Warm Homes Plan UK: Grants, Loans & Free Home Upgrades Explained

Written-by

Janet Richardson

Reviewed-by

Richard Burdett

Updated on

Feb 08, 2026

Warm Homes Plan UK: Grants, Loans & Free Home Upgrades Explained

The Warm Homes Plan was initially outlined and funded in 2025 policy documents but was formally launched and published in January 2026 with more detailed policies and structures than were available in 2025. The Warm Homes Plan is a wide-ranging long-term UK government strategy aiming to improve energy efficiency, cut energy bills and to help tackle fuel poverty across the country. Backed by about £15 billion of public funding the goal is to upgrade up to 5 million homes and take up to 1 million families out of fuel poverty by 2030. The new plan replaces the Energy Company Obligation (ECO) scheme, which is soon to close, with a far more ambitious framework which will run to 2030.  

Millions of families will potentially benefit from solar panels, batteries, heat pumps and insulation that can cut energy bills. The idea is to provide energy-saving upgrades throughout the UK that will speed up the transition to low-carbon heating and at the same time reduce fuel poverty. This plan is a significant step towards addressing energy-inefficiency in the UK.

Support will be available to help all types of households to upgrade their homes including more targeted interventions for those households on low incomes living in energy-inefficient homes. Funding has also been set aside to improve social housing and to protect renters through new standards. There will also be low-interest or interest-free loans available to help households pay for green home improvements.

The Warm Homes Plan covers the whole of the UK, not just England. However, some grants, such as the Warm Homes: Local Grant, are only available in England. The plan includes £1.5 billion for Scotland, Wales, and Northern Ireland to support existing fuel poverty and emissions reduction programmes and to add to national schemes. Each devolved nation will continue to run its own programmes, such as Warmer Home Scotland, Nest in Wales and Affordable Warmth in Northern Ireland. The plan has been widely welcomed by the energy and finance industry.

The high upfront cost of installing solar panels with a battery puts many households off, but a funding package of around £9,000 to £12,000 could be available per home to help cover the cost of the system. The government has said it wants to create a “rooftop revolution” by tripling the number of homes with solar panels.

There are a few key components of the Warm Homes Plan which we will look at here:

How much money can you receive?

Each eligible household can receive up to £30,000 in total funding:

• Around £15,000 for energy-efficiency improvements
• Up to £15,000 to help pay for low-carbon heating

What energy-efficiency measures are being offered?

• Home insulation (such as wall or loft insulation)
• Draught-proofing
• Solar panels
• Battery storage
• Smart heating controls

Low-carbon heating options include:

• Air-source heat pumps
• Ground-source heat pumps
• High-retention storage heaters (in certain cases)

Is your property eligible for this grant?

You may qualify if all the following apply:

• Your home is in England and is privately owned or privately rented.
• Your household’s gross annual income is below £36,000. You may also qualify if you receive means-tested benefits (such as Universal Credit, Pension Credit or Housing Benefit), or if you live in a low-income postcode area.
• Your home has a low Energy Performance Certificate (EPC) rating, usually between D and G.
• If you rent your home, your landlord must agree and take part in the application, as their permission is required.
• Both on-gas and off-gas properties are eligible under this scheme.

How do you apply for the grant?

The way you apply depends on whether you own or rent your home.

If you own your home

The quickest and easiest way to apply is through the government’s online eligibility checker. You will be asked to:

• Enter your home address
• Confirm whether your household income is above or below £36,000
• In some cases, confirm your home’s EPC rating

If you are considered eligible, you’ll then be asked for your email address or phone number. Your application will then be automatically passed to your local council.

You can also choose to contact your local authority directly to apply instead.

If you rent your home

If you live in a privately rented property, your landlord must agree to the application. In this case, you will need to apply directly through your local authority, rather than using the online checker.
What happens next

Your local authority should contact you within 10 working days to discuss your application and request any additional information. If you qualify, they will arrange a home survey to assess what improvements are suitable.

