Who is eligible for the Warm Homes Plan?

Eligibility depends on which stream you're applying to. For Warm Homes Local Grant: household income below £36,000/year, OR living in a designated postcode area, OR receiving qualifying benefits; plus home must have EPC D-G; must be owner-occupied or privately rented. For ECO4: at least one person in household on qualifying state benefits; EPC D or below. For the Consumer Loan Scheme (April 2027): all UK homeowners eligible.

Can I get solar panels for free under the Warm Homes Plan?

Yes, if you qualify for ECO4 (fully funded grant with zero cost) or if your Local Grant budget covers the full solar installation cost. For ECO4, the solar system is 100% free. For Local Grants, solar is partially covered up to £15,000 (owner-occupiers) or £30,000 (renters); if your whole package is within that budget, yes, it's free. Otherwise, you pay any overage.

What's the difference between the Warm Homes Local Grant and ECO4?

Warm Homes Local Grant is means-tested (income or postcode eligibility) and offers grants of £15,000-£30,000 depending on tenure. ECO4 is benefits-tested (you must receive qualifying state benefits) and offers 100% funded upgrades with zero cost, but closes 31 December 2026. ECO4 is more generous if you qualify, but time-limited. Local Grant is broader (more people eligible) but may not cover the full cost.

How do I apply for the Warm Homes Local Grant?

First, check if your council is participating at gov.uk/apply-warm-homes-local-grant. If so, contact your council's housing or energy team directly (details on your council website). You'll provide proof of income, EPC, and residency. Your council will recommend an MCS-certified installer who assesses your home and proposes measures. Once approved (usually 4-8 weeks), the installer carries out the work and the council pays them directly. You pay nothing.

Does the Warm Homes Plan cover battery storage?

Yes. Battery storage is an eligible technology under all three Warm Homes streams (Local Grant, ECO4, and the future Consumer Loan Scheme). Early in the year, some councils were reluctant to fund batteries due to cost, but increasingly batteries are approved as part of comprehensive packages alongside solar and heat pumps. A typical grant-funded solar installation now includes 5-10kWh of LiFePO4 storage.

What is the Consumer Loan Scheme and when does it launch?

The Consumer Loan Scheme is a 0% interest financing programme launching in April 2027, designed for all UK homeowners regardless of income. It will offer unsecured loans of £5,000-£15,000+ for solar panels, batteries, and heat pumps, with flexible repayment terms (typically 5-10 years). There is no income cap and no means test — it's open to anyone with reasonable credit and capacity to repay. Details are still being finalised.

Will the Warm Homes Plan replace the 0% VAT on solar?

No. The 0% VAT on solar installation is a separate temporary measure running until 31 March 2027. The Warm Homes Plan grant (whether Local Grant or ECO4) covers the equipment and labour cost, and the 0% VAT relief further reduces the total cost. After 31 March 2027, VAT is expected to return to standard rate (likely 5% or higher). Both incentives can be used together to minimise cost in the current year.

How much can I save with solar panels funded through the Warm Homes Plan?

A typical 4kWp solar system funded via Warm Homes saves £600-£900/year in reduced bills (depending on location and self-consumption behaviour) plus £180-£520/year from Smart Export Guarantee payments at standard rates (10-15p/kWh), totalling £780-£1,420/year. With battery storage, self-consumption rises to 70%, boosting bill savings to £800-£1,200/year. On specialist time-of-use tariffs, SEG income can double. Payback is typically 7-12 years; after that, it's pure savings.

The Warm Homes Plan for 2026 - Solar Panels & UK Funding

The Warm Homes Plan is the UK government’s flagship policy for improving the energy efficiency of homes across England, Scotland, Wales, and Northern Ireland. Announced in 2024 and running through to 2030, the plan commits £13.2 billion of investment towards insulation, low-carbon heating, and — crucially for homeowners considering solar — renewable energy measures including solar panels and battery storage.

The Warm Homes Plan doesn’t operate as a single grant you can apply for directly. Instead, it funds a range of existing and new schemes — principally the Warm Homes Local Grant, ECO4, the Great British Insulation Scheme, and the Boiler Upgrade Scheme — that distribute support to eligible households. Understanding how the plan fits together helps you identify which specific scheme you might qualify for and what level of support is available.

This guide explains what the Warm Homes Plan covers, which schemes it funds that include solar panels, and how to find out whether your household qualifies.

