Warm Homes Plan 2026: Complete Guide to Solar Grants and Heat Pump Funding
The Warm Homes Plan is a £15 billion UK government initiative launched on 21 January 2026 to upgrade 5 million homes by 2030. Low-income households can receive up to £30,000 in free solar panels, battery storage, heat pumps, and insulation.
What Is the Warm Homes Plan?
The Warm Homes Plan delivers the largest home energy upgrade programme in British history. Prime Minister Keir Starmer described the initiative as a "rooftop revolution" that will triple solar installations nationwide by 2030.
Key targets:
The scheme addresses three groups: low-income households receiving free upgrades, homeowners accessing grants and loans, and renters protected by new landlord requirements.
Three Pillars of the Warm Homes Plan
The £15 billion investment divides into three funding routes.
Pillar 1: Free Upgrades for Low-Income Households
Households earning below £36,000 per year or receiving means-tested benefits qualify for fully funded installations through the Warm Homes: Local Grant. This £5 billion allocation covers 100% of installation costs.
Covered technologies:
- Solar PV panels (typical value £9,000-£12,000)
- Battery storage systems
- Air source heat pumps
- Insulation (wall, floor, roof)
- Draught proofing
- Smart heating controls
Pillar 2: Grants and Loans for All Homeowners
Homeowners who do not qualify for free installations can access two forms of support.
Boiler Upgrade Scheme (available now):
- • £7,500 grant for air source heat pumps
- • £7,500 grant for ground source heat pumps
- • £2,500 grant for air-to-air heat pumps (from late 2026)
- • Extended to 2030 with £295 million budget
Consumer Loan Scheme (April 2027):
- • £1.7 billion in government-backed financing
- • Zero or low-interest loans for solar panels
- • Removes upfront cost barrier
Pillar 3: New Protections for Renters
Currently, 1.6 million children live in private accommodation with cold, damp, or mould problems. The Warm Homes Plan introduces mandatory energy efficiency standards for landlords.
Key requirements:
- Private rental properties must reach EPC C rating by 2030
- Current minimum standard of EPC E will increase
- Landlords can choose between "smart" or "heat" metrics
- Improvements from October 2025 count towards 2030 cost cap
These requirements should save renters an average of £210 per year and lift 500,000 families out of fuel poverty.
Technologies Covered
The Warm Homes Plan supports a specific range of home upgrade technologies.
Solar PV Panels
Solar panels generate electricity from daylight, reducing reliance on grid power. A typical 4kW system produces around 4,000 kWh per year and can offset 50-70% of household electricity consumption when paired with smart energy use.
Low-income households receive fully funded installations worth £9,000-£12,000. Other homeowners will access government-backed loans from 2027.
Learn About Solar InstallationBattery Storage
Battery systems store excess solar energy for use at night or during peak hours. Pairing solar panels with a battery maximises self-consumption and protects against power cuts.
Battery storage qualifies for free installation under the Warm Homes: Local Grant and will be eligible for Consumer Loan Scheme financing.
Explore Battery OptionsHeat Pumps
Heat pumps extract warmth from outside air and transfer it into your home. Air source heat pumps are three to four times more efficient than gas boilers.
The Boiler Upgrade Scheme provides £7,500 towards heat pump installation for all homeowners replacing fossil fuel heating. From late 2026, a new £2,500 grant will support air-to-air heat pumps.
View Heat Pump OptionsInsulation & Smart Controls
Insulation reduces heat loss and makes renewable heating systems more effective. The Warm Homes: Local Grant covers wall, floor, and roof insulation for qualifying households.
Smart heating controls optimise energy use by learning household patterns and adjusting temperatures automatically. These systems work with heat pumps, solar panels, and battery storage.
The previous requirement to complete all EPC-recommended insulation before accessing heat pump grants has been removed under 2026 rules.
Eligibility Requirements
Eligibility depends on the specific funding route.
Warm Homes: Local Grant (Free Upgrades)
To qualify for fully funded installations:
- Household income at or below £36,000 per year, OR
- Receipt of means-tested benefits (Universal Credit, Pension Credit, Housing Benefit, etc.)
- Property has EPC rating of D, E, F, or G
- Owner-occupier or private renter (landlord permission required)
- Property located in England
Social housing is generally ineligible except for "infill" purposes (capped at 10% of project homes with 50% cost contribution from landlord).
Complete Eligibility CheckBoiler Upgrade Scheme (£7,500 Grant)
To qualify for the heat pump grant:
- Property located in England or Wales
- Replacing existing fossil fuel heating (gas, oil, LPG) or electric heating
- Installation by MCS-certified installer
- No previous BUS grant or other public funding for heat pump
- Not a new-build property (self-builds are eligible)
The EPC insulation requirement has been removed—you no longer need to clear loft or cavity wall recommendations before accessing the grant.
Check BUS EligibilityHow to Apply
Application routes differ by funding type.
Warm Homes: Local Grant
Local councils in England administer the free upgrade programme. The process involves:
- Check eligibility using income or benefit criteria
- Submit application through your local authority
- Provide proof of income, tenancy, or benefits
- Receive contractor survey of your property
- Approve proposed upgrades
- Installation completed at no cost
Note: High demand caused temporary portal closures in late 2025. Applications are expected to reopen in spring 2026.
Boiler Upgrade Scheme
The BUS grant is installer-led—homeowners do not apply directly.
- Contact an MCS-certified installer (such as Greentech Renewables)
- Receive home survey and quote showing grant deduction
- Agree to proceed with installation
- Installer applies to Ofgem for grant voucher
- Installation completes within 3 months (6 months for ground source)
- Installer redeems voucher; you pay net amount
What the Warm Homes Plan Means for Greater Manchester
Greentech Renewables serves homeowners across Greater Manchester and the North West. As MCS-certified installers, we can access both Boiler Upgrade Scheme grants and support applications to the Warm Homes: Local Grant.
For Low-Income Households
We can advise whether you qualify for free solar panels and battery storage through your local authority, then complete the installation once approved.
For All Homeowners
The £7,500 heat pump grant applies immediately through our installation service. We deduct the grant from your invoice—you never pay the full price.
For Those Wanting Solar Now
While the Consumer Loan Scheme launches in 2027, our 0% finance options already allow you to spread costs with no interest over 1-2 years.
Frequently Asked Questions
Ready to Take Advantage of the Warm Homes Plan?
Get your free, no-obligation quote today. Our MCS-certified team will help you access the grants and funding you're entitled to.
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