If your home is approved, the council will appoint a Trustmark-registered installer to carry out the work. Installers will not try to sell you anything and will never ask for your bank details.

Please note that not all local authorities are currently taking part in the scheme, so in some areas, applications may take longer to process.

Low and zero-interest loans for green technology

As part of the Warm Homes Plan, the government wants to make sure more people can afford upgrades that reduce their energy bills. A government-backed Warm Homes fund will offer low-interest or interest-free loans to help homeowners cover the cost of installing energy-saving and low-carbon measures.

These loans can be used for:

• Solar panels
• Battery storage
• Heat pumps (including air-to-air systems)
• Smart heating controls
• Home insulation
• Draught-proofing

If you live in England or Wales, you can still use the Boiler Upgrade Scheme, which offers £7,500 off the cost of installing a heat pump. However, homeowners currently have to pay the remaining upfront costs themselves, as there is no extra financial support available. This makes heat pumps unaffordable for many households. Access to low or zero-interest loans could help bridge this gap for many households.

The introduction of the Warm Homes Plan will allow a lot more people to benefit from low carbon homes and lower energy bills. The UK Government expects that the number of rooftop solar panel systems could triple by 2030.

Direct support for low-income households and fuel poverty

A substantial part of the Warm Homes Plan budget is set aside to provide free home upgrades for low-income and vulnerable households. The aim is to reduce energy bills, improve comfort and tackle fuel poverty.

Local councils and social housing providers will deliver these upgrades. Eligible households will receive tailored packages of improvements at no cost, based on the green technologies that work best for their homes. This support is backed by £5 billion of public funding.

In some cases, families could receive fully funded solar panels and battery systems, covering the full average cost of around £9,000 to £12,000. The funding may also be used to upgrade entire streets of social housing, helping to lower bills and improve warmth and comfort for all the residents.

New protections for renters

Around 1.5 million children currently live in privately rented homes affected by cold, damp and mould. The government has said that landlords are responsible for providing homes that are safe, warm, and affordable for their tenants.

To address this, the government is strengthening protections for renters and supporting landlords to make essential energy-efficiency upgrades. These changes aim to take up to 500,000 families out of fuel poverty by the end of the decade.

Under the new rules, landlords will be required to improve their properties to at least an Energy Performance Certificate (EPC) rating of C by 2030. Landlords may need to spend up to £10,000 to meet this standard. It is estimated that these upgrades could help around 400,000 households in the private rented sector escape fuel poverty by 2030.

At present, EPC ratings are largely based on estimated running costs rather than true energy efficiency, which can sometimes result in lower scores after installing technologies such as heat pumps. The government has said it plans to reform the EPC assessment process, with changes expected to be announced later this year.

Key regional funding and policy changes

• £1.5 billion has been allocated to the devolved governments to support locally tailored energy-efficiency improvements and heating upgrades in Scotland, Wales, and Northern Ireland.
• In Wales, privately rented homes must reach an EPC rating of C by 2030. Landlords will be able to access financing options to help pay for upgrades, and the Boiler Upgrade Scheme (offering £7,500 grants for heat pumps) will continue to apply.
• In Northern Ireland, homeowners will gain access to new low- and zero-interest loans for solar panels, battery storage, and heat pumps, with a focus on households that do not qualify for direct grants.
• Across all UK regions, EPC standards are set to change from October 2026, with Scotland expected to use a different assessment system from England, Wales, and Northern Ireland. The plan also introduces £2,500 grants for air-to-air heat pumps.

The UK Government has not yet confirmed how the remaining funding under the Warm Homes Plan will be spent. However, the plan suggests this funding could be used to support loan schemes for:

• Local authorities
• Bulk-buying initiatives
• Community- and co-operative-led projects

A new Warm Homes Agency (WHA) will also be created to help people who want to improve their homes. From 2027, the agency is expected to provide impartial advice through an online service and a national phone line.
This service is intended to give households the confidence to make informed decisions about home upgrades. While some details are still to be confirmed, the creation of the WHA is a significant step towards delivering a national home energy advice service for England.