A Warm Homes loan is borrowing you repay; Warm Homes: Local Grant is free support for eligible low-income households in England. The Boiler Upgrade Scheme is a grant towards heat pumps and biomass boilers in England and Wales. These routes sit under the Government’s Warm Homes Plan, but their rules and purposes differ.
For the broader overview, read our guide: Home Energy Fund.
Independent guide. We are not a lender or a government body. Always check current scheme rules with the official provider.
1. Compare the schemes without mixing their limits
Start with nation, ownership and proposed work. A cap is not a quote or guaranteed payment. Ask the provider to assess your circumstances before committing.
| Scheme | Type | Nations | Who it is for | What it covers | Maximum | How to apply | Key rule |
|---|---|---|---|---|---|---|---|
| Warm Homes Loan | Repayable loan | UK | Residential property owners; lender credit and affordability checks | Heat pumps, solar PV, batteries, heat networks, domestic wind, micro hydro | Solar £15,000; battery £15,000; air-to-water £20,000; air-to-air £10,000 once MCS certification is available; ground source £35,000; heat network £7,500; micro-renewables £20,000. Factsheet also lists biomass £20,000; confirm because guidance does not list it. | Lender; installer or retailer finance; mortgage provider | Cannot share an improvement with other government funding |
| Warm Homes: Local Grant | Free grant support | England | Privately owned homes, EPC D–G; income £36,000 or less, means-tested benefits or lowest-income-decile area | Energy performance measures including insulation, glazing, solar and batteries; low-carbon heating | Up to £15,000 energy performance support plus up to £15,000 heating | Local authority; check GOV.UK or contact your council | Council assesses household, property and measures |
| Boiler Upgrade Scheme | Grant | England and Wales | Eligible heating projects; no income test | Heat pumps and eligible biomass boilers | Air-to-water/ground source £7,500, or £9,000 for off-gas oil/LPG replacement; air-to-air £2,500; biomass £5,000 off-gas only | MCS-certified installer applies | Not for solar panels or batteries |
| Home Energy Scotland | Grant and optional interest-free loan | Scotland | Scottish homeowners; check full conditions | Heat pumps and biomass under verified heating funding | Up to £7,500 grant plus optional loan up to £7,500; £1,500 rural uplift | Contact Home Energy Scotland | MCS required; written offer before work; first-come; offer valid up to nine months |
Local Grant solar and batteries share one category. The loan caps are separate. Your provider decides actual support.
2. Which one should I check first?
Check free support first. This list identifies your first enquiry, not a guaranteed entitlement. Confirm property and installation conditions before signing.
- Low income and a home in England: check Warm Homes: Local Grant with your council, including EPC and ownership conditions.
- A heat pump in England or Wales: ask an MCS installer about the Boiler Upgrade Scheme and the grant category.
- A home in Scotland: contact Home Energy Scotland about the grant, optional loan and written-offer requirements.
- A homeowner wanting to spread costs: compare Warm Homes loan products through the three official application routes.
Local Grant can include privately rented homes, but landlord involvement and contribution rules need checking. The verified rules fund a landlord’s first property fully and further properties at 50%. Ask the council how those rules affect your application. Do not assume a tenant can arrange funded work without the property owner’s involvement.
Welsh households can also ask Nest about its current support without assuming a grant amount. Northern Ireland households should check official advice about grants available locally. The UK loan property rule includes Northern Ireland, subject to lender conditions. National grant coverage and loan eligibility are different checks.
3. Keep each improvement and funding decision separate
You can get a Warm Homes loan alongside other grants, including the Boiler Upgrade Scheme and Home Energy Scotland grants. You cannot use a Warm Homes loan and other government funding to pay for the same improvement. Ask your lender and installer how this applies to your plan.
Separate panels, storage, heating and other work on your quote. Record one government funding source per improvement. Do not assign BUS and a scheme loan to the same heat pump.
Home Energy Scotland’s own grant and optional interest-free loan are a separate funding arrangement. Its published package does not remove the UK scheme’s restriction on using both government routes for the same improvement. Ask both providers before making a plan involving them. Work must wait for the written Scottish funding offer.
Check GOV.UK, the FCA register and the scheme-funded product statement. Usually MCS certification is required, except for heat networks. No DIY is allowed. Retain records for possible random audits.
Checklist
- I have matched schemes to my nation and property.
- I checked low-income support before borrowing.
- I separated grants from repayable loans.
- I matched each improvement to one government funding source.
- I checked MCS requirements and written-offer conditions.
- I compared complete loan repayment totals.
Frequently asked questions
Is my Warm Homes loan free funding?
No. It is borrowing you repay under a lender’s terms. Some products are interest-free, but the borrowed amount still needs repaying.
Can I use my loan and BUS grant on the same heat pump?
No. You cannot use a Warm Homes loan and other government funding to pay for the same improvement. Ask your lender and installer about your plan.
Can my Local Grant fund solar panels and a battery?
Both sit within the energy performance category, up to £15,000 in total for that category. Your council assesses which measures apply.
Can I apply for my loan with an existing mortgage?
Yes, the ownership rule allows a mortgage. Your UK residential property and application must still meet lender eligibility, credit and affordability checks.
Can I start my Scottish installation before the offer?
No. Home Energy Scotland requires a written funding offer before work starts. Check its conditions and the offer’s validity deadline.
So you can choose the right first enquiry and keep grant support separate from borrowing for each improvement.
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)
- GOV.UK – Warm Homes Loan Scheme (published 28 October 2026) (opens in a new tab)
- GOV.UK – Loan eligibility (opens in a new tab)
- GOV.UK – Apply for a loan (opens in a new tab)
- GOV.UK – Participating lenders (opens in a new tab)
- GOV.UK – Installation audits (opens in a new tab)
- DESNZ – Loan factsheet (27 October 2026) (opens in a new tab)
- Energy Saving Trust – Warm Homes: Local Grant guide (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)
