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The UK government published the Warm Homes Plan in January 2026. It's described as the biggest public investment in home upgrades in British history, with £15 billion earmarked to cut energy bills, reduce fuel poverty, and get more homes off gas.
This guide explains what's confirmed, what's still being worked out, and what you can actually do right now to save money on solar panels or a heat pump.
What is the Warm Homes Plan?
The Warm Homes Plan is the government's overarching strategy for improving the energy efficiency of UK homes. It brings together several existing and new funding streams under one programme, with the aim of upgrading 5 million homes by 2030.
It's not a single scheme you apply for directly. It's a collection of grants, loans, and regulations that work together. Understanding which bit applies to you is the key thing.
| Scheme: | Who it's for: | What's available: | Status: |
|---|---|---|---|
| Boiler Upgrade Scheme (BUS) | All UK homeowners | £7,500 grant for air to water heat pumps, £2,500 for air to air heat pumps | Open now |
| ECO4 | Low income households on qualifying benefits | Free insulation, heat pumps, and solar panels | Open until December 2026 |
| Warm Homes: Local Grant | Low income homeowners, EPC D to G | Upgrades up to £15,000 via local council | Rolling out from 2026 |
| Warm Homes Fund (loans) | All homeowners | Low or zero interest loans for solar, batteries, heat pumps | Details expected later 2026 |
| 0% VAT | All UK homeowners | No VAT on solar panels, battery storage, heat pumps, and installation | Open now, confirmed until 2027 |
Heat pump grants: what's confirmed right now
The Boiler Upgrade Scheme is the most straightforward support available and it's open now. You don't need to be on a low income to qualify.
• £7,500 grant for air to water (hydronic) heat pumps. This is the standard air source heat pump that heats your home and hot water through radiators or underfloor heating.
• £2,500 grant for air to air heat pumps. These are a new addition to the scheme in 2026. Air to air systems provide heating and cooling but don't heat water, so they're usually a secondary system.
• No EPC insulation condition. The previous rule requiring you to have no outstanding insulation recommendations on your EPC before accessing the grant was removed in April 2026. This opens the scheme to a much wider group of homeowners.
Your installer applies for the BUS grant on your behalf as part of the installation process. OVO handles the entire application. You receive the grant as a reduction in your installation cost, not as a separate payment.
The BUS is confirmed through to 2029 or 2030 with a total budget of £2.7 billion. Annual allocations are set to increase gradually, so availability should improve over the life of the scheme.
Solar panels: what the Warm Homes Plan means for you
Solar panels don't have a direct grant equivalent to the BUS right now. But the Warm Homes Plan includes two things that matter.
Free solar for low income households
If your household income is below £36,000, you live in a qualifying postcode, or you receive certain benefits, you may be eligible for a free solar and battery installation through ECO4 or the Warm Homes Local Grant. These schemes are delivered through local councils, so eligibility and availability vary by area.
ECO4 is confirmed to run until December 2026. The Warm Homes Local Grant is rolling out from 2026 as the successor to ECO4 for low income households.
Government backed loans for everyone else
For homeowners who don't qualify for free support, the government is developing a low or zero interest loan scheme through the £5 billion Warm Homes Fund. The details on interest rates, loan terms, and how to apply are still being confirmed and are expected later in 2026.
In the meantime, OVO offers solar panel finance through Tandem Bank with fixed rate lending, letting you spread the cost of your installation with no upfront payment.
0% VAT on solar panels
This is available right now and applies to everyone. Solar panels, battery storage, and their installation are all zero rated for VAT. On a typical 4kW solar and battery system costing around £12,000, that's a saving of around £2,000 compared to standard rated VAT.
What has already changed in 2026
The Warm Homes Plan has already triggered some changes that are worth knowing about.
| Change: | Date: | What it means: |
|---|---|---|
| BUS EPC insulation condition removed | April 2026 | You no longer need to insulation recommendations on your EPC before applying for the heat pump grant |
| GBIS closed | 31 March 2026 | The Great British Insulation Scheme has ended. No successor yet for standalone insulation grants |
| ECO4 extended | Confirmed January 2026 | ECO4 now runs until December 2026 rather than ending in March 2026 |
| £150 energy bill reduction | April 2026 | Average of £150 removed from household energy bills as part of the Autumn Budget measures |
| Future Homes Standard | Q1 2026 | All new build homes must include solar panels as standard |
| Air to air heat pumps added to BUS | January 2026 | £2,500 grant now available for air to air systems for the first time |
What's still to be confirmed
The Warm Homes Plan is a long term programme and several parts of it are still being worked out.
