New Government Scheme · October 2026
Warm Homes Loans in Scotland
0% and low-interest loans of up to £15,000 for solar panels, £15,000 for a battery and £20,000 for an air source heat pump — open to homeowners across Scotland, and combinable with the Home Energy Scotland grant. Installed by an MCS-certified installer: that's us.
What the Scheme Is
Low-cost borrowing for clean energy, UK-wide
The Warm Homes Loan Scheme was announced by the Department for Energy Security and Net Zero on 27 October 2026. Participating lenders offer interest-free and low-interest loans — up to a 5% reduction on their usual rates — for solar, batteries, heat pumps and other renewable measures, with repayment terms of up to thirty years in some cases.
The scheme covers England, Scotland, Wales and Northern Ireland, and the factsheet sets no income threshold: eligibility rests on the lender's normal affordability and credit checks, and on the work being carried out by an MCS-certified installer. The government estimates a heat pump, battery and solar together could save a family up to £550 a year, plus around £300 more on a time-of-use tariff.
Read the government factsheetMaximum loan by measure
Amounts from the DESNZ factsheet, 27 October 2026. Air-to-air heat pumps qualify once MCS certification is available for them.
How It Works With Us
Four steps from enquiry to a funded installation
Clyde Net Zero is not a lender and does not arrange the loan — the credit decision is the lender's. What we do is make the installer side effortless.
Free survey & fixed-price quote
We survey your home and produce the itemised quote a lender needs — solar, battery, heat pump or a combination.
Apply to a participating lender
You apply directly to one of the scheme's lenders, who run their normal affordability and credit checks. Some lenders work only with their partner installers; others accept any MCS-certified installer like us.
Grant first, loan for the rest
For a heat pump we apply the Home Energy Scotland grant of up to £7,500 first, so you borrow only the balance.
Installation & MCS certificate
Our MCS-certified team installs and commissions the system. Keep your quote, finance agreement, invoice, proof of purchase and MCS certificate — the lender will ask for them.
Stacking Grant and Loan
A worked example for a Glasgow heat pump
Take a typical air source heat pump installation quoted at £12,000. The Home Energy Scotland grant pays £7,500 of that directly (£9,000 in rural and island areas), leaving £4,500. A Warm Homes Loan covers the balance at 0% or a reduced rate, so there is no upfront payment and the monthly cost is spread over a term you choose with the lender.
For solar there is no grant to stack, but the loan covers the full system and a battery — up to £30,000 combined — and your Smart Export Guarantee payments and bill savings start the day the system is commissioned.
Participating lenders at launch
Ten lenders are named in the factsheet, including Hometree Finance, Tandem Bank, Secure Trust Bank, Selina Finance, Propensio, Sunsave, The Money Co-op, This Bank, South Manchester Credit Union and Homeserve. Some lend only through their own partner installers; others accept any MCS-certified installer.
Not sure which route fits? Our eligibility check takes two minutes and we'll point you to the right grant, lender or finance option — including Phoenix Finance if that suits you better.
Your Questions Answered
Warm Homes Loans: the five things people ask us
Who is eligible for a Warm Homes Loan?
The scheme is open to households across the whole UK, including Scotland. There is no income threshold and no benefits test in the government factsheet: the participating lender runs its normal affordability, credit and eligibility checks, as with any loan. Installations must be carried out by an MCS-certified installer such as Clyde Net Zero.
What does the loan cover, and how much can I borrow?
Up to £15,000 for solar panels, up to £15,000 for an electrical storage battery, up to £20,000 for an air-to-water heat pump, up to £35,000 for a ground source heat pump and up to £20,000 for other micro-renewable systems. Loans are interest-free or low-interest, with lenders offering up to a 5% reduction on their usual rates.
Can I combine it with a grant?
Yes. In Scotland the loan can be combined with the Home Energy Scotland heat pump grant of up to £7,500 (£9,000 in rural and island areas), so the grant reduces the amount you need to borrow.
How do I apply, and who handles the paperwork?
You apply directly to one of the participating lenders, or through an installer that works with them. We provide everything the lender needs from the installer side: a detailed quote, the finance-ready invoice, proof of purchase and the MCS certificate issued on completion.
What are the repayment terms?
Terms are set by the lender and can run up to thirty years in some cases. As a guide from the government factsheet, a £10,000 loan at 8% over seven years costs about £155 a month on a regular loan; the scheme's rate reduction can save up to £285 a year on that example.
Ready to make use of the scheme?
Start with a free survey and quote for solar panels or a heat pump, or check your eligibility first and we'll call you back.