Warm Homes Loan for solar panels: the complete guide
On 27 October 2026, the government launched the Warm Homes Loan Scheme: no- and low-interest loans from approved lenders to help UK households pay for solar panels, batteries and other clean energy technology. This guide explains how the Warm Homes Loan works for solar panels and batteries, what solar costs and saves, and how to choose an installer.
We're Geko Energy, an MCS-certified solar installer. We don't offer or arrange loans, so this guide is information only. Everything about the scheme comes from the government's factsheet.
A Geko Energy solar and battery install in Somerset.
The Warm Homes Loan at a glance
Launched
27 Oct 2026
by the government
Solar panels
£15,000
maximum loan supported
Battery storage
£15,000
maximum loan supported
Lenders at launch
10
more expected
Repayment terms
Up to 30 yrs
with some lenders
Installer
MCS
certification required
Run by
Department for Energy Security and Net Zero
Who can apply
Households in England, Scotland, Wales and Northern Ireland
Interest rates
No- and low-interest. The government says rates are up to 5% lower than regular loans from banks or high-street lenders, and some lenders offer interest-free loans
How to apply
Directly with a participating lender, or through an installer the lender works with
The Warm Homes Loan Scheme is a government-backed loan programme for home clean energy technology. The government says it worked with lenders to offer loans at lower interest rates than regular loans from banks or high-street lenders, and some lenders offer them interest-free. Payments are spread over many years instead of the full cost being paid at the start.
Part of the Warm Homes Plan
It's the loan part of the government's wider Warm Homes Plan, a £15 billion package published on 21 January 2026. The plan also funds free upgrades for low-income households, covered in the other schemes section below.
Why the government launched it
The government's stated aim is to make energy affordable and to leave households less exposed to price shocks caused by conflicts abroad. Its factsheet names the upfront cost of solar, batteries and heat pumps as a key barrier, and the loans are designed to remove it.
Demand was already rising. The government says almost 150,000 solar panel systems were installed in the first six months of 2026. MCS reported 267,032 certified solar installations across the UK in 2025, 31% above the previous record.
What it covers
The scheme covers solar panels, battery storage, heat pumps, biomass boilers, micro-renewable systems and heat network connections. This guide focuses on solar panels and batteries.
What it isn't
It isn't a grant: anything you borrow is repaid. Lenders also run their normal affordability, credit and eligibility checks, so nobody is guaranteed a loan.
How much can you borrow for solar panels?
The scheme supports loans of up to £15,000 for solar panels and up to £15,000 for battery storage. Each technology has its own maximum:
Maximum loan supported, by technologyTap a row
Solar panels: up to £15,000. About double the £7,600 the Energy Saving Trust puts on a typical 4.5 kWp home system.
The Energy Saving Trust puts a typical 4.5 kWp home solar system at around £7,600 (via Whito, September 2026). So the £15,000 limit covers the panels for most homes, including larger systems on bigger roofs.
The factsheet lists a separate maximum for each technology. If you're considering panels and a battery together, ask the lender how a combined system is treated.
What solar panels cost and save in the UK
A typical home solar system costs around £7,600, and how fast it pays back depends mostly on how much of the electricity you use yourself and what you're paid for the rest. Figures below are from the Energy Saving Trust and MoneySavingExpert, as reported by Whito in September 2026, unless marked as Geko's.
What a solar panel system costs
The Energy Saving Trust's £7,600 figure for a typical 4.5 kWp system is based on July 2026 prices. Your quote will move with your roof size, scaffolding, roof type and panel choice. A battery adds to the price, and the scheme treats it as a separate technology with its own limit.
What a system saves
There are three ways solar cuts your costs:
1Using your own electricity. Every unit you use from your roof is one you don't buy from the grid. MoneySavingExpert estimates a typical 4.5 kWp system saves £190 to £330 a year on bills from this alone.
2Selling what you don't use. Through the Smart Export Guarantee (SEG), your supplier pays you for electricity you send to the grid. Rates in September 2026 ranged from 4.1p to 25p per unit, depending on the tariff.
3Adding a battery. A battery stores daytime solar for the evening. On a time-of-use tariff it can also charge from the grid overnight at cheaper rates.