Contents

1 Key Takeaways
2 What Is the Warm Homes Plan?
3 Which Schemes Under the Warm Homes Plan Include Solar Panels?
4 Warm Homes Plan Support for All Homeowners
5 How to Apply for Warm Homes Plan Support
6 Case Study: Nottinghamshire Family Receives Solar Under Warm Homes Local Grant
7 Expert Insights From Our Solar Panel Installers About the Warm Homes Plan
8 Frequently Asked Questions
9 Summing Up

Key Takeaways

The Warm Homes Plan commits £13.2 billion to home energy improvements through to 2030, making it the UK’s largest ever investment in domestic energy efficiency.
Solar panels are an eligible measure under the Warm Homes Local Grant and, in some circumstances, ECO4.
The plan funds grants, not loans — qualifying households receive energy improvements at no cost or reduced cost, not a repayable sum.
Eligibility varies by scheme: some are income-based, some are property-based (EPC D–G), and some operate through local authority discretion.
The plan sits alongside other financial support that applies to all homeowners regardless of income, including the 0% VAT rate on solar installations and the Smart Export Guarantee.

What Is the Warm Homes Plan?

The Warm Homes Plan is a multi-year government spending commitment designed to tackle fuel poverty, reduce carbon emissions from housing, and lower household energy bills. It was announced by the Labour government in 2024 as part of its Clean Energy Superpower Mission and represents a significant scaling-up of spending on domestic energy efficiency compared to previous administrations.

The £13.2 billion figure covers the full period to 2030. In practice, the money is channelled through a combination of national schemes administered by OFGEM and energy suppliers, and locally administered schemes run by councils. The local authority route — primarily the Warm Homes Local Grant — allows councils to tailor delivery to the specific housing stock and demographics of their area, which is why eligibility criteria and available measures vary significantly by location.

The plan’s primary focus is on the fuel-poor — households spending a disproportionate share of income on energy — and on the least energy-efficient homes (EPC D, E, F, and G). But elements of the plan, including reduced VAT on solar installations, benefit all homeowners regardless of income or EPC rating.

Which Schemes Under the Warm Homes Plan Include Solar Panels?

Warm Homes Local Grant

The Warm Homes Local Grant is the most directly relevant scheme for solar panels under the Warm Homes Plan. Administered by local authorities in England, it provides grants of up to £15,000 for owner-occupiers and up to £30,000 for private renters (paid to the landlord) towards energy efficiency improvements including solar panels and battery storage.

Eligibility requires one of the following: combined household income below £36,000 per year, or receipt of a qualifying means-tested benefit. The property must also have an EPC rating of D, E, F, or G. You can apply via the government’s central application page at gov.uk/apply-warm-homes-local-grant, which directs you to your local council’s delivery programme. Not all councils are at the same stage of rollout — some began delivery in late 2024, others are still setting up their local programmes.

ECO4

The Energy Company Obligation scheme (ECO4) requires the UK’s largest energy suppliers to fund energy efficiency improvements in low-income and fuel-poor households. Solar panels are included as an eligible measure under ECO4 when installed as part of a whole-house energy efficiency package — typically alongside insulation and heating improvements.

ECO4 is due to close in December 2026. If your household qualifies — you’re on certain means-tested benefits, or your council has identified your property through the LA Flex mechanism — the scheme can fund solar panels, battery storage, and other measures at no cost to you. Apply through your energy supplier or an ECO4-registered installer.

Great British Insulation Scheme

The Great British Insulation Scheme focuses specifically on insulation measures (loft, cavity wall, solid wall) rather than solar panels. It’s worth including here because insulation and solar work best together — improving your EPC rating through insulation makes a subsequent solar installation more financially effective by reducing total energy demand first.

Warm Homes Plan Support for All Homeowners

Regardless of income or EPC rating, all UK homeowners benefit from elements of the Warm Homes Plan’s broader policy framework:

The 0% VAT rate on solar panel installations applies to all residential installations until at least March 2027. On a typical 4kWp system costing around £7,500, this saves approximately £1,500 compared to the standard 20% VAT rate that applied before April 2022.

The Smart Export Guarantee (SEG) pays all homeowners with solar panels for electricity they export to the grid, regardless of income. Current rates range from 10p to 15p/kWh with standard tariffs, rising to up to 28.60p/kWh during peak periods with smart tariffs like Octopus Flux. A 4kWp system exporting 20% of its generation earns approximately £125–£375 per year in SEG income depending on the tariff chosen.

How to Apply for Warm Homes Plan Support

The application route depends on which specific scheme you’re applying through. For the Warm Homes Local Grant, start at gov.uk/apply-warm-homes-local-grant, which will direct you to your local council. For ECO4, contact your energy supplier directly or use an ECO4-registered installer who will carry out an eligibility check as part of their assessment.

If you’re unsure which scheme you might qualify for, the Energy Saving Trust’s helpline can provide a preliminary assessment based on your income, property type, and EPC rating.

