Warm Homes Plan: Complete Guide for Homeowners (2026)

The Warm Homes Plan is the UK government's biggest home-energy programme in a generation. Published on 21 January 2026, it commits £15 billion of public investment to upgrade up to 5 million homes and lift up to 1 million households out of fuel poverty by 2030. It is not a single application form — it is an umbrella covering several distinct delivery routes, each with its own eligibility rules, technology list, and stage of readiness. This guide maps all of them so you know which one applies to you.

What is the Warm Homes Plan?

The plan brings together existing and new funding streams under a single government programme. At its core it commits direct public money (unlike ECO4, which is funded through an obligation on energy suppliers) to four main routes:

• Warm Homes: Local Grant — grant-funded upgrades for low-income owner-occupiers in EPC D–G homes in England.
• Warm Homes: Social Housing Fund — funding allocated to social landlords to upgrade their housing stock.
• Boiler Upgrade Scheme (BUS) — open-access vouchers for heat-pump and heat-battery installations, extended to 2029/30. For a side-by-side heat pump vs gas boiler cost comparison, see our dedicated guide.
• Warm Homes Fund — £5 billion innovation-finance vehicle to catalyse private-sector retrofit lending.

The government has also signalled intent to consolidate the low-income delivery routes into a single scheme from 2027/28, but both the Local Grant and Social Housing Fund are operating now. For a broader picture of what grants exist alongside this plan, see our complete guide to UK solar grants.

Warm Homes: Local Grant — who qualifies?

The Local Grant is the route most likely to apply to owner-occupiers who own a low-efficiency home. The eligibility criteria set by government are:

• England only. The Local Grant is an England-specific programme. Scotland, Wales and Northern Ireland have their own devolved retrofit schemes.
• Owner-occupiers or private tenants (landlords may be eligible under a separate landlord route).
• Household income under £36,000 per year — the income threshold is set in the government's scheme guidance. Households above this threshold do not qualify for a grant under this route.
• Property in EPC band D, E, F or G — the aim is to bring the property up to at least EPC C.

Delivery is through local authorities, who contract installers. The first wave of funding was allocated in early 2026; contact your local council or search gov.uk for your local authority's scheme to find out whether a referral is currently open in your area.

What the grant covers: Solar PV is an eligible measure under the Local Grant alongside insulation, heat pumps, heating controls and other energy-efficiency improvements. The exact package offered to your household is determined by an assessment — you cannot specify a single measure; installers and assessors determine the recommended whole-house package.

It is important to note that the Local Grant is not available to all homeowners. If your income is above £36,000/year or your property is already EPC C or above, this route does not apply to you. If that describes your situation, the Boiler Upgrade Scheme (if you want a heat pump) or the market solar-installation route (with 0% VAT) are the relevant options.

Warm Homes: Social Housing Fund

The Social Housing Fund is aimed at social tenants — people renting from a local authority or housing association. The funding is allocated directly to landlords rather than to individual tenants, so if you live in social housing you do not apply yourself: your landlord applies and then carries out the works. The plan requires social landlords to bring properties up to at least EPC C where practical. Solar PV is among the eligible technologies under this fund. If you live in social housing and want to know whether your property is in line for an upgrade, the best route is to contact your housing association or council.

The £5 billion Warm Homes Fund

The Warm Homes Fund is a separate £5 billion vehicle within the plan designed to mobilise private finance for retrofit rather than fund individual households directly. Its structure is:

• £1.7 billion allocated to back consumer loans — government money used to reduce the risk for lenders offering retrofit finance to households.
• £300 million supplementary capital investment to further de-risk the market.
• £3.3 billion remaining for innovative finance mechanisms in the retrofit sector — the exact instruments are being developed through an industry Call for Evidence.

The Warm Homes Fund Call for Evidence closed on 1 June 2026. The government will use responses to finalise the design of the loan and innovative-finance products. Household-level loan products backed by this fund are not yet available as of mid-2026 — detailed terms (eligibility, loan size, repayment period, interest rate) had not been published. If you are planning a solar or heat-pump installation and want government-backed finance, the current reality is that the market loan products (installer 0% finance, green home loans from lenders such as Nationwide) are what is available now.

For a detailed look at financing options that are live today, see our guide to interest-free solar panels and green home loans.

Boiler Upgrade Scheme: heat pumps under the Warm Homes Plan umbrella

The Boiler Upgrade Scheme (BUS) sits under the Warm Homes Plan and is the most accessible, currently live grant route for households that do not qualify for a means-tested grant. Grant amounts from Ofgem as of 2026:

• £7,500 off an air-source heat pump (air-to-water), ground-source heat pump, or water-source heat pump.
• £2,500 off an air-to-air heat pump — newly eligible from 2025.
• £2,500 off a heat battery — a thermal storage device, newly eligible from 2025.
• £5,000 off a biomass boiler in off-gas-grid properties.