How long solar panels take to pay back
The Energy Saving Trust's payback estimates, which include export payments, vary by location:
Location
Estimated payback
London
9 years
Aberystwyth
9 to 10 years
Manchester
10 to 11 years
Stirling
11 to 12 years
London
Estimated payback
9 years
Aberystwyth
Estimated payback
9 to 10 years
Manchester
Estimated payback
10 to 11 years
Stirling
Estimated payback
11 to 12 years
Across Geko's own installs, many of which pair panels with a battery on a time-of-use tariff, we typically see payback in around 5 to 6 years. This is Geko's own figure, and your result depends on your home and usage.
Pete and Sarah in Somerset had 16 panels and a 12 kWh battery fitted in a single day. Their electricity bill dropped from over £3,000 a year to £23 a month. Read their case study.
What makes the biggest difference to your savings
Factor
Why it matters
How much you use at home in the day
Using your own solar saves the full unit price, while exporting earns far less
A battery
Lets you use more of your own solar, and shifts cheap overnight electricity to the evening
Your export tariff
Ranges from 4.1p to 25p per unit, so it can change annual income several times over
Your import tariff
Time-of-use tariffs reward charging a battery when electricity is cheap
Roof direction and shading
South-facing, unshaded roofs generate most; east and west still work well
Location
Southern England generates more per panel than northern Scotland
System size
Bigger systems cost more but generate more, so size it to your usage
How much you use at home in the day
Why it matters
Using your own solar saves the full unit price, while exporting earns far less
A battery
Why it matters
Lets you use more of your own solar, and shifts cheap overnight electricity to the evening
Your export tariff
Why it matters
Ranges from 4.1p to 25p per unit, so it can change annual income several times over
Your import tariff
Why it matters
Time-of-use tariffs reward charging a battery when electricity is cheap
Roof direction and shading
Why it matters
South-facing, unshaded roofs generate most; east and west still work well
Location
Why it matters
Southern England generates more per panel than northern Scotland
System size
Why it matters
Bigger systems cost more but generate more, so size it to your usage
Free · 30 seconds · no details needed
See what you could save
Drag to your rough monthly electricity bill and we'll estimate what solar and battery storage could save you.
Estimate only, based on UK averages for a solar + battery system on a time-of-use tariff. The 25-year figure is net of the install cost and panel degradation, and assumes energy prices stay flat. Your exact figures depend on your roof, usage and tariff. We confirm them at your free survey.
The calculator estimates savings only. It doesn't include the cost of any borrowing.
Ways to pay for solar panels compared
The Warm Homes Loan is one of several ways people pay for solar. Each has trade-offs, and the right one depends on your savings, your mortgage and how long you plan to stay in your home.
Option
Upfront cost
Ongoing cost
Things to weigh up
Savings
Full system price
None
No borrowing costs, but the money is no longer available for other things
Warm Homes Loan
Usually none
Repayments over the loan term
Government-backed reduced rates; lender credit and affordability checks apply; only via participating lenders
Other personal loan or credit card
Usually none
Repayments at the lender's standard rate
Usually costs more than the scheme loans, according to the government
Mortgage-linked borrowing (remortgage or further advance)
Usually none
Added to mortgage payments
Can be spread over a long period; some lenders offer green incentives. See our green mortgages guide
Waiting
None now
Higher bills meanwhile
You miss savings in the meantime, and 0% VAT ends on 31 March 2027
Savings
Upfront cost
Full system price
Ongoing cost
None
Things to weigh up
No borrowing costs, but the money is no longer available for other things
Warm Homes Loan
Upfront cost
Usually none
Ongoing cost
Repayments over the loan term
Things to weigh up
Government-backed reduced rates; lender credit and affordability checks apply; only via participating lenders
Other personal loan or credit card
Upfront cost
Usually none
Ongoing cost
Repayments at the lender's standard rate
Things to weigh up
Usually costs more than the scheme loans, according to the government
Mortgage-linked borrowing (remortgage or further advance)
Upfront cost
Usually none
Ongoing cost
Added to mortgage payments
Things to weigh up
Can be spread over a long period; some lenders offer green incentives. See our green mortgages guide
Waiting
Upfront cost
None now
Ongoing cost
Higher bills meanwhile
Things to weigh up
You miss savings in the meantime, and 0% VAT ends on 31 March 2027
For free, impartial guidance on borrowing, see MoneyHelper.
