Free Loans for Solar Panels: The Warm Homes Plan Explained
Alongside grants for the poorest homes, the UK government’s Warm Homes Plan is set to offer interest-free and low-interest loans so middle-income households can install solar panels with nothing to pay upfront, and repay from the money they save on their bills.
Quick Answer
The Warm Homes Loan Scheme (WHLS) uses £300 million of government grant capital, within a wider £1.7 billion loans commitment under the £15bn Warm Homes Plan, to subsidise cheaper loans for solar panels, home batteries and heat pumps. The official Scheme Rules (June 2026) cap solar PV loans at £15,000 (plus £15,000 for battery storage), open the scheme to owner-occupiers and private landlords with no income thresholds, and require lenders to pass the subsidy on as a lower interest rate. The first lender window closed on 17 July 2026 and loans are expected to be available to the public from September 2026. In the meantime, short-term 0% APR supplier finance and low-APR green loans offer the same "pay nothing now, repay from savings" model today.
What loans does the Warm Homes Plan offer?
The Warm Homes Plan is a £15 billion government programme to upgrade up to 5 million homes by 2030. Most coverage focuses on the grants element, fully funded measures for low-income households on certain benefits. But the plan also sets out a second route for households who do not qualify for a grant: government-backed finance.
The published plan states the government will work with the finance industry to allocate up to £1.7 billion to new low and zero-interest consumer loans covering solar panels, home batteries and heat pump installations, with a further £300 million of government funding used to reduce the cost of those loans. For solar, that means a loan covering the install cost, repaid in monthly instalments that are designed to be lower than the savings the panels generate.
Delivery is underway through the Warm Homes Loan Scheme (WHLS). The official Scheme Rules, published by DESNZ in June 2026, confirm the loans will be offered through participating FCA-authorised banks and lenders rather than a government portal. The first lender application window closed on 17 July 2026, product approval runs through July and August, and loans are expected to be available to the public from September 2026, with a second lender window in late 2026 for onboarding in early 2027. The published loan caps are £15,000 for solar PV and £15,000 for battery storage (standalone or paired with solar), with heat pumps capped at £20,000–£35,000 depending on type.
Two routes under one plan
- Grants, fully funded solar for eligible low-income households via the Warm Homes: Local Grant (delivered by your council).
- Loans, interest-free or low-interest finance for “able to pay” households, so you spread the cost with £0 upfront and repay from bill savings.
Loan caps and eligibility are now published in the Scheme Rules. The remaining unknown is pricing: lenders set their own APRs (the subsidy must reduce the rate, and applies to terms of 3 years and longer), so actual rates will be visible when the first WHLS products launch. We update this page as detail is confirmed; the full breakdown is in our September 2026 launch analysis.
How the “repay from savings” model works
The principle behind a Warm Homes loan, and the 0% finance already offered by installers, is simple: your monthly repayment is set lower than the amount solar knocks off your energy bill. So from the first month, you are cash-flow positive. You never pay out of pocket; the panels effectively pay for themselves.
Step 1
Install solar with £0 upfront, the loan covers the full cost.
Step 2
Your bill falls. Self-use savings plus SEG export payments add up each month.
Step 3
Repay the loan from those savings. Once it's cleared, the savings are all yours.
Because you own the panels from day one, this is fundamentally different from the old rent-a-roof “free solar” schemes, where a company kept the panels and the income. Here, the asset, the electricity, and the export earnings are all yours.
Loan vs grant vs 0% finance: what’s the difference?
There are three ways to get solar for little or no upfront cost in the UK. Which one fits depends mostly on your income and benefits.
| Feature | Warm Homes Grant | Warm Homes Loan | 0% Installer Finance |
|---|---|---|---|
| Upfront cost | £0 | £0 | £0 |
| Do you repay? | No, fully funded | Yes, from bill savings | Yes, from bill savings |
| Interest | None | Interest-free or low | 0% APR (typical) |
| Who it's for | Low income / on benefits, EPC D–G | “Able to pay” households | Any homeowner (credit check) |
| You own panels? | Yes | Yes | Yes |
| Available now? | Yes (via council) | Expected September 2026 | Yes, today |
If you receive qualifying benefits and your home is EPC D or below, aim for the grant first, it is free money. If you do not qualify for a grant, a loan or 0% finance gives you the same £0-upfront outcome with affordable repayments.
Who qualifies for a Warm Homes Plan loan?
Loans are aimed squarely at the households that fall outside the grant criteria, the “able to pay” middle. The published Scheme Rules confirm the loan route is far broader than the grant route: owner-occupiers and private landlords qualify, with no income-based thresholds, no minimum EPC requirement and no property-type restrictions at scheme level. Lenders run standard credit and affordability checks, and every install must use an MCS-certified installer:
Likely to suit a loan
- Working households not on means-tested benefits
- Homes already EPC C or above (excluded from grants)
- Owner-occupiers who can pass an affordability check
- Anyone who wants a larger system or a battery
Likely to suit a grant
- On Universal Credit, Pension Credit, ESA, JSA, etc.
- Household income below the local threshold
- Property rated EPC D, E, F, or G
- Referred by your local council or energy supplier
Not sure which route is yours? Use our free solar eligibility checker to see whether you fit the grant, loan, or finance route.
