This beginner guide corrects common myths about paying for renewable energy. Myths lead people to miss support or take on poor finance. We state each myth, then the checked facts. Every fact comes from the official sources listed at the end of this page.
Independent guide. We are not a lender or a government body. Always check current scheme rules with the official provider.
Myths about grants
Myth: grants cover everything. Fact: most grants have limits and cover set measures only. Warm Homes: Local Grant funds up to £15,000 for insulation, glazing, solar and batteries, plus up to a further £15,000 for low-carbon heating. The Boiler Upgrade Scheme covers heat pumps and biomass boilers only.
Myth: you must be on benefits to get help. Fact: Warm Homes: Local Grant also accepts a gross household income of £36,000 or less, or a lowest-income-decile area. The Boiler Upgrade Scheme has no income test. The Home Energy Scotland grant has no benefits requirement.
Myth: ECO4 runs forever. Fact: ECO4 ends on 31 December 2026, with no successor obligation.
Myths about loans
Myth: all green loans are the same. Fact: terms, rates and security differ between lenders. Some loans are secured on your home. Longer terms can raise the total cost of credit, so compare that total for every offer.
Myth: government-backed means anyone can apply now. Fact: Three details are not yet confirmed. The Government has not published the eligibility rules. It has not confirmed how or when you apply. Each lender has not yet published its rates. Only ten lenders are taking part.
- HomeServe (with E.ON)
- HTG Finance
- Propensio
- Secure Trust Bank
- Selina Finance
- South Manchester Credit Union
- Sunsave
- Tandem Bank
- The Money Co-op
- This Bank
Myths about installers and scams
Myth: a firm that calls about "the government scheme" is official. Fact: scammers pose as official schemes. Myth: any installer will do. Fact: many schemes need an MCS-certified installer, and MCS installers must belong to RECC or HIES. Follow these steps to test any claim.
- Check the claim on the scheme's official website.
- Search for the installer on the MCS website.
- Check the lender on the FCA register.
- Refuse any upfront fee for a loan.
- Get two or three written quotes before you sign.
Checklist
- Grant limits and measures checked
- Income and benefit rules checked
- Loan offers compared on total cost of credit
- Lender checked on the FCA register
- Installer checked on MCS
Frequently asked questions
Will a grant pay for my whole project?
Not always. Most grants have limits and cover set measures only.
Do I need to be on benefits to get help?
No. Several schemes have income or area tests instead, and some have no income test.
Are all green loans the same?
No. Rates, terms and security differ. Compare the total cost of credit for each offer.
Can I apply for the Warm Homes Loan now?
Not yet. The Government has not confirmed eligibility rules or how and when you apply.
Someone says they run the government scheme. Should I trust them?
No. Check the claim on the official scheme website and check the firm on official registers.
So you can make funding decisions based on checked facts, not myths.
WHLS Editorial Team
Our editorial team writes independent, plain-English guides on home energy finance. We review guides when scheme rules change.
References
- GOV.UK – Notice of approved grant categories and values for the Boiler Upgrade Scheme (opens in a new tab)
- Energy Saving Trust – Boiler Upgrade Scheme (opens in a new tab)
- MoneySavingExpert – Warm Homes Loan Scheme news (October 2026) (opens in a new tab)
- Financial Conduct Authority – Financial Services Register (opens in a new tab)
- MCS – Find an installer (opens in a new tab)
- Energy Saving Trust – Warm Homes: Local Grant guide (opens in a new tab)
- GOV.UK – Extending the ECO4 end date: government response (opens in a new tab)
- Home Energy Scotland – Grants and loans (opens in a new tab)
- MCS – Home Energy Scotland Grant and Loan (opens in a new tab)
- Energy Saving Trust – Welsh Government Nest scheme (opens in a new tab)
