UK government offers no- and low-interest loans for heat pumps, solar panels

LONDON — The UK government has launched a Warm Homes Loan Scheme of government-backed no- and low-interest loans for heat pumps, batteries and solar panels, with ten lenders initially offering loans to households in England, Scotland, Wales and Northern Ireland.

The government said it worked with lenders to deliver an up-to-5 per cent reduction in interest rates from regular bank or high street loans, with some loans interest free and up to thirty years to repay in some cases. Supported loans range up to $20,000 (15,000 pounds sterling) for solar panels and up to $46,700 (35,000 pounds sterling) for a ground source heat pump. Homeowners can combine a loan with a grant of up to $12,000 (9,000 pounds sterling) through the Boiler Upgrade Scheme, according to the factsheet.

"These government-supported loans will help families across the UK upgrade their homes with no upfront costs to make them warmer and cheaper to run," Energy Secretary Miatta Fahnbulleh said. The government said this is the first part of the scheme's offer, with further lenders and products expected to join as it develops.