Warm Homes Loan Scheme
The Warm Home Loans Scheme will support private sector lenders to provide low-interest rate finance to homeowners and PRS landlords in the UK who wish to install low carbon home upgrades, including solar PV, batteries and heat pumps. The WHLS will provide a CDEL grant to participating lenders to reduce the principal amount of eligible loans, resulting in a lower interest rate for the borrower.
- Opening date:
- Closing date:
Contents
Summary
The Warm Home Loans Scheme (WHLS) will help lenders to issue loans at interest rates below their market rate by providing a principal reducing grant. Lenders will apply to be part of the scheme as an organisation and if successful will then submit products for approval based on the eligibility criteria outlined in the scheme rules. Once these products are approved the lender can claim the grant for all eligible loans.
The lender retains full operational freedom to design, operate and market products within the scheme as long as they comply with the scheme rules.
Lenders will be required to enter into a Grant Funding Agreement with Department for Energy Security and Net Zero.
Eligibility
The scheme is open to all lenders that meet minimum regulatory, operational, and conduct standards. Applicants must:
Be, or in the process of being, authorised and regulated by the Financial Conduct Authority (FCA) to undertake the relevant lending activities. (Note: Lenders will not have the right to enter into new loan agreements with borrowers if they lose their FCA authorisation/permission to lend.)
Demonstrate sufficient financial and operational capability to design, launch, and administer consumer loan products, including customer servicing, reporting, and complaints handling at a scale appropriate to customer base and targeted customer segments.
Participation is subject to a formal application and assessment process and being authorised and regulated by the FCA for the relevant activities.
Further details on eligibility can be found in the scheme rules.
Objectives
The Warm Homes Loan Scheme’s primary objective is to support Department for Energy Security and Net Zero’s Warm Homes Plan and affordability priorities by reducing the upfront cost barrier of installing low carbon technologies. It will do this by lowering the interest rate of existing green home finance products and encouraging lenders to introduce new products. This is a medium to long term intervention, with secondary aims of encouraging innovation and new product development and achieving market transformation. These objectives will improve the long-term sustainability of the market and help to normalise borrowing for green retrofit, driven by scaling of financing demand.
Dates
First application window opens: 24/06/2026
First application window closes: 17/07/2026
First lender onboarding window: 12/08/2026 - 24/08/2026
Scheme close date: 31-03-2030
How to apply
Register your interest to apply for the Warm Homes Loan Scheme by sending an email to CGL-WarmHomesLoanScheme@energysecurity.gov.uk.
After you register, you will receive a link to a secure SharePoint folder. This will give you access to the application form and details of the supporting evidence you need to provide.When completing the application form, ensure that:
all required sections are completed
the information provide is accurate and supported by evidence where needed
the application meets the requirements set out in the guidance
The application deadline is 5pm on 17 July 2026.