Somerset Council

Warm Homes funding announced to help reduce home energy costs

Front cover of the Government's Warm Homes Plan showing suburban houses with solar panels under a blue sky.The Government’s Warm Homes Plan will support upgrades for up to 5 million homes, helping households save hundreds of pounds on energy bills and lifting up to 1 million families out of fuel poverty by 2030.

Upgrading homes is one of the most effective ways to cut bills for good, and this plan marks an important step in tackling long‑term energy affordability. Installations of home insulation fell by more than 90% between 2010 and 2024, leaving millions of households facing higher energy costs as a result.

Demand for clean home‑energy technologies – such as solar panels and heat pumps – is at a record high. Although prices continue to fall, they remain out of reach for many families. This plan aims to make these technologies more affordable so that more households can benefit.

The Warm Homes Plan prioritises support for low‑income families while offering a universal scheme to ensure everyone can access technologies that cut bills. Homeowners will be able to apply for government‑backed low‑ or zero‑interest loans to install solar panels, driving a national “rooftop revolution”. Loans will also be available for heat pumps and home batteries, making clean energy more accessible than ever.

Low‑income households and those in fuel poverty could receive fully funded solar panel installations or insulation upgrades. New rules will also ensure landlords invest in improvements to reduce bills for renters and social tenants.

Direct support for low-income families

  • Low‑income households will receive free upgrades tailored to their homes, backed by £5 billion of public investment.
  • For example, families could receive fully funded solar panels and a battery system (currently costing £9,000 to £12,000).
  • In social housing, upgrades may be delivered street‑by‑street, lowering bills and improving warmth and comfort for whole neighbourhoods.

An offer for everyone

  • Government‑backed low‑ and zero‑interest loans will help households install solar panels, and every new home will be built with solar panels as standard.
  • The plan will triple the number of homes with rooftop solar by 2030.
  • Heat pumps will be easier to access through a £7,500 universal grant, including the first‑ever offer for air‑to‑air heat pumps, which can also provide cooling in summer.

New protections for renters

  • Around 1.6 million children currently live in privately rented homes affected by cold, damp or mould.
  • The Government says that all rented homes – private or social – must be safe, warm and affordable.
  • Updated protections, combined with fair, phased requirements for landlords, are expected to lift an estimated 500,000 families out of fuel poverty by 2030.

Upgrades available through government schemes

  • Solar panels (photovoltaic and thermal)
  • Heat pumps (air‑source, air‑to‑air and ground‑source)
  • Home and heat batteries
  • Smart controls
  • Insulation (wall, floor and roof)
  • Draught‑proofing

Loans will be available across these technologies, helping more households cut energy waste and lower their bills.

To find out more, visit GOV.UK’s press release ‘Families to save in biggest home upgrade plan in British history’, published 20 January 2026.

You can check whether your home is suitable for heat pumps, solar PV, batteries and other upgrades – and find local installers – via thermly.co.uk.