What Does the 2026 Warm Homes Plan Mean for UK Homeowners?

The UK government launched the Warm Homes Plan in early January 2026, with a clear aim to help tackle high energy bills and create low-carbon, low-energy homes. It has been described as the UK’s largest green initiative to date, with £15 billion of public funding set to help millions of homeowners save hundreds on their energy bills. “A warm home shouldn’t be a privilege, it should be a basic guarantee for every family in Britain,” says Prime Minister Keir Starmer.

Under the Warm Homes Plan, homeowners will benefit from various levels of funding and loans to retrofit insulation and install green technology such as solar panels, battery storage and heat pumps. It brings together a range of support options depending on household status and income.

Who is eligible & what can they access?

The plan has been divided into three main pillars, which dictate the level of funding households qualify for. These are:

1) Fully-funded upgrades for low-income households

£5 billion of public investment has been set aside to directly help lower income households. Depending on the house’s suitability, they will pay nothing upfront for the installation of:

• Solar panels and solar batteries (worth up to £12,000).
• Insulation upgrades.
• Low-carbon heating solutions such as air source heat pumps (ASHPs).
• Social housing residents can expect street-wide upgrades to help whole neighbourhoods.

NIBE’s  F2040-6 air source heat pump was selected as part of a low-carbon overhaul of this Victorian terraced house, which was also upgraded with insulation and other energy efficiency measures. The setup powers underfloor heating downstairs and radiators upstairs.

2) Options for other households

Even if a household doesn’t qualify for a fully-funded package, there are still options to help reduce the cost of the technology and its installation. These include:

• Zero or low-interest loans for the installation of solar panels, solar batteries and heat pumps. The plan aims to triple the number of homes with solar panels on their rooftops by 2030.
• A continued £7,500 grant under the Boiler Upgrade Scheme (BUS), helping homeowners make the switch from an existing boiler to a low-carbon heat pump.
• A new offer for the installation of air-to-air heat pumps – a different kind of heat pump offering cooling and heating in one.

3) Protections for renters and landlords

Renters will also benefit too, as the plan includes rules for private landlords to make upgrades to their properties. Landlords will be able to access support to make necessary upgrades, which will help an estimated half a million families over the coming years.

Why is the Warm Homes Plan important?

Sustainable heating solutions are a key part of the government’s decarbonisation goals. Solar, heat pumps and batteries, teamed with improved levels of insulation, will help households reduce their energy use and subsequent bills, and increase the electrification of domestic heat sources in the UK.