Warm Homes loans: what installers need to know

The new Warm Homes Loan Scheme could help more customers move ahead with solar panels, battery storage and heat pumps by making the cost of borrowing more affordable.

For installers, it offers a reason to revisit enquiries where customers were interested but the upfront cost prevented them from proceeding.

How does it work?

The government supports participating lenders to offer reduced rate loans for eligible home energy improvements. Customers borrow from the lender and repay the loan over an agreed term.

There is no single scheme interest rate. Some products are interest free, while others offer reduced rates. The scheme can reduce interest rates by up to five percentage points for loans with terms of up to ten years, with smaller reductions possible for longer terms.

Customers apply through a participating lender or an installer offering its finance, subject to eligibility, credit and affordability checks.

Who can apply?

The scheme covers existing residential properties across the UK and is open to eligible owner occupiers and private landlords. Individual lenders can set narrower requirements, including geographical restrictions and whether they lend to landlords.

What can it fund?

The main supported technologies and maximum amounts are:

For heat pumps, the cap applies to the eligible installation cost before deducting any Boiler Upgrade Scheme grant. Associated installation costs must also fit within the relevant technology cap.

Other eligible technologies include heat network connections, domestic wind and micro hydro systems, and eligible rural biomass installations receiving an applicable grant. Air-to-air heat pumps will become eligible following their introduction into BUS and the availability of the required MCS standards and certification. Lenders may support only some technologies and offer lower borrowing limits.

Batteries can be installed on their own or alongside solar PV. Necessary installation and eligible ancillary costs can be included within the relevant technology cap. However, insulation, replacement roofing, structural repairs and standalone EV chargepoints are excluded.

Is MCS certification required?

With the exception of heat network connections, installations must be carried out by an installer holding the relevant MCS certification. This gives customers another reason to choose an MCS certified business.

Some lenders also require installers to join their approved partner network. MCS certification alone does not automatically give an installer access to every lender’s finance.

Which finance options look useful?

The Money Co-op launched a competitive direct to customer option, advertising loans of £7,500–£25,000 at 2.7% APR, subject to lending requirements and technology specific limits.

However, it temporarily paused new applications on 2 November following high demand. Customers can register their interest to be notified when applications reopen, but no reopening date has been confirmed.

For businesses wanting to offer finance through their own sales process, Tandem, Propensio and Secure Trust Bank’s V12 Retail Finance provide routes worth exploring. Access depends on each provider’s approval process and scheme requirements. Installers should request current rates, supported technologies, payment arrangements and any costs to their business before choosing a partner.

Tandem, for example, requires installers to be both MCS certified and approved to offer its finance. Customers cannot apply directly, and the applicable rates and terms are provided through the installer.

Other participating providers include HomeServe Finance, Hometree Finance, Selina Finance, South Manchester Credit Union, Sunsave and thisbank. Availability, installer choice and eligibility vary, so check the government’s participating lender list for the full range.

Can customers combine a loan with a grant?

Eligible customers can use a Warm Homes loan alongside Boiler Upgrade Scheme or Home Energy Scotland grant support, subject to the relevant rules. This can help customers finance the remaining eligible installation cost after their grant.

What should installers do now?

Check which lenders support the technologies you install and whether customers can apply independently or you need to become an approved finance partner.

Then consider following up on quotations that stalled because of cost. Explain the available routes, provide clear installation and performance information, and direct customers to the lender for their individual finance terms.

Avoid promising that every installation will require no upfront payment. Deposits and payment timing vary: some products require customer contributions, while others release funds only after installation. Energy savings should also be shown separately from loan repayments.

Thinking about becoming MCS certified? Speak to our team to find out how Easy MCS can support you through certification and help you deliver compliant installations.

Information checked on 6 November 2026. Rates, products and eligibility may change. Finance is subject to the lender’s terms and assessment.