by Green Finance Institute | October 27, 2026

• First ten lenders offer loans at point-of-sale, helping more households access solar, batteries and heat pumps
• Loans to help lower energy bills by reducing exposure to energy price volatility
• Loans were developed through the Green Home Finance Strategic Partnership, established in the Warm Homes Plan and co-chaired by GFI and DESNZ, to remove a key barrier to home upgrades
• The industry partnership demonstrates how coordinated action across government, lenders, retailers and consumer groups can turn ambition into implementation

London, UK, 27 October 2026:  UK households can now access low-cost government-backed Warm Homes Loans at point-of-sale for home electrification technologies such as solar panels, batteries and heat pumps, reducing household exposure to energy price volatility. The loans launch following work from the Green Home Finance Strategic Partnership (the Partnership), co-chaired by the Green Finance Institute (GFI) and the Department for Energy Security & Net Zero (DESNZ).

There is growing interest from households to make their homes more energy efficient, with more than 40% of homeowners without solar PV planning to install it in the next decade. However, 70% of those with no immediate plans for green home improvements cite cost as a barrier. By providing financing options at point of sale, more households can access the energy efficiency technologies increasingly available.[1]

The unsecured loans will be offered by ten initial lenders at predominantly point-of-sale and were developed through the Partnership’s cross-sector working groups involving government, credit unions and high street lenders, retailers, consumer groups and delivery organisations. By designing the products directly with delivery partners, they are workable for financial institutions, practical for retailers, and straightforward for consumers from day one.

Loans are provided by participating lenders, who remain responsible for lending decisions, affordability checks and customer eligibility assessments. Initial lenders include: Homeserve (partnering with E.On), HTG Finance, Propensio, Secure Trust Bank, Selina Finance, South Manchester Credit Union, Sunsave, Tandem Bank, The Money Co-op, and This Bank.

The unsecured and secured loans will cover heat pumps, solar PV, battery storage, heat network connections, micro-renewables, including wind turbines and hydroelectric.

In addition to awareness raising and building supply chains, offering financing is a critical lever to delivering on the ambitions of the Warm Homes Plan. The launch of the first tranche of loans represents an important milestone and demonstrates the close collaboration required between government and industry. Government-backed loans are just one part of the green home finance landscape GFI is continuing to scale to expand access for universal financial products.

This immediate tranche of loans focuses on unsecured point-of-sale lending, alongside a smaller number of personal loans and secured lending products, with future phases expanding the range of products and participating lenders.

This scheme forms part of a boarder effort from the Partnership to build a comprehensive market in collaboration cross-with financial institutions, energy providers, consumer groups, and government to scale green home finance solutions helping households access home upgrades to cut bills, and enjoy warmer, cleaner homes.

For lenders interested in applying for the second tranche for loans, the window for expressions of interest is expected to open in the next few months.

Rhian-Mari Thomas, CEO of the Green Finance Institute, said: “Finance should not be the blocker for progress, yet high upfront costs remain a significant barrier to households adopting electrification technologies. That is why the Partnership is working with the green home finance sector to build and diversify the range of financing options available, while continuing to drive demand, smooth the consumer journey, build supply chains and strengthen consumer productions. Our ambition is to make appropriate finance accessible to households across the market, so more people can benefit from lower bills and warmer, cleaner homes.

“Getting these government-backed loans to market required stakeholders across the value chain to coordinate at pace. This kind of radical collaboration will be critical to delivering resilience, adaptation and the wider transition at scale.”

Miatta Fahnbulleh MP, Secretary of State for Energy Security and Net Zero, said: “Energy is an everyday essential that must be affordable for everyone. These government-supported loans will help families across the UK upgrade their homes with no upfront costs to make them warmer and cheaper to run.”

 Lisa Cooke, Managing Director at MCS, said: “With 2026 set to be another record-breaking year for certified renewable installations, it’s clear that more people than ever before are putting their confidence in home-grown energy. The introduction of the Warm Homes Loan Scheme builds on this momentum, helping more households access the benefits of low-carbon technologies.

“Delivering high-quality outcomes for consumers becomes even more important as installation volumes rise. The requirement for all installations delivered under the Warm Homes Loan Scheme to be MCS certified provides that assurance – in the business installing them, the products used, and the protections in place if something does go wrong.”

Gillian Cooper, Director of Energy at Citizens Advice, said:“The high upfront costs of making upgrades have kept warmer homes out of reach for millions of households. This urgently needs to change and this partnership shows how uniting the government and lenders can start unlocking practical financing options.”

Ciara Davies, CEO of The Money Co-op, said: “The Money Co-op is proud to be part of the first tranche of government-backed Warm Homes Loans. As one of the first credit unions to align with the Green Home Finance Principles, we are committed to making fair, affordable finance more accessible through trusted, local lending. Drawing on the Green Finance Institute’s expertise in developing and scaling green home finance, we are delighted to help pave the way for credit unions across the UK to offer government-backed loans, enabling more households to make their homes warmer, cheaper to run and more resilient.”

Ian Corfield, CEO Secure Trust Bank Group, said: “Secure Trust Bank Group is pleased to be among the first lenders taking part in the Warm Homes Loan Scheme. Working with our retail partners through our V12 Retail Finance platform, we can help households spread the cost of energy efficient home improvements at a lower interest rate, making those upgrades accessible to more people.”

Find out more on https://www.gov.uk/government/news/warm-homes-loan-scheme-factsheet

[1]NatWest, Consumer attitudes towards greener homes (2026)