This comprises responses to the questions raised during the session, along with additional questions submitted via the chat.
The detailed Q&A provides further clarity on how the new Warm Homes Loan Scheme will operate ahead of its expected public launch in September 2026. The scheme will use up to £300 million of government funding to reduce interest rates on loans, supporting around £2 billion of private lending for home energy improvements by 2030.
The department confirmed the scheme will work alongside existing support, allowing eligible homeowners installing heat pumps to combine a loan with the Boiler Upgrade Scheme grant. Loans are expected to be available through participating lenders, with both secured and unsecured products, while customers will continue to undergo normal affordability and credit checks.
DESNZ also confirmed that the scheme will initially focus on higher-cost low-carbon technologies, including heat pumps, solar PV, batteries and associated enabling works. Insulation measures are not currently eligible for loan funding, with the Government arguing that many homes are already suitable for heat pumps and that technologies such as solar and batteries can often deliver better value in reducing energy bills.
For installers, participation will require MCS certification, but no additional accreditation, PAS compliance or TrustMark registration beyond existing requirements. Contractors introducing customers to finance products will, however, need the appropriate FCA authorisation where regulated financial activities are involved.
The Government said homeowners will be encouraged to use the forthcoming Home Energy Advice Service to identify the most appropriate support available, whether through grants or loans. The service is expected to become the main source of independent advice, helping consumers understand suitable technologies and available funding routes.
Consumer protection remains a key feature of the scheme. Installations must be carried out by MCS-certified installers, with technical assessments, quality assurance and auditing built into the process. DESNZ also confirmed that lenders will be required to pass the full value of the Government's interest-rate subsidy on to consumers, with auditing and clawback powers available where necessary.
The Q&A also confirms the scheme has been designed to complement, rather than replace, wider Warm Homes Plan initiatives. A new single low-income capital scheme is planned from 2027/28, while the loan scheme is intended to help households that are not eligible for grant funding but still wish to invest in low-carbon home improvements.
The EEA welcomes the additional clarity provided by DESNZ and will continue to work closely with Government and industry to ensure members understand how the scheme will operate, what opportunities it presents for the supply chain and how it can help accelerate the delivery of warmer, greener and more energy-efficient homes across the UK.