Case Study: Nottinghamshire Family Receives Solar Under Warm Homes Local Grant

Background

A retired couple in a Nottinghamshire village owned a 1970s semi-detached house with an EPC E rating. Their combined income was below £36,000. They had been aware of solar panels but assumed the installation cost was out of reach.

Project Overview

After their local council’s Warm Homes Local Grant programme launched in early 2026, they applied through the council’s delivery partner. A surveyor assessed the property and recommended a 3.5kWp solar system alongside loft insulation top-up and smart heating controls — all funded under the grant up to the £15,000 owner-occupier limit.

Results

The solar installation was completed within six weeks of application approval. The couple now generate approximately 3,000kWh per year, covering around 70% of their electricity needs. Their annual electricity bill fell from approximately £820 to £290, and they receive around £95/year from the Smart Export Guarantee. The EPC rating improved from E to C.

Expert Insights From Our Solar Panel Installers About the Warm Homes Plan

“The Warm Homes Plan has genuinely changed the conversation with qualifying households,” says one of our senior solar panel installers with over 15 years of UK experience. “Previously, a lot of fuel-poor homeowners would approach us and we’d have to tell them the costs were prohibitive even after grants. Now, with the Warm Homes Local Grant reaching up to £15,000 for owner-occupiers, we’re completing full solar plus battery installations at no cost to the homeowner. The key is making sure people know the scheme exists — awareness is still the main barrier.”

Frequently Asked Questions

What is the Warm Homes Plan?

The Warm Homes Plan is the UK government’s £13.2 billion commitment (2024–2030) to improving the energy efficiency of homes across the UK. It funds a range of schemes including the Warm Homes Local Grant, ECO4, and the Great British Insulation Scheme, which provide grants and subsidised installations of solar panels, insulation, and low-carbon heating to eligible households.

Does the Warm Homes Plan cover solar panels?

Yes. Solar panels are an eligible measure under the Warm Homes Local Grant (up to £15,000 for owner-occupiers) and under ECO4 for qualifying households. The plan also supports the broader policy framework that keeps VAT at 0% on solar installations for all UK homeowners until at least March 2027.

Who qualifies for the Warm Homes Plan?

Eligibility varies by scheme. The Warm Homes Local Grant requires a household income below £36,000 or receipt of a qualifying means-tested benefit, plus an EPC rating of D–G. ECO4 has its own eligibility criteria based on benefits and fuel poverty. The 0% VAT on solar installations applies to all UK homeowners regardless of income.

How do I apply for the Warm Homes Plan?

For the Warm Homes Local Grant, apply at gov.uk/apply-warm-homes-local-grant, which directs you to your local council’s programme. For ECO4, contact your energy supplier or an ECO4-registered installer. Availability and lead times vary by local authority.

How much can I get under the Warm Homes Local Grant?

Owner-occupiers can receive up to £15,000 towards energy efficiency improvements including solar panels. Private renters can receive up to £30,000 (paid to the landlord). The exact amount depends on the measures recommended by the surveyor and approved by the local authority.

Is the Warm Homes Plan available in Scotland and Wales?

Yes, but through different schemes. Scotland has the Home Energy Scotland Loan (up to £15,000 interest-free with cashback up to £7,500 for solar) administered by Home Energy Scotland. Wales has the Warm Homes Programme administered by the Welsh government. Northern Ireland has the Affordable Warmth scheme. The UK-wide 0% VAT on solar applies across all four nations.

When does the Warm Homes Plan funding end?

The Warm Homes Plan runs through to 2030, but individual schemes within it have their own end dates. ECO4 closes in December 2026. The Warm Homes Local Grant is expected to continue through the plan period, but specific local programmes may have limited funding windows. Applying sooner rather than later is advisable.

Can I get solar panels for free through the Warm Homes Plan?

Qualifying households can receive solar panels at no personal cost through the Warm Homes Local Grant or ECO4 — the full installation cost is covered by the grant, with no repayment required. This is different from rent-a-roof or free solar schemes where a third party owns the panels. Under Warm Homes Plan schemes, you own the installation outright.

Summing Up

The Warm Homes Plan represents the most significant UK government investment in domestic energy efficiency in a generation. For qualifying households — those with incomes below £36,000, on means-tested benefits, or with EPC D–G rated properties — it opens the door to solar panel installations at no personal cost through the Warm Homes Local Grant or ECO4.

For all other homeowners, the plan’s policy framework maintains the 0% VAT rate on solar installations and underpins the Smart Export Guarantee, ensuring the financial case for going solar remains strong regardless of income level. The time to act is before individual scheme funding windows close — ECO4 ends in December 2026, and Warm Homes Local Grant programmes are filling up fast as councils complete their rollouts.

Updated May 2026