MCS, grants and export
UK Warm Homes Plan: Solar Grants and 0% Loans Explained
The Warm Homes Plan is the UK government’s £15bn scheme to help households cut energy bills through solar, batteries, heat pumps, and insulation. This guide explains who qualifies, how the application process actually works, and what the 0% loan means if you’re above the income threshold.
Helpful video reference. A UK solar and grants advice channel’s guide “New Solar Grants – What You Need To Know About The Warm Homes Plan” covers the eligibility criteria and application process clearly. Worth watching alongside this page.
1. What the Warm Homes Plan actually is
The Warm Homes Plan replaced the old ECO4 scheme in January 2026. It is funded at £15bn over the current parliamentary term and is the government’s primary mechanism for helping households upgrade to cleaner, cheaper energy. Unlike ECO4, which was energy-company funded, this scheme sits with local authorities and a central portal, giving councils more flexibility to match funding to local need.
Measures covered include: solar PV panels, battery storage, air source heat pumps, insulation (loft, cavity wall, solid wall), and double or triple glazing in some cases. Solar and batteries are now explicitly listed as eligible measures, which was not always the case under the older scheme.
2. Who qualifies for the Local Grant
The Local Grant - the fully funded route - has two conditions, and both must apply:
Local Grant eligibility checklist
- Household income below £36,000 a year (combined income of all adults in the property).
- EPC rating of D or below. Your home’s energy performance certificate must confirm the property is rated D, E, F, or G. Most homes built before 2000 with no recent upgrades will be in this range.
- You do not need to be a homeowner - tenants can apply, though landlord co-operation is needed for most measures.
3. How the application process works
The grant does not come directly from the government to you. The route is:
Step one: Contact your local authority (your council) or register via the government’s Warm Homes Plan portal. Several councils have dedicated energy teams and their own application forms.
Step two: An energy assessor visits to confirm your EPC rating and identify which measures will deliver the biggest carbon and bill reduction. They may also check income eligibility at this point.
Step three: The council refers you to an approved installer from their framework. The work must be done by an MCS-certified installer for solar and battery measures.
Step four: The installer fits the equipment, registers the installation with MCS, and notifies the Distribution Network Operator (DNO) if required. The council releases the grant payment directly to the installer.
What you do not pay for under the Local Grant
If you qualify, the installation cost is fully covered. You pay nothing upfront and nothing on completion. The only exception is if you ask for an upgrade beyond what the assessment recommends - for example, a larger battery than the assessed size - in which case you pay the difference.
4. The 0% loan for households above the threshold
If your household income is above £36,000 a year, you will not qualify for the Local Grant, but you may be eligible for the Warm Homes Loan - a government-backed 0% interest loan for energy improvements. The loan is expected to be available in full from 2027, with a pre-registration process open now.
Unlike an equity release or a personal loan, this is a fixed-term repayment loan at 0% interest, repaid through your tax account or directly. The loan amount covers the same measures as the grant scheme - solar, batteries, heat pumps, and insulation - up to a maximum that is still being confirmed by government.
5. MCS certification is not optional for solar work
Whether you are using the grant, the loan, or paying outright, any solar PV or battery storage installed in the UK must be fitted by an MCS-certified installer if you want to claim the Smart Export Guarantee (SEG) export payments. For grant-funded work under the Warm Homes Plan, MCS certification is a hard requirement - the work cannot be registered or the grant released without it.
MCS certification and notifiable work
Solar PV connected to the grid is notifiable work under Part P of the Building Regulations. Your MCS-certified installer will handle the DNO notification (G98 for systems up to 3.68 kW, G99 for larger), the Part P certification, and the MCS registration - you do not need to do these separately. Keep copies of the certificates, as they are required when you sell the property.
Frequently Asked Questions
Do I need an MCS-certified installer to get a Warm Homes Plan grant?
Yes. Any solar panels or battery storage installed under the Warm Homes Plan must be fitted by an MCS-certified installer. The MCS certification is what allows the work to be registered and the grant to be released.
Can I apply if I already have solar panels?
Existing solar owners cannot apply for the solar panel element again, but may be eligible for battery storage as a separate measure if their home meets the income and EPC criteria. Speak to your local authority to confirm which measures are available to you.
Is the 0% loan available right now?
The 0% loan scheme for households above the grant income threshold is expected to open in full from 2027. You can register your interest in advance. The Local Grant for lower-income households is available now through local authorities.