Government to roll out zero-interest loans for heat pumps, solar and batteries
A new Treasury-backed scheme will let households borrow at rates as low as zero percent for heat pumps, solar panels and batteries, though insulation is excluded.
The government plans to introduce a loan scheme that could provide interest rates down to zero percent for residential heat-pump, solar and battery projects, with the Treasury covering up to 20 percent of each loan to lower costs for lenders. Loans will run for a minimum of three years and cap at amounts such as £35,000 for ground-source heat pumps and £15,000 for solar panels or batteries. Insulation is deliberately left out, a gap highlighted by experts who say it limits overall energy-efficiency gains.
Consumer groups warn the “squeezed middle” - households earning too much for means-tested aid but lacking disposable income - may be left behind. The rollout has been delayed and is now slated for after the budget, while the Boiler Upgrade Scheme, which offers non-repayable grants for heat-pump swaps, faces possible reductions to fund defence spending.
Why it matters
Affordable financing could accelerate home decarbonisation, but exclusions risk leaving many households unable to upgrade.
In this story