BUS is not means-tested — any homeowner (owner-occupier or landlord) in England, Scotland or Wales can apply, regardless of income. Properties must be in England, Scotland or Wales; Northern Ireland has a separate scheme. The BUS is funded with £2.7 billion through 2029/30, so it is not disappearing soon. The government target is 450,000 heat pump installations per year by 2030.

To access the BUS grant, you do not apply directly. An MCS-certified heat pump installer applies on your behalf at the point of installation. The grant is deducted from your invoice — you pay the net amount. If you are considering pairing solar with a heat pump, the BUS grant makes the combination significantly more affordable. Read our in-depth guide to the best air source heat pumps in the UK to understand what the £7,500 grant buys.

What the Warm Homes Plan does and does not cover for solar

Solar PV is a named technology within the plan. The table below summarises the position for homeowners as of mid-2026:

What to note: The plan does not offer a direct, open-access solar grant to all homeowners — that is a common misconception. Grant-funded solar remains targeted at lower-income households through the Local Grant and ECO4. If your income is above the threshold, the relevant market incentives are 0% VAT (saving 20% of your install cost), the Smart Export Guarantee (paid for your surplus exports), and — when it launches — government-backed loans from the Warm Homes Fund.

How does the Warm Homes Plan compare to ECO4?

ECO4 is the predecessor programme. Key differences:

• Funding source: ECO4 is funded through an obligation on energy suppliers, ultimately reflected in bills. The Warm Homes Plan is direct government spending from public funds.
• Scope: ECO4 is narrower — it requires qualifying means-tested benefits in the household. The Warm Homes Plan targets a somewhat broader group (the Local Grant uses an income threshold of £36,000/year rather than benefits entitlement).
• Closure: ECO4 closes in December 2026. If you currently qualify for ECO4, act now rather than waiting for the Warm Homes Plan to consolidate the low-income routes in 2027/28.
• Technology range: Both cover solar PV, insulation and heat pumps. The Warm Homes Plan has a broader stated ambition around heat batteries and smart controls.

If you think you might qualify for ECO4 today, read our detailed guide to free solar panel grants for low-income households.

Should you wait for the Warm Homes Plan or act now?

This is the question most homeowners are asking. The honest answer depends on your situation:

If you qualify for ECO4 — act now

ECO4 is a live, funded scheme with an active installer network. It closes in December 2026. The means-tested grant routes under the Warm Homes Plan are not expected to be unified and fully operational until 2027/28. Waiting introduces real risk that you miss ECO4 without gaining anything from the Warm Homes Plan.

If you want a heat pump — apply via BUS now

The Boiler Upgrade Scheme is funded, open and live. There is no advantage to waiting — the £7,500 grant is available to you today and the scheme is confirmed to 2030.

If you want solar panels and your income is above £36,000/year

The grant routes in the Warm Homes Plan do not apply to you at this income level. The financial incentives available to you now are: 0% VAT on installation (a 20% saving on materials and labour), the Smart Export Guarantee for export income, and commercial installer finance. The Warm Homes Fund loan product — when it launches — may offer a lower interest rate than market loans, but waiting for it means delaying by at least a year, during which you are not generating or earning from solar.

If you are in social housing

You cannot apply directly — your landlord must initiate the works. Contact your housing association or council to register your interest.

Eligibility checklist

Use this as a quick filter before spending time on applications:

1. England owner-occupier, income under £36,000/year, property EPC D–G? → Check whether your local authority has the Warm Homes Local Grant open in your area.
2. Wants a heat pump or heat battery? → The Boiler Upgrade Scheme is open now — find an MCS-certified installer.
3. On qualifying means-tested benefits, EPC D–G? → ECO4 is more immediate — apply before December 2026.
4. Social housing tenant? → Contact your landlord; you cannot apply directly.
5. Scotland, Wales or Northern Ireland? → Devolved schemes apply: Home Energy Scotland (interest-free loans), Warm Homes Nest (Wales), Warmer Homes NI.
6. None of the above? → 0% VAT + SEG + market finance are your current options. The Warm Homes Fund loan will add another route when it launches.

Key figures at a glance

• Total commitment: £15 billion of public investment across this Parliament.
• Homes targeted: up to 5 million by 2030.
• Fuel poverty goal: lift up to 1 million households out of fuel poverty by 2030.
• Warm Homes Fund: £5 billion (£1.7bn loans + £300m capital + £3.3bn innovative finance).
• Boiler Upgrade Scheme budget: £2.7 billion to 2029/30.
• Heat pump target: 450,000 installations per year by 2030.
• BUS heat pump voucher: up to £7,500 (air-to-water / ground source / water source).
• Warm Homes Local Grant income threshold: under £36,000/year.