The Warm Homes Loan and other solar schemes
The Warm Homes Loan sits alongside several other schemes, and most homeowners can benefit from more than one. If you're on a lower income, check the grants first: they can cover the cost entirely.
0% VAT on solar and batteries
What it does for solar
No VAT on solar and battery installs completed by 31 March 2027. From 1 April 2027 it's 5%.
Who it's for
All homeowners
Works with the Warm Homes Loan?
Yes. It lowers the price, so there's less to pay or borrow.
Smart Export Guarantee (SEG)
What it does for solar
Your supplier pays you for electricity you export to the grid.
Who it's for
Anyone with an MCS-certified system
Works with the Warm Homes Loan?
Yes.
Warm Homes: Local Grant (England)
What it does for solar
Free upgrades, which can include solar panels and batteries.
Who it's for
Household income under £36,000, or someone on a means-tested benefit. Usually homes rated EPC D or below.
Works with the Warm Homes Loan?
If you qualify, the grant may mean you don't need to borrow.
Boiler Upgrade Scheme
What it does for solar
Grants of up to £9,000 towards heat pumps, not solar.
SEG rates aren't set by the government. Ofgem only requires each SEG supplier to offer a rate above zero, so rates vary widely. In September 2026 they ranged from 4.1p to 25p per unit, with the highest rates usually reserved for customers whose supplier installed their panels (Whito).
Your system and installer must be MCS-certified to qualify for SEG at all. You can switch export supplier separately from the company that supplies your electricity.
How to check grant eligibility
Warm Homes: Local Grant is delivered by local councils in England. Search your council's website for “Warm Homes Local Grant” to check eligibility and apply. Funding and application windows vary by council.
Who is eligible for the Warm Homes Loan?
The scheme is open to households across the UK: England, Scotland, Wales and Northern Ireland. Beyond that, eligibility is decided by each lender.
What the government's factsheet confirms:
Location: anywhere in the UK.
Checks: the lender carries out its normal affordability, credit and eligibility checks.
Installer: the work must be done by an MCS-certified installer (except heat network connections).
Lender choice: some lenders only work with their own partner installers. Others accept any MCS-certified installer.
The scheme is aimed at homeowners. If you rent, you'd need your landlord's permission for any installation, and you should check with the lender before applying.
Is your home right for solar panels?
Most UK homes with a reasonably clear roof can generate useful solar power. These are the things an installer checks:
What's checked
What works
What needs a closer look
Roof direction
South, south-east, south-west
East and west still work; north-facing roofs generate much less
Shading
Clear roof
Trees, chimneys or nearby buildings shading part of the roof
Roof space
Room for 8 or more panels
Small or broken-up roof areas
Roof condition
Sound roof with years of life left
A roof due for replacement soon: replace it first
Planning
Most houses: permitted development, no application needed
Listed buildings, conservation areas, flats and flat roofs may need permission
Electricity use
Moderate to high use, especially in the day or with a battery
Very low use, unless you plan to export or add an EV
Roof direction
What works
South, south-east, south-west
What needs a closer look
East and west still work; north-facing roofs generate much less
Shading
What works
Clear roof
What needs a closer look
Trees, chimneys or nearby buildings shading part of the roof
Roof space
What works
Room for 8 or more panels
What needs a closer look
Small or broken-up roof areas
Roof condition
What works
Sound roof with years of life left
What needs a closer look
A roof due for replacement soon: replace it first
Planning
What works
Most houses: permitted development, no application needed
What needs a closer look
Listed buildings, conservation areas, flats and flat roofs may need permission
Electricity use
What works
Moderate to high use, especially in the day or with a battery
What needs a closer look
Very low use, unless you plan to export or add an EV
If you're not sure, an MCS-certified installer can check most of this from satellite images and photos before anyone visits.
How the Warm Homes Loan application process works
The government's factsheet sets out these steps. Applications go to a participating lender, or through an installer that the lender works with.
1Work out which upgrades suit your home. Free advice is available on GOV.UK.
2Check whether you might also be eligible for a grant, particularly if you're on a lower income (see other solar schemes above).
3Compare quotes from MCS-certified installers. Check each installer on the MCS register.
