Households across the UK can now apply for government-backed loans to install energy-saving technology without covering the full cost upfront.
The Warm Home Loans scheme offers borrowing of between £7,500 and £35,000, with interest-free or discounted-rate options available through participating energy suppliers and lenders. British Gas and E.On are among the companies involved.
Funding can be used for upgrades including solar panels, home batteries and air-source or ground-source heat pumps. Loans of up to £10,000 are available for air-source systems, while ground-source heat pumps can qualify for up to £35,000.
According to the government, combining a heat pump, battery and solar panels could reduce annual energy bills by as much as £550. A time-of-use tariff could potentially cut a further £300 by encouraging households to use electricity outside peak periods.
The loans are intended to work alongside existing grants, including support of up to £9,000 for some households replacing fossil-fuel heating. This could be particularly useful for homes not connected to the gas grid and reliant on more expensive heating oil.
Why it matters for Britain
The scheme could make low-carbon home improvements more accessible by spreading repayments over several years. That may help more households lower running costs and improve home heating without a large upfront payment.
