What is the Warm Homes Plan and am I eligible for funding?
Who qualifies for grants, and how do you access new lower-interest loans?
In January 2026, the government announced the landmark £15 billion ‘Warm Homes Plan’. Labelled the biggest public investment in home upgrades in British history, this long-awaited plan aims to secure UK energy independence, tackle the climate crisis and cut energy bills for good.
Since then, the government has also launched its new Warm Homes Loan Scheme, making it easier for more households to afford solar panels, batteries and other energy-saving improvements.
In this article, we look into some of the headline announcements, explain who might benefit, and why waiting to make home improvements might not be the best idea for long-term savings.
What is the Warm Homes Plan?
The Warm Homes Plan is an ambitious commitment from the UK Government to help more families cut their energy bills through funding for solar panels, batteries, heat pumps and insulation.
Originally announced as a £15 billion investment package, the plan includes grants, government-backed finance and support through the Warm Homes Fund. The government aims to support upgrades to 5 million properties by 2030.
The targets the government hope to achieve by 2030 include:
- Installing solar panels on an additional 3 million homes.
- Achieving 450,000+ heat pump installations per year by 2030.
- Supporting 180,000 additional jobs.
- Lifting up to one million families out of fuel poverty.
Am I eligible for Warm Homes Plan grant support?
Not every household will be eligible for a Warm Homes grant, and the support available depends on your circumstances and the type of home improvements you’re considering.
Some grants are focused on helping lower-income households, while others are available more widely. These include:
- Warm Homes: Social Housing Fund and Warm Homes: Local Grant, which support energy-saving improvements for eligible lower-income households, delivered through local authorities and social housing providers.
- The Boiler Upgrade Scheme (BUS), which provides grants towards the cost of installing an eligible heat pump. Unlike the other schemes, it’s not means-tested, so homeowners can qualify regardless of their income, provided their property meets the eligibility criteria.
If you’re not eligible for grant support, you may still be able to access low-interest finance through the new Warm Homes Loan Scheme.
What is the Warm Homes Loan Scheme?
Launched in October 2026, the Warm Homes Loan Scheme offers government-backed, low- and zero-interest loans to help homeowners spread the cost of energy-saving improvements, including solar panels, batteries and heat pumps.
The government is helping to reduce interest rates by up to five percentage points, making borrowing more affordable. The interest rate you’re offered, how much you can borrow and whether you’re eligible will depend on your chosen lender and their lending criteria.
How can I start saving now?
With millions of homes targeted for upgrades by 2030, the Warm Homes scheme is expected to encourage more households to invest in solar panels and other energy-saving technologies.
And with government-backed finance now available, you might not need to wait until you’ve saved enough to pay for solar panels outright.
Crucially, acting now doesn’t mean missing out later. Solar panels and batteries installed today could also benefit from future smart tariffs, export pricing and market reforms as they’re introduced.
This means you can start reducing your electricity bills sooner, while becoming less reliant on electricity bought from the grid.
How much can you save with solar panels?
A typical 10-panel, 4.75kWp domestic solar system can deliver up to £853 per year* in long-term savings and export earnings. You can increase those savings even further by adding a battery and making the most of our export tariffs:
- Up to £853 per year* with 10 solar panels, by using your electricity at home and exporting excess power on our standard 12p/kWh Solar Savings export tariff.
- Save even more with a battery, which lets you store excess solar electricity to use later, reducing the amount of electricity you need to buy from the grid.
- Unlock our highest export rate when you install both solar panels and a battery with Good Energy, giving you access to our 25p/kWh Solar Savings Exclusive export tariff for your first 12 months**.
Steve’s story
✅ 5kW solar panels
✅ 13.5 kWh Tesla Powerwall
📊 Expected annual savings: £1,945
“Our installation took place in the winter, and from the very first month our solar panels and battery have covered most of what we are using at home.” Steve, Dorset
It’s brilliant to see the government placing green technologies at the heart of lowering British energy bills for good. The Warm Homes Plan sets a clear direction of travel and aims to help millions of households over the coming years.
For homeowners who are able to act now, the sooner you install solar panels, the sooner you can start saving. And with government-backed lower-interest loans available, you might not need to cover the full cost upfront.
Alternatively, you can call us on 0345 034 0755. Our experts are available 8am to 5pm Monday and 9am to 5pm Tuesday to Friday.
* Total annual bill savings are based on average generation data from 150 Good Energy solar installations completed between 2018 and 2025, with an average size of 4.75kWp (10 panels). System estimated to generate 5,035kWh per year, of which 1762.25kWh is used at home, reducing electricity bought from the grid, and 3,272kWh exported at 12p/kWh through Good Energy’s Solar Savings tariff. Actual savings may vary depending on system size, tariff rates and household electricity use. Solar packages start from £6,930, including installation (Oct 2026). Price varies by property and system specification. For full calculations, visit http://www.goodenergy.co.uk/solar-earnings.
** Solar Savings is a variable tariff, so the rates are subject to change. Solar Savings Exclusive is a 12-month export tariff available when you install solar panels and a battery with Good Energy. While the rate is subject to change to new customers, once your term begins the price is fixed for 12 months. After this time you will roll onto our standard export tariff.
