Homes across UK to get low- or no-interest loans to fund solar panels and heat pumps
Government-backed Warm Home Loans scheme to help households cut energy bills by hundreds of pounds Households across the UK can now cut their energy bills by hundreds of pounds a y
By The Guardian
Households across the UK can apply for government-backed loans to help pay for solar panels, batteries and heat pumps under a new Warm Homes Loan Scheme.
The scheme launched on Tuesday, 27 October, offering interest-free or reduced-rate finance without requiring households to pay the full cost upfront.
Loans will be available to homeowners across England, Scotland, Wales and Northern Ireland. The Government says participating lenders will offer borrowing at rates up to five percentage points below their usual rates, with some loans available at 0% interest.
The amount available depends on the technology. The scheme supports loans of up to £15,000 for solar panels, £15,000 for electrical storage batteries, £20,000 for air-to-water heat pumps and £35,000 for ground-source heat pumps.
Other eligible improvements include air-to-air heat pumps, biomass boilers, heat-network connections and micro-renewable systems.
Repayments can be spread over several years, with some lenders offering terms of up to 30 years. Ten lenders are initially taking part in the scheme.
The Government says a home fitted with a heat pump, battery and solar panels could save up to £550 a year on energy bills. A further saving of up to £300 a year may be possible through a time-of-use energy tariff.
Homeowners may also be able to combine a loan with a grant of up to £9,000 through the Boiler Upgrade Scheme. In Scotland, the equivalent support is available through Home Energy Scotland.
The scheme is intended to reduce the upfront cost of installing low-carbon energy technology while helping households cut their ongoing energy bills.