Making Clean Energy More Accessible: Everything You Need to Know About the UK’s Warm Homes Loan Scheme

At Aira, our mission has always been crystal clear: to accelerate the electrification of home heating and help households transition away from fossil fuels. We know that while millions of homeowners across the UK are eager to lower their energy bills and reduce their carbon footprints, the upfront cost of clean tech like heat pumps, solar panels, and battery storage has often felt like a roadblock.

That’s why the launch of the government’s new Warm Homes Loan Scheme (WHLS) is such an exciting milestone for the green transition.

Designed to make low-carbon home upgrades much more affordable, the scheme unlocks access to low- and zero-interest financing options. Here is a breakdown of what the scheme is, who it's for, and how it can help you bring an Aira Heat Pump, Power range and other renewable tech into your home.

What is the Warm Homes Loan Scheme?

The Warm Homes Loan Scheme is a government-supported initiative designed to bridge the gap for households that want to invest in home energy efficiency, but face barriers due to initial capital costs.

Working alongside participating lenders, the scheme provides access to specialized finance products specifically tailored for clean energy upgrades. Depending on the provider, these loans feature highly competitive rates - including options for zero-interest borrowing - with flexible repayment terms spanning up to several decades.

Who are the lenders?

The Warm Homes Loan Scheme is supported by 10 lenders:

• HomeServe Finance
• Hometree Finance
• The Money Co-Op
• Propensio
• Secure Trust Bank
• Selina Finance
• South Manchester Credit Union
• Sunsave Energy
• Tandem Bank
• This Bank

Outside of the new Warm Homes Loan Scheme, at Aira, we also offer monthly payment plans from 5.9% APR representative. We offer this in partnership with Stax and will support all opt-in customers through the process as part of our end-to-end service offering.

What Technologies Are Covered?

The scheme supports a comprehensive suite of low-carbon and renewable home improvements. Depending on your chosen lender and property suitability, eligible measures and their maximum loan support caps include:

• Air-to-water source heat pumps: Up to £20,000 
• Ground source heat pumps: Up to £35,000 
• Solar PV panels: Up to £15,000 
• Electrical storage batteries: Up to £15,000 
• Air-to-air source heat pumps: Up to £10,000 
• Micro-renewable systems & heat network connections

(Note: Typical heat pump quotes under the scheme can also encompass necessary ancillary works like upgrading radiators, pipework, and water tanks to ensure peak system efficiency.)

Can You Combine It With Other Grants?

Yes! One of the best aspects of the Warm Homes Loan Scheme is its flexibility. While you cannot use a Warm Homes loan alongside other government funding to pay for the *exact same* individual improvement measure, you can use it in tandem with other national support structures.

For instance, homeowners can leverage grants like the Boiler Upgrade Scheme (BUS) or regional equivalents (such as Home Energy Scotland grants) for specific installations and use a Warm Homes loan to cover the remaining balance of the heat pump, or finance complementary technologies, such as adding solar panels or a storage battery alongside your heat pump.

(If you are on a lower income, you may also want to check if you qualify for fully-funded upgrades via schemes like the Warm Homes: Local Grant before applying for a loan.)

Who is Eligible?

The scheme is available to domestic property owners across the UK (England, Scotland, Wales, and Northern Ireland). To qualify for a loan through a participating lender, you generally need to:

1. Own your home (or be an eligible private landlord/leaseholder).
2. Pass standard lender affordability, credit and eligibility checks. 
3. Plan to install an eligible, certified clean energy technology.

All installations under the scheme must be carried out by certified professionals, such as MCS-certified installers, to guarantee high standards of safety, quality, and consumer protection.

How to Get Started

1. Explore Your Options: Visit the official GOV.UK Warm Homes Loan Scheme overview to review participating lenders and detailed guidance.
2. Get Quotes: Speak with certified installers to evaluate your property and design the ideal clean energy system for your household. 
3. Apply: Submit your finance application through an approved lender or participating partner route, and take the next step toward a warmer, cleaner, and more energy-independent home.