4Compare the lenders. The government advises considering the total amount repayable, how long you'll have to pay it back and any monthly fees. Check whether the lender works with your chosen installer.
5Apply to the lender. The lender runs its affordability, credit and eligibility checks.
6Keep your records. If you're approved and the work goes ahead, keep the quote, finance agreement, invoice, proof of purchase and MCS certificate.
7Get the most from your system. Check whether a smart or time-of-use tariff and an export tariff would increase your savings.
Geko Energy doesn't arrange loans or apply on anyone's behalf. If you choose to borrow, you deal with the lender directly.
Which lenders offer Warm Homes Loans?
Ten lenders are taking part at launch, listed here in the order the government gives them. More lenders and products are expected to join.
HomeServe
Hometree Finance
Propensio
Secure Trust Bank
Selina Finance
South Manchester Credit Union
Sunsave
Tandem Bank
The Money Co-op
thisbank
Source: GOV.UK factsheet, 27 October 2026. Geko Energy has no partnership with any of these lenders and doesn't recommend one over another.
Lenders differ on rates, terms, fees and which installers they work with. Some, such as credit unions, may only lend in certain areas or to members. Check the details with each lender directly.
How to choose an MCS-certified installer
Your installer decides whether the system is sized right and fitted well, and that decides what you save. MCS certification is the minimum: without it, your install won't qualify for the Warm Homes Loan or the Smart Export Guarantee.
Questions to ask every installer, with how Geko answers them:
Question to ask
Why it matters
Geko's answer
Are you MCS-certified?
Confirms eligibility; check it on the MCS register
Oversized or undersized systems pay back more slowly
Geko's answer
Designed around your roof, usage and bills on a free video consultation
Is the battery priced separately?
Why it matters
Panels and batteries pay back differently
Geko's answer
No. One total price for the full system
What warranties and protection come with it?
Why it matters
Covers you if equipment fails or the installer closes
Geko's answer
25-year panel warranty, 10-year battery warranty, plus insurance-backed protection through the IAA
Who handles the DNO, SEG and monitoring?
Why it matters
Paperwork delays can hold up export payments
Geko's answer
We do: DNO notification, SEG registration and app setup
How do I reach you after installation?
Why it matters
Aftercare matters for a 25-year product
Geko's answer
In-house customer service team
Other accreditations to look for include TrustMark and NAPIT. Geko holds both, along with MCS and IAA.
Should you add a battery to your solar panels?
A battery lets you use far more of your own solar, and the Warm Homes Loan scheme covers battery storage separately, up to £15,000. Without a battery, most of what your panels generate in the middle of the day is exported for a few pence. With one, it powers your evening instead.
How a battery adds savings
Stores daytime solar for the evening, when you'd otherwise buy from the grid at full price.
Charges overnight on cheap rates. On a time-of-use tariff, a battery charges in the cheap window and powers your home at peak times, even in winter. The government estimates that solar panels, a battery and a heat pump together could save a family up to £550 a year on energy bills, rising by a further £300 a year with a time-of-use tariff.
Backup power. With a dedicated backup circuit, a battery can keep essentials like lights, the fridge and Wi-Fi running in a power cut.
E.ON reports that fuel-poor households in Coventry using a home battery with a time-of-use tariff saved more than £250 a year on average, according to the government's factsheet.
What size battery?
For most UK homes, 5 to 10 kWh is the sweet spot. Too small and you still export solar for pennies; too big and it rarely empties, which slows payback. Size it to your evening usage, any EV charging and your tariff.
Adding one later
If your installer fits a battery-ready hybrid inverter, a battery can be added later in a few hours without touching the panels. Some people install solar first, watch their usage for 6 to 12 months, then size a battery on real data. It usually costs a little more than fitting both at once.
At Geko, we fit Fox ESS and Sigenergy lithium iron phosphate (LFP) batteries with a 10-year manufacturer warranty, and every inverter we install is battery-ready.
Timing: the 0% VAT deadline
Solar panels and batteries installed by 31 March 2027 pay 0% VAT. From 1 April 2027, VAT goes back to 5%.
–
days left
0% VAT ends on 31 March 2027. The install has to be completed by then, not just booked.
On a typical £7,600 system, 5% VAT adds £380. On a larger system with a battery, the difference is bigger. See what the VAT change costs.
