Thinking about installing solar panels, a heat pump, or battery storage? A new government-supported loan scheme could make it more affordable to invest in your home's energy efficiency.
Making your home more energy efficient can be a smart investment. From generating your own electricity to improving how you heat your home, the right upgrades could help you reduce your energy bills and rely less on energy from the grid.
But there's often one thing standing in the way: the upfront cost.
That's where the new Warm Homes Loan Scheme comes in. Supported by the UK government, the scheme is designed to make borrowing for eligible home energy improvements more affordable, helping more homeowners turn their plans into reality.
And we're pleased to announce that Selina Finance is participating in the scheme, helping homeowners access finance for eligible improvements.
What is the Warm Homes Loan Scheme?
The Warm Homes Loan Scheme is a government-supported initiative that helps homeowners finance energy-saving improvements to their properties.
By providing capital grants to lenders like Selina Finance, the government enables us to reduce borrowing costs. In fact, the scheme is designed to deliver up to a 5% reduction in interest rates compared to regular loans, allowing us to offer highly competitive, no- and low-interest finance. That means you can make your home improvements sooner, while spreading the cost affordably.
What home improvements can you finance?
The scheme supports a range of technologies, with specific maximum loan caps for each. All installations must be completed by an MCS-certified professional to qualify. Here are a few improvements you can explore:
- ☀️ Solar panels (Loans up to £15,000): Solar panels generate electricity from sunlight, helping you reduce the amount of electricity you need to buy from the grid.
- 🌡️ Heat pumps (Loans up to £20,000 for Air-to-Water): Heat pumps use energy from the air or ground to heat your home. They offer an efficient, lower-carbon alternative to traditional heating systems. Bonus: You can combine your Warm Homes Loan with the £9,000 Boiler Upgrade Scheme grant for maximum savings on a heat pump!
- 🔋 Battery storage (Loans up to £15,000): Home battery systems allow you to store electricity for later use, including electricity generated by solar panels.
The exact improvements available through Selina Finance will depend on product eligibility and scheme requirements.
How does the Warm Homes Loan Scheme work?
The idea is simple: make it easier to invest in your home without having to cover the full cost of eligible improvements upfront. Here's how it works:
- Plan your improvements. Decide which energy-saving upgrades could be right for your home and obtain a quote from an MCS-certified installer. (This certification is required for the installation to be eligible for the scheme).
- Explore your finance options. Check the loan options available through a participating lender such as Selina Finance.
- Apply for your loan. Your application will be assessed based on the lender's eligibility and affordability criteria.
- Arrange your installation. Once your finance and installation arrangements are confirmed, you can take the next steps towards upgrading your home.
- Spread the cost. Repay your loan over the agreed term, subject to your loan agreement.
The interest rate, repayment period, and amount you can borrow will depend on the product and lender you choose.
Check out our more detailed step-by-step guide on the Warm Homes Loan Scheme for homeowners and installers.
Why consider making your home more energy efficient?
Energy-efficient home improvements aren't just about making your property greener. They can offer practical benefits for your household, too.
💷 Potentially lower energy bills
Generating your own electricity or improving your heating system could drastically reduce your household energy costs. According to government figures, installing a heat pump, battery, and solar panels could help families save up to £550 a year on energy bills—and potentially a further £300 a year if you switch to a smart time-of-use tariff.
⚡ Less exposure to changing energy prices
Producing and storing some of your own electricity could reduce the amount of energy you need to buy from the grid.
🏠 A more comfortable home
The right improvements can help you create a home that better suits your needs, including how you heat it.
🌱 An investment in your home's future
Making your home more energy efficient can help prepare it for the years ahead, while supporting a move towards lower-carbon energy.
How can Selina Finance help?
At Selina Finance, we believe homeowners should have better access to the finance they need to invest in their properties. We know that making improvements to your home can involve significant costs, even when those improvements could deliver benefits over the long term.
That's why we're pleased to be taking part in the Warm Homes Loan Scheme, helping make finance for eligible energy improvements more accessible.
Ready to make your home more energy efficient?
Whether you're considering solar panels, exploring a heat pump, or looking into battery storage, the Warm Homes Loan Scheme could help you take the next step.
Check out our more detailed step-by-step guide on the Warm Homes Loan Scheme for homeowners and installers.
All loans are subject to eligibility, credit and affordability checks.
This product is part-funded by the UK Government (Warm Homes Loan Scheme). For more information about the scheme, please visit www.gov.uk or download the information sheet.
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
