The UK government has unveiled its long-awaited Warm Homes Plan, pledging £15bn ($19bn) over the next five years to support households with solar panels, heat pumps and battery storage, in a bid to cut energy bills and reduce fuel poverty.
The plan aims to triple the number of homes with rooftop solar, lift one million people out of fuel poverty and expand access to low-carbon technologies through a mix of grants and low-interest loans. Ministers said the programme would help create a “rooftop revolution” while supporting emissions reductions from home heating, which accounts for around 18% of UK greenhouse gas emissions.
Under the scheme, the Boiler Upgrade Scheme will be extended to 2029/30, offering £7,500 ($9,400) grants for air-source heat pumps. An additional £600m ($760m) has been allocated to fully fund solar panels and batteries for low-income households, taking total support for this group to £5bn ($6.3bn). Low and zero-interest loans will also be available to households regardless of income.
The government estimates that installing solar panels, a heat pump and a battery in an average three-bedroom semi-detached home could save around £500 a year ($630) on energy bills, although charities have suggested savings could exceed £1,000 ($1,260) in some cases. After subsidies, households installing a heat pump are expected to pay an average of £5,000 ($6,300).
Prime Minister Keir Starmer said warm homes should be “a basic guarantee for every family”, while Energy Secretary Ed Miliband said upgrading homes was central to tackling the cost-of-living crisis and reducing reliance on imported gas.
The plan has been welcomed by the energy and finance sectors as providing long-term policy certainty, though opposition parties raised concerns over running costs and supply chain dependence, particularly on Chinese-made solar panels. The government said it is working to diversify supply chains and stimulate domestic investment.
The Warm Homes Plan also tightens standards for rental properties, requiring landlords to meet a minimum EPC C rating from 2030, with reforms to the EPC assessment methodology expected later this year. New homes will be required to include low-carbon heating, high energy efficiency and solar panels by default under forthcoming standards.
