A loan, not a grant
The Warm Homes Loan Scheme in Wales: borrowing for solar
For North Wales homeowners who don't qualify for Nest, the government's loan scheme is the main help with paying for solar, batteries or a heat pump. It's a real scheme with real rules, and it's borrowing.
In brief
The Warm Homes Loan Scheme is described by the government as UK-wide for owner-occupied homes, so it applies in Wales. You borrow from a participating lender, with interest lower than ordinary borrowing according to the government, and repay it in full. The installer must be MCS certified for each measure financed. It isn't a grant.
Checked at source on 3 November 2026 · An independent guide from SEO-DONS LTD, not the Welsh Government, Nest or a council
How it works
A government scheme, delivered by lenders
The Warm Homes Plan, published in January 2026, made loans the main form of help for households that can pay. The Warm Homes Loan Scheme is how that works: the government sets the rules and supports the lending; participating lenders make the loans, check affordability and collect repayments. The government's factsheet of 27 October 2026 describes it as open UK-wide for owner-occupied homes, and that includes Wales.
The scheme can finance solar panels, batteries and heat pumps, each up to a maximum set in its rules. The installer must be MCS certified for the specific measure, which matters because solar PV, battery storage and heat pumps are separate MCS technologies. And only approved lenders may use the scheme's branding, so the name itself is something you can check against GOV.UK's list.
In Wales
How it fits with the Welsh routes
Nest first. If your household might meet one of Nest's routes, check that before borrowing: a Nest package is at no cost to eligible households and can include solar.
Heat pumps. The Boiler Upgrade Scheme's £7,500, or £9,000 for oil or LPG homes until March 2027, comes off a heat pump's price; a loan can cover what's left, and any solar alongside.
Everyone. Installed solar, batteries and heat pumps in a home are zero-rated for VAT until 31 March 2027, so the amount borrowed is for a VAT-free price until then.
See Nest and the Boiler Upgrade Scheme.
Ways to pay
The loan scheme against the alternatives in Wales
| Nest (if eligible) | Warm Homes Loan Scheme | Savings | Other borrowing | |
|---|---|---|---|---|
| Repaid? | No | Yes | No | Yes |
| Who it's for | Low-income owners and private tenants on Nest's routes | Owner-occupied homes | Anyone | Depends on the lender |
| Who picks the installer | The Nest team | You, MCS certified for each measure | You | You |
| Checks | Benefits, health, income, EPC | The lender's credit checks | None | The lender's |
Before you borrow
Questions for the lender and installer
- Is the lender on GOV.UK's list for the scheme?
- What is the total amount repayable, and over how long?
- Is the installer MCS certified for each technology in the quote?
- Does the quote show VAT at 0% for installed equipment before 1 April 2027?
- What happens to the loan if I sell the home?
- How long is the cooling-off period, and how do I use it?
Repaying it
What pays the loan back
Loan repayments come from your income; the panels change your electricity bills. In North Wales a south-facing kWp makes roughly 883 to 995 kWh a year by PVGIS's estimates for the six administrative towns. The more of that you use as it's generated, the more it reduces what you buy; the rest earns export payments under the SEG. Ask any installer for a written estimate showing how the figures were worked out, and don't borrow on the strength of one tariff. See solar yield in North Wales.
This site
We don't arrange credit
North Wales Solar Panel Grants is an independent guide published by SEO-DONS LTD. We don't name lenders, quote rates or broker loans. Start from GOV.UK's page for the scheme, which lists the participating lenders, and treat any finance offer that claims to be part of the scheme with care until you've checked the lender there.
Loan scheme questions
Can I use the Warm Homes Loan Scheme in Wales?
Yes. The government describes it as UK-wide for owner-occupied homes. You apply to a participating lender listed on GOV.UK.
Is it a grant?
No. It is a loan you repay in full. The government says interest is lower than ordinary borrowing, but each lender sets its terms and runs its own checks.
Should I check Nest first?
Yes. If your household might meet one of Nest’s routes, a Nest package could pay for some or all of the work at no cost. Borrow only after ruling that out.
Does this site recommend lenders?
No. We don’t name lenders, quote rates or arrange credit.
Off-gas homes
Loans for a heat pump in an oil or LPG home
For an owner replacing oil or LPG, the Boiler Upgrade Scheme's £9,000 comes off a heat pump's price until March 2027; the loan scheme can finance the remainder, and any solar or battery alongside it, if the installer is MCS certified for each technology. Ask for a quote that shows each item, the scheme deduction and the amount to be borrowed separately, so you can see exactly what the loan is paying for and compare it with other quotes on a like-for-like basis.
Compare
Borrowing in context
Before committing to a loan, compare the total repayable with the system's realistic value over its life, and with paying from savings if you have them. A loan that's comfortably affordable for a well-designed system can make sense; one that depends on optimistic estimates or stretches your budget doesn't. If finance is offered through an installer, ask whether it's part of the government scheme at all, and check the lender on GOV.UK.
Checked against
- Warm Homes Loan Scheme factsheet (27 October 2026) (GOV.UK), read 3 November 2026
- Warm Homes Loan Scheme rules, version 3, September 2026 (PDF) (DESNZ), read 3 November 2026
- The Warm Homes Plan (January 2026) (GOV.UK), read 3 November 2026
- find a certified installer (MCS), read 3 November 2026
- Warm Homes Nest scheme annual report 2024 to 2025 (Welsh Government), read 3 November 2026
- VAT Notice 708/6, energy-saving materials (HMRC), read 3 November 2026
- PVGIS solar estimates (SARAH3, 2005 to 2023) (EU Joint Research Centre), read 3 November 2026
- SEG guidance for generators (PDF) (Ofgem), read 2 November 2026
Not sure which scheme, if any, fits your home?
Tell us which council area you're in and what you're looking into. Your message reaches SEO-DONS LTD, the publisher of this guide, and we answer by email. We're not a scheme and can't approve anything, but we can point you to the right one.
What happens next
- Your message reaches SEO-DONS LTD, which publishes this guide.
- We reply by email with the scheme page that fits, if there is one.
- Any application is between you and that scheme.