The Warm Homes Plan is the UK government’s biggest-ever home energy efficiency programme, close to £15 billion of investment, aimed at upgrading up to five million homes by 2030. For homeowners, the headline promise is low-interest or zero-interest loans for solar panels, heat pumps and insulation, plus grants for low-income households. The detail is still being worked out. Here is what is confirmed in May 2026, what is not, and what to do while you wait.
The headline figures
The Warm Homes Plan was confirmed in October 2024 and reaffirmed at the 2025 spending review. Three numbers matter:
- £13.2 billion committed across this parliament for warm-home upgrades.
- £2.7 billion specifically for the Boiler Upgrade Scheme between 2026/27 and 2029/30.
- 5 million homes the government aims to reach by 2030.
For context, the UK has roughly 28 million homes. Reaching 5 million in five years means around a million homes a year, five times the current pace. The plan is the mechanism by which the government hopes to lift that rate.
Who qualifies, what we know
The plan splits homeowners into two groups:
Low-income households, eligible for grants covering solar panels, heat pumps and other improvements at little or no upfront cost. Eligibility criteria have not been published in detail, but are expected to follow the existing pattern: receiving Pension Credit, Universal Credit, Income Support or similar means-tested benefits will likely qualify. The successor to the ECO4 scheme (which closes 31 December 2026) will sit inside this group.
Everyone else, able to access low or zero interest loans to fund upgrades. The loans will be repaid over time, ideally from the energy bill savings the upgrades produce. The interest rate, term length, eligible upgrades and lender are not yet published.
You can apply now to existing routes, the Boiler Upgrade Scheme is open, ECO4 runs until December 2026, and the Warm Home Discount provides £150 off electricity bills for eligible households each winter. These are not part of the new loans programme but they are not closing either.
What the plan is expected to fund
Energy Saving Trust, which has been advising government on programme design, lists the expected scope:
- Solar PV (panels) and battery storage.
- Air-source and ground-source heat pumps.
- Loft, cavity wall, internal and external wall insulation.
- Smart heating controls and thermostats.
- Replacement of inefficient windows and doors.
- Heat networks where geographically appropriate.
What is unlikely to be funded: hydrogen-ready boilers (the policy direction has effectively ruled out domestic hydrogen), like-for-like gas boiler replacements (these do not improve efficiency), and unproven technologies.
How the low-interest loans will likely work
The model the government has signalled is “pay-as-you-save”: you take a loan to fund a heat pump or solar installation, and the monthly repayment is calibrated to be no more than the energy bill saving the upgrade delivers. In principle this means installing a £14,000 heat pump (net of the BUS grant) costs you nothing extra each month, your gas bill drops by enough to cover the loan payment.
Two large UK banks already offer their own schemes that look similar:
- Nationwide offers £5,000 to £20,000 for energy improvements including heat pumps, solar panels and insulation.
- Halifax offers £2,000 cashback toward a heat pump, £1,000 toward solar panels, or £500 toward other energy-efficient improvements.
The Warm Homes Plan loans are expected to undercut these on rate, since they are built to be at-cost rather than profit-generating. The administrator (likely a state-backed institution, possibly Great British Energy) has not been confirmed.
What you can do right now
Waiting for the plan detail is not the only option. Five things you can do this month:
- Get an EPC. If your home does not have a current Energy Performance Certificate, get one. EPCs are needed for almost every grant and loan scheme. Cost is typically £60 to £120.
- Apply for the existing BUS grant if your boiler is due for replacement. £7,500 (or £9,000 from July if off-grid) is real money, available now.
- Check Warm Home Discount eligibility. The £150 winter discount is automatic for many but you can confirm via your supplier.
- If you are on a low income, contact your local council. Many councils administer ECO4-funded upgrades through their own delivery partners, insulation, sometimes heating, often at no cost.
- Get insulation quotes. Loft and cavity wall insulation is the highest-return upgrade. Heat pumps work much better in insulated homes. Most loans will require a sensible level of insulation before they fund a heat pump.
When the loans will actually open
The official phrasing from government is “later this year.” Industry observers expect:
| When | What is expected |
|---|---|
| Summer 2026 | Detailed scheme rules published; loan provider confirmed. |
| Autumn 2026 | Pilot phase opens for selected regions or upgrade types. |
| Early 2027 | Nationwide rollout to all eligible homeowners. |
| 2028–2030 | Programme scales to target of 1 million homes per year. |
This timeline is not guaranteed. If you are planning a major home energy upgrade and you are not in financial need, you may want to wait for the loan terms before committing, particularly for solar and battery installations where the up-front cost is significant.
What could go wrong
Two risks to be aware of:
Demand outpacing supply. The UK has roughly 4,000 trained heat pump installers. Reaching a million homes a year would require around five times that workforce. The plan includes training funding, but bottlenecks are likely in 2027 and 2028.
Programme delivery slipping. Past UK home energy schemes have a poor track record. The Green Deal (2013–2015) and Green Homes Grant (2020–2021) both closed early after low take-up. The new plan is structured differently, but it is fair to plan as if dates slip.
Sources
- Warm Homes Plan, gov.uk
- What the Warm Homes Plan means for you, Energy Saving Trust
- Boiler Upgrade Scheme explained, Energy Saving Trust
- Energy Company Obligation, Ofgem
Frequently Asked Questions
Not yet. The loan scheme has been announced but detailed terms have not been published. Expected later in 2026. The Boiler Upgrade Scheme grant is open now and stays open under the plan.
ECO4 closes on 31 December 2026. A successor low-income grant scheme will sit inside the Warm Homes Plan. Households currently eligible for ECO4 should expect a transition route, but no detail has been published.
The Warm Homes Plan is a UK government initiative covering England primarily. Scotland operates Home Energy Scotland with separate funding; Wales has its own Nest scheme.
The expected model attaches the loan to the property rather than the borrower, so the buyer takes on the remaining balance along with the lower energy bills. Final terms have not been published.
