Warm Homes Loans for Solar and Batteries: How the New Scheme Works

INTRODUCTION
The government’s new Warm Homes Loan Scheme has launched, promising cheaper borrowing for solar panels and home batteries. If the upfront cost has been what’s held you back, this could change the sums. Here’s what the scheme is, who can use it, and how finance options from lenders including Selina Finance appear in your GE Solutions proposal through OpenSolar.

ARTICLE CONTENT

What is the Warm Homes Loan Scheme?

It’s part of the government’s £15 billion Warm Homes Plan. It is not a grant paid to homeowners. The government gives money to approved lenders, and in return those lenders must cut the interest rate on loans for eligible home energy upgrades, including solar panels and batteries. Lenders still make their own credit decisions, so approval is never automatic.

What can the loans pay for?

The scheme covers solar panels, home batteries and heat pumps, among other technologies. The government will only reduce the cost of borrowing up to a set loan size:

• Solar panels: up to £15,000
• Home battery: up to £15,000
• Solar and battery together: up to £30,000

The minimum loan term is three years, and some of the shorter loans are expected to carry a 0% rate. The rate you’re offered depends on the lender, the loan and your circumstances.

Who can apply?

You need to own the property, with or without a mortgage, and it must be in the UK. You can combine a Warm Homes loan with some other funding, but not for the same improvement. Low-income households may qualify for fully funded upgrades through other parts of the Warm Homes Plan instead.

How finance works through us

When we prepare your solar proposal, we use OpenSolar, which can show finance options alongside your system design and savings figures. Selina Finance is one of the lenders available through it. Selina offers loans secured against your home, for amounts from £5,000 to £500,000. Because they’re secured on your property, they can offer lower rates and higher loan sizes than unsecured loans, but your home is at risk if you can’t keep up the repayments.

The rules also limit what we can say. We can show you that finance is available, but we can’t advise on credit products. For questions about rates, terms, eligibility or whether a Warm Homes rate applies to your quote, speak to Selina directly.

Is borrowing right for you?

Cheaper finance doesn’t automatically make it the right choice, so compare before you commit:

• Total cost, not just the monthly payment. Look at the full amount repayable over the term.
• Secured or unsecured. Make sure you understand what the loan is secured against.
• Savings versus repayments. Ask us for an estimate of what your system should save, and set that against the monthly cost.
• Other options. Paying in cash, using existing savings, or comparing other lenders on the scheme may suit you better.

This article is general information, not financial advice. If you’re unsure, speak to an independent adviser.

Timing matters

Solar and battery installations still qualify for 0% VAT until 31 March 2027, and the energy price cap is forecast to rise again in January. Cheaper finance combined with a VAT saving and rising bills makes this a good time to get a quote and see how the numbers work for your home.

Get a free, no-obligation quote

Our team will survey your property, design a system around your usage, and show you your finance options in a clear proposal. There’s no obligation to go ahead.

Warning: Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.