The Warm Homes Fund is the third strand of the government's Warm Homes Plan — a £5 billion loan fund for households who want to upgrade their home's energy efficiency but don't qualify for the grant.
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Status — May 2026
What is the Warm Homes Fund?
A proposed £5 billion low- or zero-interest loan scheme that will allow households to finance solar panels, battery storage, insulation and heat pumps without an upfront capital outlay. Unlike the WH:LG, the fund is expected to be available to a wider income range — households who earn too much to qualify for the grant but still find upfront costs prohibitive.
How is it different from the Warm Homes Local Grant?
| Warm Homes Local Grant | Warm Homes Fund (loans) | |
|---|---|---|
| Type | Grant — no repayment | Loan — repaid over time |
| Income condition | ≤£36,000 | Income-tested (TBC) |
| EPC condition | D–G | TBC |
| Amount | Up to £30,000 | TBC — expected £5,000–£20,000 |
| Repayment | None | Low/zero interest — terms TBC |
| Status (May 2026) | Live | Not yet open |
Who is the Warm Homes Fund likely to be for?
Based on government announcements, the fund is aimed at the 'squeezed middle' — households who don't qualify for the income-based grant but can't easily fund a £6,000–£15,000 home energy upgrade from savings. It's intended to remove the capital barrier while ensuring the improvement is financially self-sustaining through bill savings.
What can you use the Warm Homes Fund for?
- Solar photovoltaic panels
- Battery storage
- Air source heat pumps
- Insulation
The loan would be repaid from energy bill savings, potentially through a mechanism linked to the property's energy account — similar to the pay-as-you-save model of the old Green Deal. Interest rates expected to be significantly below commercial rates.
Don't wait for the Warm Homes Fund
Check your grant eligibility now — many households qualify who think they don't.
What should I do now?
Option 1 — Check whether you qualify for the grant
Many households who think they earn too much actually fall within the £36,000 threshold when all incomes are assessed. Alliant Energy offers a free eligibility check on 0800 088 4286.
Option 2 — Consider private solar now at 0% VAT
Alliant's packages start at £5,999 and include battery storage as standard. With energy bill savings, the payback period is 8–12 years.
Frequently asked questions
Has the Warm Homes Fund launched yet?
Not as of May 2026. The government confirmed the £5bn fund but eligibility criteria and launch dates were still being finalised.
Is the Warm Homes Fund a grant or a loan?
A loan. Unlike the Warm Homes Local Grant, the fund must be repaid — though at low or zero interest. The WH:LG is a grant with no repayment requirement.
Can I get the Warm Homes Fund and the Warm Homes Local Grant?
Likely not for the same measures. The fund appears designed for households who don't qualify for the grant. Check your grant eligibility first.
Related Warm Homes Plan guides