The deadline is about the install being completed, not the date you enquire. With Geko, it typically takes around four weeks from first call to a working system:
Week 1
Free video consultation
Week 2
System design and one total price
Week 3
Survey, then installation, usually in a single day
Week 4
Switched on, with DNO notification, SEG registration and the monitoring app set up
If you're applying for a loan, allow extra time for the lender's checks. Installers usually get busier as a VAT deadline approaches, so leaving it until March risks missing it.
Warm Homes Loan FAQs
The scheme
What is the Warm Homes Loan?
A government-backed scheme offering no- and low-interest loans from approved lenders for solar panels, batteries, heat pumps and other clean energy technology. It launched on 27 October 2026.
Is the Warm Homes Loan the same as the Warm Homes Plan?
No. The Warm Homes Plan is the government's wider £15 billion programme, published in January 2026. The loan scheme is one part of it, alongside grants for lower-income households.
Is it a grant?
No. Anything you borrow is repaid. Grants are separate, and mainly for lower-income households.
Is it available now?
Yes. Ten lenders started offering loans at launch, and the government expects more to join.
Is it available in Scotland, Wales and Northern Ireland?
Yes. The government says the scheme covers households across the whole UK.
Borrowing
Does the Warm Homes Loan cover solar panels?
Yes. Solar panels are one of the technologies the scheme covers, with loans of up to £15,000 supported, according to the government. Battery storage is covered separately, also up to £15,000.
How much can I borrow for solar panels?
Up to £15,000 for solar panels and up to £15,000 for battery storage, according to the government.
What interest rate will I pay?
Each lender sets its own rates. The government says scheme rates are up to 5% lower than regular loans from banks or high-street lenders, and some lenders offer interest-free loans. Check the rate and total cost with the lender.
How long can I take to repay?
Terms vary by lender. The government says some allow up to 30 years.
Can I get a Warm Homes Loan with a poor credit history?
Lenders run their normal affordability and credit checks, so approval isn't guaranteed. Each lender decides.
Do I need to own my home?
The scheme is aimed at homeowners. Renters would need their landlord's permission and should check with the lender.
Can I apply through Geko Energy?
No. We don't offer, arrange or recommend loans. If you choose to borrow, you apply to a participating lender directly. Some lenders accept any MCS-certified installer, so check with the lender whether you can use your chosen installer.
What happens to the loan if I move house?
The solar system stays with the property. Check the loan terms with the lender, as some may need repaying when you sell.
Combining schemes
Can I combine a Warm Homes Loan with 0% VAT?
Yes. 0% VAT applies to solar and battery installs completed by 31 March 2027, which lowers the price whichever way you pay.
Can I combine it with a grant?
The government says loans can be combined with Boiler Upgrade Scheme grants of up to £9,000 for heat pumps. If you qualify for a Warm Homes: Local Grant, the grant may cover solar without any borrowing.
Will I still get paid for exporting electricity?
Yes, as long as your system and installer are MCS-certified. Export payments come from your SEG supplier, not the loan scheme.
Solar panels
Can I use the scheme for a battery only?
Yes. Battery storage is covered in its own right, which suits homes that already have solar or want to charge a battery on a cheap overnight tariff.
Do solar panels work in winter?
Yes, at a lower output. A typical UK system produces around 70% of its yearly output between April and September. The annual figures in any good quote already allow for UK weather.
How long does installation take?
Usually one day on the roof, with scaffolding going up the day before.
Do I need planning permission?
Most houses don't: solar panels are usually permitted development. Listed buildings, conservation areas, flats and flat roofs may need permission.
Does the savings calculator include loan costs?
No. The calculator above estimates savings only. Loan costs depend on the lender's rates and terms.
Find out what solar could do for your home
Book a free 30-minute video consultation with one of our engineers. We'll look at your roof, your bills and your usage, and give you one total price for a solar panel and battery system designed for your home. No doorstep visits.
Information only. Geko Energy Ltd is a solar installer. We are not authorised by the Financial Conduct Authority, and we don't offer, arrange or recommend any loan or credit product. Details of the Warm Homes Loan Scheme are taken from the government's published factsheet as of 28 October 2026 and may change. Rates, terms and eligibility are set by each lender. This article isn't financial advice; for free, impartial guidance, visit MoneyHelper.