• The full details of the Warm Homes Fund loan scheme, including interest rates, loan terms, and application process, are expected later in 2026.
• The exact income thresholds and eligibility criteria for the Warm Homes Local Grant are still being finalised by local councils.
• The new Warm Homes Agency, which will act as a single point of contact for home upgrade advice, is expected to start delivering services from 2027.
If you're waiting for the loan scheme before getting solar panels, you could be waiting until late 2026 or into 2027. If the financial case for solar works for you now using existing finance options, waiting isn't necessarily the right call.
Am I eligible for Warm Homes Plan support?
| Your situation: | What you can access: | How to apply: |
|---|---|---|
| Homeowner, any income, want a heat pump | £7,500 BUS grant (or £2,500 for air to air) | Through your installer. OVO applies on your behalf. |
| Homeowner, income below £36,000 or on benefits, EPC D to G | Free upgrades via ECO4 or Warm Homes Local Grant | Check eligibility with your local council or energy supplier |
| Homeowner, any income, want solar panels | 0% VAT, OVO finance, future government loan scheme | Get a quote from OVO now. Loan scheme details expected later 2026. |
| Private renter | Your landlord must meet EPC Band C by October 2030 | Contact your landlord or local council |
| Social housing tenant | Whole street retrofit programmes via local authority | Contact your housing association or local council |
Is now a good time to get solar panels or a heat pump?
The answer is yes, for most homeowners. The Warm Homes Plan confirms the direction of travel, but the support that's available right now is already meaningful.
For heat pumps, the £7,500 BUS grant is open and the EPC insulation condition has been removed, making it easier to qualify than it was six months ago.
For solar panels, 0% VAT applies now, the financial case is strong with current electricity prices, and waiting for the government loan scheme means potentially waiting another year before you start saving on your bills.
Every home is different. The best starting point is to understand what your specific property would generate and save before making a decision.
Frequently asked questions
Is the Warm Homes Plan available to apply for now?
Parts of it are open now. The Boiler Upgrade Scheme (BUS) heat pump grant is open and being processed. ECO4 free upgrades for low income households are open until December 2026. The government backed loan scheme for solar panels is still being developed and is expected later in 2026.
Do I need a low income to get the £7,500 heat pump grant?
No. The Boiler Upgrade Scheme is universal, with no means testing. Any homeowner in England or Wales can apply, regardless of income.
Has the EPC insulation requirement been removed?
Yes, as of April 2026. You no longer need to have insulation recommendations on your EPC before accessing the BUS heat pump grant. This change opened the scheme to a significantly wider group of homeowners.
What happened to ECO4?
ECO4 has been extended to December 2026. It was due to end in March 2026 but was given a nine month extension. It covers free insulation, heat pumps, and solar panels for low income households on qualifying benefits. There will be no ECO5. ECO4 is being replaced by the Warm Homes Local Grant as the delivery mechanism changes from energy supplier funding to direct government grants.
When will the solar panel loan scheme be available?
The government has confirmed a £5 billion Warm Homes Fund that will provide low or zero interest loans for solar panels, batteries, and heat pumps. The government has confirmed a £5 billion Warm Homes Fund that will provide low or zero interest loans for solar panels, batteries, and heat pumps. The details on interest rates, loan terms, and how to apply are expected to be confirmed later in 2026. In the meantime, OVO offers interest free finance on solar panel installations, so you can spread the cost without waiting for the government scheme to launch.
Does the Warm Homes Plan apply in Scotland and Wales?
The Boiler Upgrade Scheme covers England and Wales. ECO4 covers Great Britain. Scotland has its own Home Energy Scotland programme with separate grants and interest free loans. Wales has the Nest programme for eligible households.
Get a free quote from OVO
If you're thinking about a heat pump or solar panels, the best starting point is a free survey and quote from OVO. We'll tell you exactly what your home would generate and save, what grants you qualify for, and what the monthly finance payments would look like if you don't want to pay upfront.