The Warm Homes Plan - The government scheme that could save you up to £30,000

In a bold move to tackle rising energy bills and the UK’s growing climate commitments, the UK government has launched its flagship Warm Homes initiative that could see applicants receive up to £30,000 in grants. 

Designed to make homes across the UK warmer, greener and more energy efficient, the Warm Home Plan promises a significant shift in how we heat and power our homes. 

Whether you’re a homeowner feeling the pressure of fuel costs or a tenant in an inefficient property, this plan could be your golden opportunity to upgrade your home and cut your energy bills, often with little to no upfront cost.

So, what is the Warm Homes Plan?

Announced in April 2025 by the Labour government, the Warm Homes Plan is a major initiative that aims to upgrade the energy efficiency of millions of UK homes by 2028. 

The programme offers generous upfront grants for lower-income households and low-interest loans for others, helping to fund energy-saving measures such as:

• Solar panel installation

• Loft and wall insulation

• Modern electric heat pumps

• Triple glazing and draught-proofing

The plan provides up to £15,000 per home for energy efficiency upgrades (like solar panels, insulation, double/triple glazing, smart controls) and another £15,000 for low‑carbon heating installations (such as heat pumps or storage heaters). The core idea? Make homes warmer to live in, and of course, cheaper to run.  

Who Is Eligible for Help?

You may be eligible for a grant to fund upgrades under the Warm Homes Plan if all of the following conditions apply to you.

• Your household income is less than £36,000 a year 

• If you’re receiving means-tested benefits

• Your EPC score is D or below

  
  

Low Interest Loans

Not eligible for a grant? You might still benefit from a government-backed low-interest loan to make your home more energy efficient. These loans are:

• Backed by the government for security and fair terms

• Repaid via energy savings, meaning many homeowners should see minimal net cost

• Designed to make the transition to clean energy accessible to all income levels

  
  

For many households, the energy savings from solar panels and insulation will offset monthly loan repayments, leaving them financially better off in the long run.

Why Does This Plan Matter Right Now?

As we all know, energy bills have skyrocketed over the past few years, putting pressure on millions of residents. At the same time, the UK must drastically cut its carbon emissions from housing to meet its net-zero targets.

The Warm Homes Plan is not just about saving money; it’s about transforming the UK’s outdated housing stock into a modern, sustainable system for the future.

• It helps households cut bills - Many homeowners could save hundreds each year on their electricity and heating

• It drives green investment - Supporting jobs in solar, insulation, and low-carbon heating

• It targets the least efficient homes - Benefiting those households that need the support the most

  
  

How to Access the Warm Home Plan

The UK government has pledged to streamline the application process to make it accessible for all. Here’s how to get started:

1. Check your eligibility - Your income, housing tenure, and EPC rating will affect whether you’re eligible for a grant or a loan

2. Get quotes from approved installers - These will form the basis of your application

3. Apply through the official Warm Homes portal, or work with a trusted installer to complete the paperwork.

   
   

Whether you’re looking to fully cover your solar installation with a grant or to take advantage of low-interest finance, your first step is getting accurate quotes and advice.

How Much Can You Save with Solar Panels?

With a typical residential solar panel system costing between £5,000-£7,000, the potential savings can be substantial, especially under the new scheme:

• Annual electricity bill savings: £400-£600 (or more, depending on your usage)

• Payback period with a loan: Often less than 10 years

• Income from selling excess energy: Through schemes like the Smart Export Guarantee

  
  

And now, thanks to the Government’s Warm Homes grants and loans, you may not have to pay upfront at all.

How Can You Save with a Heat Pump?

Buying and installing a heat pump typically costs between £11,000 and £20,000. However, with the Government’s Warm Homes Plan offering up to £30,000 in grants (£15,000 for energy-efficiency improvements and up to £15,000 for low‑carbon heating installations), switching to a heat pump could now cost you zero upfront.

This is on top of the Boiler Upgrade Scheme, which can save you up to £7,500.

Once installed, you could then experience savings over time, which can make it a smart move, especially with new government support available:

• Cut annual heating bills by £400–£1,000, depending on your current system and home insulation

• Better EPC rating - a heat pump can contribute to a better rating, making your home more desirable

• Enjoy lower energy use and more stable running costs year-round

  
  

  
  

  

  
  

  
  

In Summary

The Labour Warm Homes initiative is one of the most ambitious home energy upgrade plans the UK has ever seen. It could mean free or low-cost solar panels for millions of homes, especially those struggling with high energy bills.

But as with any government scheme, demand is likely to be high and funds may be limited. If you’re thinking about upgrading your home, the best time to act is now.