Rooftop solar energy systems, paired with battery energy storage, are one of the most effective ways to bring down household energy bills. A typical installation saves many hundreds of pounds each year, the precise amount varying according to capacity, configuration and location.
“With the Warm Homes Loan Scheme now in place, more homes can go solar next year than ever before, taking control of their energy and insulating themselves from high energy bills” said Chris Hewett, Chief Executive of Solar Energy UK. “Critically, it will ensure that households across society can overcome any financial barriers, making sure that the benefits are felt where they are most needed. We are already expecting the annual record for smaller-scale solar systems to be broken within a few weeks. I have every confidence that the scheme will help deliver yet another record next year, over and above the 300,000 we expect to see this year. That in turn means employing more people, cutting energy bills and fuel poverty, delivering economic growth and cutting dependence on increasingly expensive natural gas.
The Warm Homes Loan Scheme was first trumpeted in the Labour’s 2024 manifesto, as part of the Warm Homes Plan. It is comparable to a Scottish Government programme that formerly offered interest-free loans for home solar installations, which had a significant impact on fuel poverty.
Rather than being provided directly by the state, the loans will be made available across the UK via a series of partners, including Solar Energy UK members Sunsave and E.ON (via Homeserve). Interest rates will be cut by up to 5 percent on the rate that would otherwise apply, saving customers hundreds of pounds a year and ensuring that savings exceed repayments.
Loans for solar panels will be capped at up to £15,000, enough to secure an array substantially larger than the household average. The same cap will apply for battery energy storage, again plentiful.
“Two further aspects of the scheme are also very welcome” added Gemma Grimes, Solar Energy UK’s Director of Policy and Delivery. “All home energy upgrades, barring connections to heat networks, will be conducted by installers certified by the standards body MCS, with whom we work closely. This will help secure and maintain consumer confidence. Grants for heat pumps will also remain, under the government’s Boiler Upgrade Scheme (and Home Energy Scotland in Scotland), further reducing the cost of installations.”
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