- Warm Homes Loan Scheme
Nothing upfront for a heat pump or solar panels
The government-backed Warm Homes Loan Scheme offers low and zero-interest loans for clean home energy. Pair it with a Boiler Upgrade Scheme grant and spread what's left over the years. MCS-certified installation by Lacey Heating across Hertfordshire and Essex.
What the loan covers
Government-backed loans are available for the clean energy technologies below, up to these limits. Interest rates are up to 5 percentage points lower than a standard high-street loan, some loans are interest-free, and some can be repaid over as long as 30 years.
Loan limits are set by the government scheme. The amount, rate and term you're offered depend on the lender and their checks.
Air source heat pump
Borrow up to £20,000 for an air-to-water heat pump that heats your radiators and hot water.
Air conditioning (air-to-air heat pump)
Up to £10,000 for air-to-air systems, once MCS certification is available for them under the scheme.
Solar panels
Up to £15,000 for a solar PV system, installed with our MCS-certified partner GreenTech EV & Solar.
Battery storage
Up to £15,000 for a home battery, to store your solar power or charge up on cheaper off-peak electricity.
Ground source heat pump
Up to £35,000 for a ground source system.
From quote to installation in five steps
Free survey and quote
We visit your home, recommend the right system and give you a fixed, itemised quote. Lenders need a quote from an MCS-certified installer, and that's what we are.
Grants first
If you're getting a heat pump, we apply for your Boiler Upgrade Scheme grant and take it straight off the price. You only borrow what's left.
Compare loans and apply
Choose a loan from one of the scheme's participating lenders. They'll run the usual affordability and credit checks. Compare the total amount repayable, the term and any monthly fees, not just the rate.
We install
Once your finance is approved, our team installs your system and gets it running.
Keep your paperwork
We'll give you everything the lender may ask for: your quote, invoice and MCS certificate. Keep these with your finance agreement.
What it could mean for your bills
Figures are government estimates from the Warm Homes Loan Scheme factsheet (October 2026). Your savings will depend on your home, your energy use, your tariff and the loan you choose.
Up to £550 a year
The government estimates a heat pump, solar panels and a battery together could save a household up to £550 a year on energy bills.
A further £300 a year
Add a smart time-of-use tariff and the government estimates you could save up to £300 a year more.
Lower repayments
On a £10,000 loan over seven years, the government estimates borrowers could save up to £285 a year on repayments compared with a typical 8% loan.
Why install with Lacey Heating
MCS certified
Every loan under the scheme needs an MCS-certified installer. Our heat pump installs are MCS certified, and our solar installs are carried out with MCS-certified GreenTech EV & Solar.
Heat pump specialists
Heat pumps are all we do. You get a system designed properly for your home, which is what delivers the savings.
Octopus Trusted Partner and Cosy Accredited
We're an Octopus Trusted Partner and a Cosy Accredited Installer.
Grants handled for you
We take care of the Boiler Upgrade Scheme application, so the grant comes off your quote before you borrow a penny.
Local to Hertfordshire and Essex
Based in Hertford, with servicing and aftercare to keep your system running efficiently for years.
Frequently Asked Questions
Who can apply?
The scheme is open to households across the UK. Lenders run standard affordability, credit and eligibility checks, so approval isn't guaranteed.
How much interest will I pay?
It depends on the lender. Rates are up to 5 percentage points lower than a typical high-street loan, and some loans are interest-free.
How long can I take to repay?
Terms vary by lender, and some run up to 30 years. A longer term lowers the monthly payment but can increase the total you repay.
Can I use the loan with the Boiler Upgrade Scheme grant?
Yes. The grant comes off the price first, and you can borrow to cover the rest.
Who are the lenders?
The first ten are Homeserve (with E.On), HTG Finance, Propensio, Secure Trust Bank, Selina Finance, South Manchester Credit Union, Sunsave, Tandem Bank (with British Gas), The Money Co-op and This Bank. More are expected to join.
Do I have to use a particular installer?
Your installer must be MCS certified. Some lenders only work with specific installers, while others let you choose. Check with your lender before you commit.
Is Lacey Heating a lender?
No. We survey, quote and install, and give you the paperwork your lender needs. Your loan agreement is with the lender.
Where can I get independent advice?
GOV.UK has free advice on making your home more energy efficient: gov.uk/improve-energy-efficiency
Get a quote you can take to a lender
Tell us about your home and what you're thinking of installing. We'll arrange a free survey, apply for any grant you're eligible for, and give you an MCS-certified quote to use with your Warm Homes Loan application.