up and running.
Month five
Your first monthly payment is collected four months after the satisfaction note.
Full loan term
60, 120 or 180 monthly payments, fixed for the life of the loan. Overpayments welcome, no penalties.
Questions customers ask
Is the Warm Homes Loan Scheme a grant?
No. It is a loan at a reduced rate. You borrow and repay as normal. Grants such as the Boiler Upgrade Scheme can still be used alongside it.
Is it interest free?
No. The scheme rate is 4.6% APR on 60 and 120 month terms, 4.9% APR with nothing to pay for four months, and 6.9% APR on 180 months, against standard rates of 8.9% or 9.9% APR.
Who can apply?
Homeowners of existing homes in England, Scotland and Wales, and private landlords for properties they let. Northern Ireland is not in the scheme. Businesses and limited companies cannot apply; it is personal lending only.
What are the loan caps?
Per measure: £15,000 for solar PV, £15,000 for battery storage, £20,000 for an air source heat pump. Caps apply to each measure separately, so a solar and battery install can finance up to £30,000. If a system costs more than the cap, you pay the difference as a deposit.
Do I need an EPC or a minimum income?
No. The scheme sets no EPC requirement, no income threshold and no property type restriction. Lenders may apply their own criteria as part of their normal checks.
Can I use a Boiler Upgrade Scheme voucher as well?
Yes. For a heat pump in England and Wales the BUS voucher is taken off the cost before the loan is calculated. In Scotland, Home Energy Scotland grants work the same way.
How does “nothing to pay for four months” work?
You make no repayment for four months from the day the satisfaction note is signed. The first monthly payment is collected four months later and the loan then runs its full term. Interest accrues from the day the loan starts, so a deferred loan costs more over its term than one that starts repaying straight away.
Can I overpay or settle early?
Yes. Overpayments are accepted at any time with no penalty. Interest is calculated daily, so you stay in control of the interest you pay.
Will it cut my energy bills?
A well-designed system should reduce what you buy from the grid, but savings depend on the property, the technology, how it is used and energy prices. Savings cannot be guaranteed and must not be assumed to cover the loan repayments. Your repayments are fixed; your savings will vary.
Can approval be guaranteed?
No. Approval is a lender decision based on creditworthiness and affordability checks. Nobody can guarantee approval.
Ready to explore Warm Homes Loan finance?
Speak to Bloxt Energy about solar, battery storage or an air source heat pump with Government-supported finance options, subject to status.
This product is supported by the Warm Homes Loan Scheme. Finance is subject to status and provided by a panel of lenders. The government does not provide the loans directly. Terms, rates and eligibility are set by the scheme and the panel of lenders and may change. Information correct at the time of publication. For official scheme information visit gov.uk/warm-homes-loan-scheme.