The UK government announced the Warm Homes Loan Scheme on 27 October, offering no- and low-interest loans to households across England, Scotland, Wales and Northern Ireland. The loans are designed to cover the upfront cost of clean energy technology such as heat pumps, batteries and solar panels, with repayments spread over many years.

According to the Department for Energy Security and Net Zero, installing a heat pump, battery and solar panels could help families save up to £550 a year on energy bills, rising by a further £300 a year with a time-of-use tariff. The government said it has worked with lenders to deliver an up-to-5 per cent reduction in interest rates compared with regular bank loans. Maximum loan amounts range from £7,500 for a heat network connection to £35,000 for a ground source heat pump, with solar panels and electrical storage batteries each supported up to £15,000. Ten lenders are initially participating, and homeowners may combine a loan with a grant of up to £9,000 through the Boiler Upgrade Scheme, or Home Energy Scotland in Scotland. All installations except heat network connections will be carried out by MCS-certified installers.