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The Warm Homes Plan – What the Latest Home Upgrade Programme Means for You

ByRenewable Heating

The UK Government has announced what it is calling the largest home energy upgrade programme in British history. The new Warm Homes Plan, led by the Department for Energy Security and Net Zero, commits £15 billion to improving how homes across the UK are heated, insulated and powered.

For households struggling with high energy bills, and for anyone considering solar panels, heat pumps or insulation, this marks a clear shift in direction. Instead of short-term fixes, the focus is now on permanently lowering bills by improving the homes themselves.

At Renewable Heating Wales, we see this as a great next step – but only if it is delivered properly.

Why this announcement matters

Energy bills remain high not because people use too much energy, but because millions of UK homes leak heat and rely on expensive fossil fuels. Insulation rates collapsed over the past decade, and many households were left exposed when gas prices surged.

The Warm Homes Plan directly tackles this problem by funding upgrades that reduce energy use altogether, rather than simply subsidising bills year after year.

The Government estimates the programme could upgrade up to five million homes by 2030 and lift as many as one million households out of fuel poverty.

What support is actually being introduced?

Rather than a single scheme, the plan is built around three clear strands.

1. Fully funded upgrades for low-income households

Households on lower incomes will be eligible for complete upgrade packages at no cost, based on what their home needs most. This could include insulation, solar panels, batteries or heat pumps, or a combination of these.

For social housing, upgrades may be delivered street by street, improving comfort and bills for entire communities at once.

This part of the plan alone is backed by £5 billion of public funding.

2. A universal offer for homeowners

For the first time, the Government is proposing state-backed low or zero-interest loans for home energy upgrades. These loans will allow homeowners to spread the upfront cost of technologies such as:

  • Solar panels
  • Home battery storage
  • Heat pumps, including air-to-air systems

The loans can be used alongside existing grants, including the £7,500 Boiler Upgrade Scheme for heat pumps.

This is a major shift. As highlighted by MoneySavingExpert founder Martin Lewis, interest-free or very low-interest finance is often the missing link that turns long-term energy savings into something households can actually afford.

The key difference this time will be simplicity. Previous schemes failed because they were complex and poorly explained. If the Warm Homes Plan avoids those mistakes, it could unlock mass adoption.

What this means for solar, heat pumps and insulation

The Warm Homes Plan strongly signals where home energy is heading.

  • Solar panels are expected to become standard on new homes from 2026, driving a rooftop solar boom.
  • Heat pumps remain central, with continued grant support and expanded options such as air-to-air systems that can also provide cooling.
  • Insulation is recognised as foundational. Cutting heat loss is often the biggest single factor in lowering bills, regardless of the heating system used.

Importantly, the plan allows households to choose what works best for their property, rather than pushing a one-size-fits-all solution.

What happens next and when?

While the funding commitment is immediate, some elements will take time to launch. Details of the loan scheme are expected later this year, with rollout likely from 2027.

In the meantime, existing grants remain available, and demand for clean energy technologies continues to grow as costs fall and awareness increases.

Our view on the Warm Homes Plan

At Renewable Heating Wales, we welcome the scale and ambition of this plan. The focus on permanent bill reduction, rather than short-term relief, is exactly what has been missing from UK energy policy.

However, delivery will be everything. Clear advice, trusted installers, and simple access to funding will determine whether this becomes a genuine success or another missed opportunity.

For homeowners in Wales, this plan reinforces a message we already share with our customers – investing in insulation, heat pumps and solar is one of the most effective ways to future-proof your home against rising energy costs.

Thinking about upgrading your home

If you are considering a heat pump, solar panels or a whole-home efficiency upgrade, now is a good time to start planning. Grants are already available, and future finance options are on the way.

RHW can help you understand what makes sense for your home today, and how upcoming support could fit into your plans.

Get in touch to discuss your options, or keep an eye on our updates as more detail on the Warm Homes Plan is released.