Warm Homes Plan 2026 - Grants Loans - Energy Upgrades Explained

Understanding the Warm Homes Plan

The UK government launched the Warm Homes Plan in January 2026. It represents the largest public investment in home energy upgrades in British history. The plan allocates £15 billion to improve up to 5 million homes by 2030. It aims to reduce energy bills, tackle fuel poverty, and support the transition to clean energy. Martin Lewis of Money Saving Expert has commented on the scheme. He stated that improving housing stock through energy efficiency is a good long-term way to cut energy bills if done right. He noted previous government schemes were overly complex and poorly designed.

Key Funding and Support Available

The plan operates through three main pillars. These target different household types and income levels. Direct support for low-income families: Low-income households can receive fully funded packages of upgrades. This includes solar panels with battery storage, insulation, and heat pumps. Funding covers the full average cost of £9,000 to £12,000 for solar and battery systems. This pillar is backed by £5 billion of public investment. Universal offer for all households: Working families can access government-backed low and zero-interest loans. These loans cover solar panels, batteries, and heat pumps. The plan aims to triple the number of homes with rooftop solar by 2030. New protections for renters: The plan introduces rules requiring landlords to upgrade properties. This applies to both private and social housing. An estimated 500,000 families in rented accommodation could be lifted out of fuel poverty by 2030.

Boiler Upgrade Scheme Extensions

The existing Boiler Upgrade Scheme continues to offer grants of £7,500. These grants support the installation of air-source and ground-source heat pumps. The scheme has been expanded to include new technologies. Air-to-air heat pumps: Grants of £2,500 are now available for air-to-air heat pumps. These systems can also cool homes during summer months. Heat batteries: Grants of £2,500 are available for heat batteries for central heating systems. Biomass boilers: The scheme continues to offer £5,000 grants for biomass boilers in rural properties not connected to the gas grid. The Boiler Upgrade Scheme budget has been increased to £2.7 billion until 2030. Funding starts at £295 million in 2025-26 and rises to £709 million by 2029-30.

Warm Homes: Local Grant

This scheme provides grants of up to £30,000 for energy efficiency improvements. It targets low-income households in England with properties rated EPC D to G. Eligibility requirements: Available measures: Landlords can apply if tenants meet income criteria. For additional properties beyond the first, landlords must contribute 50% of costs. Landlords must declare they will not raise rents directly due to upgrades.

• Household income of £36,000 or less
• Property must be privately owned or rented
• Valid Energy Performance Certificate showing rating D, E, F, or G
• Certain postcode areas may qualify regardless of income
• Wall, loft, and underfloor insulation
• Air source heat pumps
• Solar panels
• Smart heating controls

Low and Zero Interest Loans

A new loan scheme makes clean energy accessible to all households regardless of income. The government is providing £2 billion for this programme. Loan features: Details on how to access these loans will be published later in 2026 following consultation with financial institutions.

• Government-backed guarantees
• Zero or low interest rates
• Available for solar panels, batteries, and heat pumps
• Open to all homeowners including landlords

Planning and Regulatory Changes

The plan includes several planning reforms to accelerate installations. Heat pump installations: New build requirements:

• Removal of the one-metre boundary rule
• Maximum unit size increased from 0.6m3 to 1.5m3
• Multiple heat pumps allowed in detached homes
• No planning permission required for most installations
• All new homes must include solar panels as standard from 2026
• Future Homes Standard implementation ensures properties are cheaper to run

Support for Social Housing

The Warm Homes: Social Housing Fund provides £1.2 billion from 2025 to 2028. This supports eligible social housing landlords to upgrade properties. The fund aims to improve entire streets simultaneously. This reduces costs and minimises disruption for tenants.

How to Apply for Support

Different schemes have different application routes. Warm Homes: Local Grant: Apply through your local council via the government website. Councils typically respond within 10 working days to arrange a home survey. Call 0800 098 7950 for assistance with applications. Boiler Upgrade Scheme: Contact an MCS-certified installer. They apply for the voucher on your behalf. You receive a discount on the installation cost. Low-interest loans: Details on accessing these will be announced later in 2026.

Eligibility Checklist

To benefit from Warm Homes Plan schemes, you will generally need: Most schemes require your property to have an EPC rating of D or below. You can check your EPC rating on the government website if you do not have a certificate.

• A valid Energy Performance Certificate for your property
• Proof of ownership or landlord permission
• Income documentation for means-tested grants
• A property in England, Wales, or Scotland (some schemes vary by region)

Technologies Covered

The plan supports a range of energy efficiency and clean heating technologies.

• Solar photovoltaic panels
• Solar thermal systems
• Air-source heat pumps (including air-to-air)
• Ground-source heat pumps
• Home battery storage systems
• Heat batteries
• Cavity wall insulation
• Solid wall insulation
• Loft and roof insulation
• Underfloor insulation
• Smart heating controls
• Draught proofing

Long-term Goals

The government has set specific targets for the plan to achieve by 2030.

• Lift 1 million families out of fuel poverty
• Upgrade 5 million homes
• Triple the number of homes with rooftop solar
• Ensure 70% of heat pumps installed are manufactured in the UK
• Create 180,000 jobs in energy efficiency and clean heating
• Reduce reliance on imported fossil fuels