Warm Homes Plan: the ECO4 successor launching in 2027
The Warm Homes Plan is the government's £15 billion programme to improve the energy efficiency of UK homes. It replaces ECO4 (which closes December 2026) and the Home Upgrade Grant, and is expected to run from January 2027 through to 2030. If ECO4 does not apply to you, the Warm Homes Plan is the scheme to watch.
What is the Warm Homes Plan?
The Warm Homes Plan brings together several energy efficiency funding streams under one umbrella. The government has announced two main delivery tracks:
Warm Homes: Local Grant
Funded by central government and delivered by local authorities in England. Targets owner-occupiers and private renters in the least energy-efficient homes (broadly EPC D or below) whose household income is below approximately 60% of the median — around £30,000–£33,000 depending on household size. A pilot version of this programme ran from April 2025, and solar panels have been the most commonly installed measure (37% of pilot installations), followed by battery storage.
Warm Homes: Social
Delivered through social housing landlords (local authorities and housing associations). Aimed at tenants in social housing with poor energy efficiency ratings. Funding is allocated to landlords to upgrade their housing stock — individual tenants do not apply directly.
What measures will it cover?
Based on announcements and the pilot programme, the Warm Homes Plan is expected to cover:
- Solar PV panels
- Battery storage
- Heat pumps (air source and ground source)
- Insulation (loft, wall, underfloor)
- Double and triple glazing
- Heating controls and smart thermostats
In the pilot, solar panels (37%) and solar batteries (11%) together accounted for nearly half of all installed measures, which suggests they will remain central to the full programme.
How does it compare to ECO4?
ECO4 is funded by an obligation on energy suppliers — they fund it through their operating costs, which is ultimately reflected in bills for all customers. The Warm Homes Plan is different: it is direct government spending (the £15bn is public money), which gives the government more direct control over delivery.
In practice, the experience for eligible households should be similar: an assessment, a recommended set of measures, installation by a certified contractor, and ownership of the installed equipment. The key difference may be in the range of measures available and the generosity of the grant relative to installation costs.
What about interest-free loans?
The Warm Homes Plan is also expected to include a loan component for households who do not qualify for full grants but want to fund improvements at lower-than-commercial interest rates. Details have not been published, but the model being discussed is similar to Home Energy Scotland's current interest-free loan offer (up to £7,500 repayable over up to 12 years).
If your income is too high for an outright grant but you want government-backed financing for solar, this is the track worth monitoring. Scotland already operates this model — see the devolved nation schemes article.
Should you wait or act now under ECO4?
This is the practical question most people are asking. The honest answer: if you qualify for ECO4 now, do not wait.
- ECO4 is a live scheme with funded installers ready to work. The pipeline is busy but moving.
- The Warm Homes Plan eligibility criteria are not finalised. You may or may not qualify under the new rules.
- The January 2027 launch date is a target, not a guarantee. Government scheme launches routinely slip or involve initial limited capacity.
- Solar installations in winter are slower to schedule. Acting now means potentially getting a spring or summer install while generation is highest.
If you do not qualify for ECO4 (your income is above the threshold and you do not receive qualifying benefits), the Warm Homes Plan is unlikely to change the picture significantly — it targets broadly the same income groups. For above-median-income households, the most relevant incentives are 0% VAT and the Smart Export Guarantee.
Frequently asked questions
When does the Warm Homes Plan launch?
The main Warm Homes Plan is expected to launch in January 2027. A pilot programme — Warm Homes: Local Grant — has been running through some local authorities from April 2025 to test delivery. The full programme will be much larger in scale.
Should I wait for the Warm Homes Plan or apply for ECO4 now?
If you qualify for ECO4, act before December 2026 rather than waiting. ECO4 is a live, funded scheme you can access now. The Warm Homes Plan criteria, grant levels, and delivery timeline are not fully confirmed yet. There is no guarantee the Warm Homes Plan will be more generous for your specific situation.
Will the Warm Homes Plan cover solar panels?
Almost certainly yes, based on pilot data showing solar panels were 37% of measures taken under the early Warm Homes: Local Grant programme. However, coverage, grant amounts, and eligibility conditions for the full programme have not been published as of mid-2026.
Who will the Warm Homes Plan target?
The plan is intended to cover social housing residents, lower-income owner-occupiers (broadly defined as households below 60% of median income), and private renters. The government has signalled it wants to reach fuel-poor households and those in the least energy-efficient homes first.