Could the Warm Homes Loan Scheme help you spread the cost of solar and heat pumps?

Making our homes warmer and cheaper to run is top of mind for homeowners across the UK. The sticking point isn't the technology itself. Most people know that becoming more energy independent cuts carbon and protects against wholesale energy price swings. The real challenge is the upfront cost. Paying thousands of pounds out of pocket simply isn't practical for every household budget.

That's where the Warm Homes Loan Scheme steps in. E.ON is partnering with HomeServe Finance to help UK homeowners install low-carbon technology without the upfront costs hurdle. Through government-subsidised borrowing, you may be able to spread the cost with a 0% interest payment plan.* Upgrading your home heating and generating your own power can be within reach.

*E.ON Energy Installation Services Limited is a credit broker and not a lender. Credit provided by HomeServe Finance Limited. Finance available subject to status, affordability and a credit check. Terms and conditions apply. More info on finance options for solar panels and air source heat pumps.

What is the Warm Homes Loan Scheme?

The Warm Homes Loan Scheme is a government-backed initiative designed to remove the financial friction of getting heat pumps or solar. 

Under the Warm Home Loans Scheme, government funding is provided directly to participating lenders, allowing the lender to offer longer term interest free credit or lower interest-bearing finance products to its customers. This is in contrast to the available government grants, such as the Boiler Upgrade Scheme (BUS) grant1, which are not repayable and can be applied directly to reduce the cost of the solution.  

If you're looking to upgrade your home heating and power, the Warm Homes Loan Scheme offers another route to explore. As long as you own your home and meet the lender's eligibility and credit checks, you can apply for subsidised finance rates to help cover the upfront costs.

Finance payment options available: 0% APR finance and extended interest-bearing finance terms.

Major home improvements are substantial investments. A structured, predictable payment plan may enable you to enhance your living space while keeping your ongoing budget on track.

Payment options under the Warm Homes Loan Scheme are offered directly by HomeServe Finance to eligible customers. You can apply for interest-free terms up to 5 years for solar panels and 6 years for heat pumps, or choose a 10-year term at 4.6% APR if you want smaller monthly payments.

Combine finance with a £7,500 to £9,000 grant.

When it comes to heat pump funding, you don't have to pick between receiving a non-repayable government grant and using subsidised finance. You can combine both.

• The Boiler Upgrade Scheme grant: UK homeowners can secure £7,500 towards the cost of an air source heat pump. If your home is off the gas grid and currently uses heating oil or LPG, you could receive up to £9,000. This is a direct grant, not a loan.

• No red tape on pre-insulation: In the past, households faced strict rules requiring cavity wall or loft insulation before an installation voucher could be approved. Those insulation barriers have been dropped, streamlining your path to an efficient heat pump.

• Financing the remaining balance only: We apply for and deduct the grant value upfront directly from your quote. If your heat pump installation costs £10,500, deducting the £7,500 grant leaves a remaining balance of £3,000. You may be able to finance the remaining £3,000 using the 0% or lower-APR finance plans available through the Warm Home Loans Scheme.

Who is eligible and how to apply.

We believe making your home energy-efficient should be straightforward, from the initial paperwork to the final screw.

Find out if you're eligible for finance with HomeServe. To apply for a Warm Home Loan Scheme product through HomeServe Finance, you'll need to meet the following eligibility criteria:

1. Be a minimum age of 21 when you apply and under 79 years at the time the agreement ends.

2. Be a UK private resident with at least 3 years continual address history and be a named owner of the property where the product is to be installed.

3. Have a minimum individual income of £12,000.

4. Have income that comes through permanent employment (including self employment) of at least 16 hours per week, or other means such as pension or rental income.

5. Make payments by Direct Debit and have a UK bank account held in your name that supports Direct Debits.

6. Have a good credit history.

7. Have a valid email address.

8. I have not received other government funding for this work, except a BUS or Home Energy Scotland Grant.

9. I agree the Government may inspect the property and installation to verify the work completed.

10. Landlords only: the discounted rate is a business subsidy provided under Minimal Financial Assistance (MFA) rules and is subject to a £315,000 limit over three years.

Ready to see how low your monthly repayments could be? Check out our dedicated air source heat pump finance and solar panel finance options to design your setup today.

• 1. The Government’s Boiler Upgrade Scheme is valid for heat pumps that are commissioned from 1 April 2022. £9,000 funding is available for Oil or Liquefied Petroleum Gas (LPG) fueled homes, whilst other eligible properties can claim £7,500 in funding. Unfortunately, new build homes are ineligible for the Boiler Upgrade Scheme. Owner and property eligibility apply. To see the full eligibility criteria and exclusions, visit the Government Boiler Upgrade Scheme web page.
• 2. These finance options are part funded by the UK Government's Warm Homes Loan Scheme, which provides funding to lenders to enable them to offer a lower interest rate or a longer interest free term. To apply for this loan you must not have received other government funding for this work, except a Boiler Upgrade Scheme or Home Energy Scotland Grant. You must also agree the Government may inspect the property and installation to verify the work has been completed. E.ON Energy Installation Services Limited is a credit broker not a lender. Credit is provided by HomeServe Finance and is subject to credit check, status and affordability. HomeServe Finance Limited terms and conditions apply. E.ON Energy Installation Services Limited is a credit broker not a lender and work exclusively with HomeServe Finance Limited who acts as the lender under Firm Reference Number 994955. Any credit is subject to status, affordability and a credit check; HomeServe Finance Limited terms and conditions apply. E.ON Next Energy Limited is an Introducer Appointed Representative of E.ON Energy Installation Services Limited and is authorised and regulated by the Financial Conduct Authority under Firm Reference Number 973651. Zuno Partners Limited is an Appointed Representative of E.ON Energy Installation Services Limited and is authorised and regulated by the Financial Conduct Authority under Firm Reference Number 1043798. E.ON Energy Installation Services Limited is authorised and regulated by the Financial Conduct Authority for credit broking services under Firm Reference Number 750410. Registered in England and Wales under company number 09965944 at Trinity House, 2 Burton Street, Nottingham, NG1 4BX.
• 3. A representative example for 120 month order: £9,695 purchase. Deposit £0. Annual rate of interest 4.48% p.a. Representative APR: 4.6% APR. Total amount of credit £9,695 paid over 120 months as 120 monthly payments of £100.38 at 4.48% p.a. Cost of finance £2,350.60. Total amount payable £12,045.60.
• 4. A representative example for 120 month order: £4,458 purchase. Deposit £0. Annual rate of interest 4.48% p.a. Representative APR: 4.6% APR. Total amount of credit £4,458 paid over 120 months as 120 monthly payments of £47.09 at 4.48% p.a. Cost of finance £1,102.80. Total amount payable £5,650.80.