New Government Loan Scheme: Up to £15,000 for solar panels and £15,000 for battery storage
The UK Government has announced a new Warm Homes Loan Scheme, offering homeowners access to interest-free and reduced-interest loans to help fund energy-saving improvements, including solar panels and electrical battery storage.
Announced on 27 October 2026, the scheme aims to make renewable energy more affordable by allowing eligible homeowners to spread the cost of installation rather than paying the full amount upfront.
Under the scheme, homeowners may be able to access loans of up to £15,000 for solar panels and up to £15,000 for electrical battery storage. These are separate technology limits, with the amount available depending on the lender’s eligibility and affordability assessments.
The scheme is available throughout the UK, including Scotland, and provides another opportunity for households looking to reduce their energy bills and invest in renewable technology.
Ideal Electrical Solutions specialise in solar PV and battery storage installations across Edinburgh, the Lothians and surrounding areas. As an MCS-certified installer, we provide professional system designs, installation, commissioning and certification.
How does the Warm Homes Loan Scheme work?
The government has partnered with ten initial lenders to provide more affordable finance for qualifying home energy improvements.
Participating lenders will offer interest rates reduced by up to five percentage points compared with their standard lending products. Some providers will offer interest-free loans, while others will offer reduced-interest finance. Repayment periods vary between lenders, with certain providers potentially offering terms of up to 30 years. All loans are subject to normal credit checks, affordability assessments and individual lending conditions.
Importantly, these are loans rather than grants, meaning the borrowed amount must be repaid.
Some lenders allow homeowners to choose their own MCS-certified installer, while others require installations to be arranged through approved partners.
Installing solar panels – loans of up to £15,000
Solar panels help to reduce electricity bills by generating renewable electricity directly from daylight. Electricity produced by the panels can be used within the home, reducing the amount purchased from the grid, while surplus electricity may be exported for payment through an eligible export tariff.
The new scheme supports loans of up to £15,000 towards qualifying solar PV installations, making solar energy more accessible to homeowners who would prefer to spread the installation cost. We provide complete solar panel installations, from the initial design through to commissioning and certification.
We install high-performance solar panels on suitable pitched and flat roofs, including traditional roof-mounted and integrated in-roof systems. We can also incorporate panel optimisers where shading is an issue, bird protection mesh and hybrid inverters that allow battery storage to be added. Every system is designed around the property’s roof space, orientation and electricity consumption. We provide estimated annual generation figures and manage the necessary DNO applications, including G98 and G99’s where applicable.
Homeowners can apply for a Smart Export Guarantee (SEG), which helps eligible households get payments for surplus electricity exported to the grid.
Electrical battery storage – loans of up to £15,000
Another part of the Warm Homes Loan Scheme is the inclusion of electrical battery storage, with a separate supported loan limit of up to £15,000.
Installing battery storage allows homeowners to store electricity for use later, helping reduce reliance on expensive peak-rate electricity.
When combined with solar panels, batteries can store surplus electricity generated during the day and release it during the evening or overnight.
However, battery storage can also be installed without solar panels.
With a suitable time-of-use electricity tariff, homeowners can charge their batteries overnight when electricity is cheaper and use that stored energy during more expensive daytime periods. For example, a household paying 6.6p per kWh overnight and 27p during the day could make substantial savings by shifting electricity consumption between these periods. Actual savings will depend on electricity usage, battery efficiency and tariff arrangements.
We install battery storage systems from manufacturers including AlphaESS and Tesla Powerwall. We can provide systems ranging from approximately 5 kWh to larger installations exceeding 40 kWh, depending on the property’s electricity requirements.
We can also design compatible systems with backup power functionality, allowing selected circuits or, where suitable, larger parts of the property to receive electricity during a power cut. This requires additional equipment and must be incorporated into the system design.
Which banks and finance providers are participating?
The government has confirmed ten initial lenders participating in the Warm Homes Loan Scheme. Each provider offers different finance arrangements, interest rates and repayment terms and not all will allow customers to use an independent MCS-certified installer.
- HomeServe Finance is participating in partnership with E.ON.
- Hometree Finance.
- Propensio.
- Secure Trust Bank.
- Selina Finance.
- South Manchester Credit Union.
- Sunsave.
- Tandem Bank.
- The Money Co-op.
- This Bank.
Can you finance Solar Panels and Battery Storage together?
The government has confirmed separate supported loan limits of £15,000 for solar PV and £15,000 for electrical battery storage.
Homeowners considering a combined installation can therefore explore funding for both technologies, subject to the lender’s products and eligibility requirements. However, this does not mean every applicant will automatically qualify for £30,000 of finance.
At Ideal Electrical Solutions, we can provide itemised quotations for solar panels and battery storage, allowing customers to understand the costs associated with each part of their proposed installation.
Do you need an MCS-Certified installer?
Yes, the government requires qualifying solar PV and battery storage installations funded through the warm homes loan scheme scheme to be completed by MCS-certified installers.
MCS certification demonstrates that an installer meets recognised standards for eligible renewable energy technologies.
Ideal Electrical Solutions is an MCS certified solar PV and battery storage installer, providing professional installations, commissioning, electrical certification and the necessary documentation following completion.
Some lenders allow homeowners to select their own MCS-certified installer, while others work with specific installation partners. It is therefore important to confirm the lender’s requirements before arranging an installation.
How can Ideal Electrical Solutions help?
At Ideal Electrical Solutions, we provide complete solar PV and battery storage solutions tailored to each property.
Whether you’re considering solar panels for the first time, looking to add battery storage to an existing installation or interested in a standalone battery system to take advantage of cheaper overnight electricity, we can assess your requirements and recommend a suitable solution.
Our services include solar panel design and installation, hybrid inverter systems, domestic battery storage, backup power solutions, DNO applications, electrical testing and MCS certification.
We can also provide estimates of solar generation and potential electricity savings to help customers understand the benefits of their proposed installation.
Although Ideal Electrical Solutions does not provide finance directly, we can supply detailed installation quotations and technical information for customers exploring the Warm Homes Loan Scheme.
Get your quotation
The new Warm Homes Loan Scheme provides an opportunity for homeowners across Scotland to invest in renewable energy technology while spreading the initial installation cost.
With government-supported loan limits of up to £15,000 for solar panels and £15,000 for battery storage, eligible households now have more options when considering energy-saving improvements.
At Ideal Electrical Solutions, we provide professional solar PV and battery storage installations throughout Edinburgh, the Lothians and surrounding areas. If you’re considering installing solar panels, upgrading your existing system or adding battery storage to your home, contact our team to discuss the available options.
To arrange a quotation please fill out this form or give us a call us 0131 258 2750 for an initial chat.
To read the official UK government announcement see this page.