Worked example: £8,000 system on an interest-free loan
Here is how a typical 4–5kW system stacks up on an interest-free loan, using the same “repay from savings” maths that 0% installer finance already uses today.
£67
Monthly repayment
(£8,000 over 10 years)
£80+
Monthly bill savings
+ SEG export income
£13+
Net positive cash flow
from month one
Once the loan is repaid (typically after 10 years), you keep the full £800 to £1,000+ of annual savings. With modern panels lasting 25 to 30 years, that is 15 to 20 years of pure profit after the loan ends.
Figures are illustrative, based on a typical UK 4–5kW system with average self-consumption. Your savings depend on system size, roof orientation, usage pattern, and your SEG export tariff.
Don’t want to wait? 0% finance is available today
Warm Homes Loan Scheme loans are not expected until September 2026, but you do not have to wait to get the same outcome. Several major suppliers offer genuine 0% APR finance over 2 to 3 years (E.ON Next, So Energy, and BOXT as of July 2026), green personal loans run from about 3% APR over 3 to 7 years, and pay-monthly solar plans start around £75/month with nothing upfront. The repayment model is identical: your monthly payment is typically close to or less than your bill savings.
What finance available today gives you
- £0 deposit options, spread over 2 to 25 years depending on product
- 0% APR over short terms means you repay only what the system cost
- With a loan, you own the panels from day one and keep all the electricity
- Full choice of panel brand, system size, and battery
- Keep all SEG export payments
See our full solar panel finance guide for named 0% APR offers, current loan rates, and how the Warm Homes route compares.
Warm Homes Plan Loans: FAQ
Are there really free loans for solar panels in the UK?
The Warm Homes Plan commits to interest-free and low-interest loans so "able to pay" households can install solar with no upfront cost and repay over time. "Free" refers to the lack of interest, not free money, you do repay the loan, but from your bill savings rather than out of pocket. Grants (genuinely free) remain available for eligible low-income households. The exact loan terms are being finalised through 2026.
How is a Warm Homes loan different from a grant?
A grant is fully funded and never repaid, it is aimed at low-income households on benefits with an EPC rating of D to G. A loan is repayable (interest-free or low-interest) and aimed at higher-income households who do not qualify for a grant but still want £0 upfront. Both let you own the panels from day one.
When will Warm Homes loans be available?
The official Scheme Rules say loans are expected to be available to the public from September 2026, once approvals are secured. The first lender application window closed on 17 July 2026 and a second window follows in late 2026 for onboarding in early 2027. The grant element of the Warm Homes Plan is already live through local councils. Until the loans land, short-term 0% APR supplier finance and low-APR green loans offer the same pay-from-savings model today.
Will I be credit-checked for a Warm Homes loan?
Almost certainly. Like any finance product, a loan route will involve an affordability and credit assessment. The grant route does not, it is based on benefits, income, and EPC rating instead. If you are worried about a credit check, check your grant eligibility first.
Can I use a loan to add a battery, not just panels?
Yes. Unlike grants (which usually fund panels-only packages), a loan or 0% finance deal lets you choose a larger system with battery storage. You decide the spec; the loan simply covers the cost you then repay from savings.
Is repaying from savings guaranteed?
It is a design goal, not a guarantee. Repayments are set to be lower than typical bill savings, but your actual savings depend on system size, roof orientation, how much electricity you use during daylight, and your export tariff. A reputable installer will model your specific savings before you commit.
Is a Warm Homes loan better than 0% installer finance?
They are very similar in practice, both give £0 upfront and repay-from-savings. A 0% installer deal is available right now and lets you pick your installer and equipment freely. A government loan may offer longer terms or apply where installer finance is declined. Compare both when the Warm Homes loan launches.
Does this replace the old free solar panel schemes?
The old rent-a-roof free solar schemes (where a company kept your panels and the Feed-in Tariff income) ended when the FiT closed in 2019. The Warm Homes Plan is completely different: you own the panels, keep the electricity, and either get them grant-funded or repay an interest-free loan from your savings.
Related Guides
Free Solar Eligibility Checker
Check if you qualify for free or funded solar: benefits, EPC, income, region.
Warm Homes Plan Solar
£13.2bn UK government scheme funding solar for low-income households.
Free Solar Panels
Free solar panel schemes: ECO4, GBIS, rent-a-roof history, and scam warnings.
Solar Financing
Loans, payment plans, and how to finance solar panels.
Solar Panel Grants
Warm Homes grants up to £15,000, 0% VAT, Smart Export Guarantee, and business capital allowances.
Sources
- DESNZ, Warm Homes Plan policy paper, gov.uk
- DESNZ, Warm Homes Loan Scheme: apply to participate as a lender (Phase 1), incl. Scheme Rules, gov.uk
- gov.uk, Apply for the Warm Homes: Local Grant, gov.uk
- gov.uk, Find ways to save energy in your home, gov.uk
- Energy Saving Trust, Solar Panels, energysavingtrust.org.uk
Last updated: August 2026. Warm Homes Plan loan terms are being finalised by DESNZ, always check the latest gov.uk guidance before applying.
Fact-checked by John Rooney, Solar Energy Editor. Editorial policy
John Rooney is the founder of Solar Info and has been covering the UK solar energy market since 2023. He researches every battery and inverter brand against manufacturer datasheets, MCS and Ofgem data, and feedback from the MCS-certified installers in our directory before publishing.
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