Government Scheme Explained
Warm Homes Loan Scheme: Solar Panels & Batteries in Sussex and the Isle of Wight
A plain-English guide to the government's new loan scheme for solar panels, batteries and heat pumps: who qualifies, how much you can borrow and how to apply.
- A loan, not a grant
- UK homeowners
- MCS installer required
- Apply to a lender directly
At a Glance
The Scheme in Four Points
The first participating lenders started offering Warm Homes loans at the end of October 2026. Checked against the GOV.UK guidance on 3 November 2026.
What it is
A loan from participating lenders, such as banks, under a government scheme, to pay for energy-saving improvements. It is a loan, not a grant. Some loans are interest-free; rates vary by lender.
Who can apply
Homeowners anywhere in the UK, with or without a mortgage, and private landlords borrowing personally for a home they let. There is no income test.
What it covers
Solar panels, battery storage, air and ground source heat pumps, heat network connections, domestic wind turbines and micro hydro.
How you apply
To a participating lender, not to the government. The lender runs its own credit and affordability checks.
Get your MCS installation quote
South Coast Solar Solutions is MCS certified for solar PV and battery storage across Sussex, the Isle of Wight, Hampshire, Surrey and Dorset. Get a clear, itemised quote first, then compare lenders on GOV.UK.
Loan Limits
How Much You Can Borrow
The government sets a maximum loan for each technology. Those figures are ceilings, not offers: each lender decides whether to lend to you, how much, over what term and on what terms.
Up to
£15,000
Solar panels
Up to
£15,000
Battery storage
Up to
£20,000
Air source heat pump
air to water
Up to
£35,000
Ground source heat pump
| Other micro-renewable systems | Up to £20,000 |
| Heat network connection | Up to £7,500 |
| Air to air heat pumponce MCS certification is available for them | Up to £10,000 |
Source: the government's Warm Homes Loan Scheme factsheet (27 October 2026). For what those caps buy in practice, see our published prices set against the caps. Whichever way you pay, 0% VAT on residential solar and batteries applies until 31 March 2027, and the Smart Export Guarantee still pays you for exported electricity.
Eligibility
Who Can Apply
You can apply if
- You own the property, with or without a mortgage, or you are a private landlord borrowing personally
- The property is in the UK
- It is a home, not a commercial building
- The loan pays for one or more of the listed improvements
- An MCS certified installer does the work (heat network connections excepted)
Good to know
- Tenants cannot apply, because the loan is for the owner.
- There is no income threshold. Lenders run their own credit and affordability checks and can set their own extra rules.
- You cannot do the work yourself.
- You can combine it with the Boiler Upgrade Scheme or Home Energy Scotland grants, but not with other government funding for the same improvement.
Five Steps
How to Apply
You apply to a lender that offers Warm Homes loans, not to the government. GOV.UK sets out three routes: directly to a participating lender, through your mortgage provider, or through an installer or retailer that arranges finance for the work. Start with the GOV.UK list of participating lenders.
- 1
Get your installation quotes
Ask MCS certified installers for itemised quotes, so you know exactly what the work will cost.
- 2
Compare participating lenders
GOV.UK lists the lenders taking part. Compare the total amount repayable and how long you will be paying, not just the monthly figure.
- 3
Apply to the lender
Apply directly to the lender or through your mortgage provider. A loan funded through the scheme will say so in its product details.
- 4
The installation
An MCS certified installer fits your system. For solar, batteries and heat pumps you cannot do the work yourself.
- 5
A possible audit
Your home may be picked at random for a DESNZ or MCS check. Being picked does not mean anything is wrong, and any visit comes with at least 48 hours' notice.
Don't Mix Them Up
Warm Homes Loan or Warm Homes: Local Grant?
Two schemes with similar names and very different rules. If your household is on a low income, check the grant first.
| Compare | Warm Homes Loan Scheme | Warm Homes: Local Grant |
|---|---|---|
| What it is | A loan you pay back, plus any interest the lender charges | A grant: improvements paid for, nothing to repay |
| Who it is for | UK homeowners, whatever their income | Lower-income households, means-tested |
| Who runs it | Participating lenders, with government backing | Local councils |
| How to apply | To a participating lender | Through your council |
| What it pays for | Solar, batteries, heat pumps and more | Mostly insulation and heating first, sometimes solar |
Where We Fit In
An MCS Certified Installer, Not a Lender
South Coast Solar Solutions is MCS certified for solar PV and battery storage, which is the installer requirement the scheme sets for those installations. South Coast Solar Solutions is not a lender or credit broker and does not arrange the loan, and this page is general information rather than financial advice.
What we can do is give you a clear, itemised quote for your installation, so you know exactly what the work costs before you decide how to pay for it.
Get an itemised quoteQuestions, Complaints & Scams
If Something Goes Wrong
Government schemes attract scammers. Be cautious about unexpected calls, texts or doorstep visits offering a "Warm Homes loan". The government and lenders never cold-call to sell Warm Homes Loans or charge a fee to apply.
A problem with a lender
Raise it with the lender first. If it is not resolved, you may be able to take it to the Financial Ombudsman Service.
A problem with an installer
Raise it with the installer first, then with MCS, which certifies installers under the scheme.
A question about the scheme
If neither can answer it, contact the DESNZ Warm Homes Loan Scheme team at WHLS@energysecurity.gov.uk.
Suspect a scam
Report fraud or misuse to Warm Homes Counter Fraud at WHLScounterfraud@energysecurity.gov.uk. Never feel pushed into signing on the spot.
FAQs
Frequently Asked Questions
Is the Warm Homes Loan Scheme a grant?+
No. It is a loan from a participating lender, which you pay back along with any interest the lender charges. Lower-income households may qualify for a council grant through the separate Warm Homes: Local Grant instead.
Can I use a Warm Homes loan for solar panels and a battery?+
Yes. Solar panels and battery storage are both covered, and you can apply for a loan that pays for more than one improvement. The government's factsheet sets the limits at up to £15,000 for solar panels and up to £15,000 for a battery.
Who can apply for a Warm Homes loan?+
Homeowners in the UK, with or without a mortgage, and private landlords borrowing personally. There is no income test, but tenants cannot apply, and every applicant has to pass the lender's own credit and affordability checks.
Does my installer need to be approved for the scheme?+
For solar panels, batteries and heat pumps the installer must usually be MCS certified, and you cannot do the work yourself. GOV.UK asks for MCS certification rather than any separate approval, so that is the thing to check. South Coast Solar Solutions is MCS certified for solar PV and battery storage.
Can I combine a Warm Homes loan with other help?+
You can combine it with other funding such as the Boiler Upgrade Scheme for heat pumps or Home Energy Scotland grants, but you cannot use a Warm Homes loan and other government funding to pay for the same improvement.
How do I know a loan is part of the scheme?+
The loan product will say if it is funded by the government through the Warm Homes Loan Scheme. GOV.UK lists the lenders taking part.
Can South Coast Solar Solutions arrange a Warm Homes loan for me?+
No. South Coast Solar Solutions is not a lender or credit broker and does not arrange the loan. You apply directly to a participating lender or through your mortgage provider, and GOV.UK lists the lenders taking part.
Sources: the GOV.UK Warm Homes Loan Scheme guide and the government factsheet, checked on 3 November 2026. The scheme is new, so details may change: always check GOV.UK and the lender's own terms.
Keep reading
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