Warm Homes Loan Scheme: How to Use It with a Heat Pump

The Warm Homes Loan Scheme (WHLS) is a government-backed scheme that makes loans for heat pumps, solar panels and batteries cheaper, with interest cut by up to 5% compared with a regular loan. Ten lenders are offering loans now, some interest free, with up to thirty years to repay in some cases. For a heat pump, you can claim the Boiler Upgrade Scheme grant (up to £9,000) and use a loan to cover the remaining balance.

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.

How does the Warm Homes Loan Scheme work?

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.

You don’t apply to the government. You apply to a participating lender or installer, who carries out normal affordability, credit and eligibility checks.

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
• Tandem Bank
• This Bank

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 (once MCS certification is available)
• Heat network connections: Up to £7,500
• Micro-renewable systems: Up to £20,000
• Biomass boilers: Up to £20,000

(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 your home is heated by oil or LPG can claim a higher grant - see our guide to the £9,000 heat pump grant. 

(Last, 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.