Warm Homes Plan 2026: £15bn Investment in Heat Pumps and Renewable Energy

The UK government has announced the Warm Homes Plan—a £15 billion investment to upgrade up to 5 million homes with heat pumps, solar panels, batteries, and insulation. This represents the biggest home upgrade plan in British history, targeting 1 million households out of fuel poverty by 2030 and accelerating the transition to renewable energy.

What is the Warm Homes Plan?

The Warm Homes Plan is a comprehensive government initiative announced in January 2026, allocating £15 billion in public investment to upgrade homes across the UK. The plan has three core objectives:

• Reduce energy bills: Help households save up to £550 per year through efficiency upgrades and renewable installations

• Cut carbon emissions: Support the UK's net zero targets by accelerating heat pump and solar adoption

• End fuel poverty: Lift up to 1 million households out of fuel poverty by 2030

The plan aims to upgrade up to 5 million homes by 2030, making it the largest home upgrade programme in British history.

Three Pillars of Support

The Warm Homes Plan is structured around three distinct support mechanisms:

1. Low-Income Offer (Free Upgrades)

Low-income households, particularly those in social housing and the privately rented sector, will receive free-of-charge upgrades. This includes fully funded heat pump installations, solar panels, batteries, and insulation for eligible households.

Eligibility is based on income thresholds and property characteristics, with priority given to homes in fuel poverty or with poor energy efficiency ratings.

2. Offer for Everyone (Loans and Investment)

All households will have access to zero- or low-interest government-backed loans for installing renewable technologies. This includes:

• Air-source and ground-source heat pumps

• Solar PV panels

• Battery storage systems

• Insulation and energy efficiency improvements

These loans are designed to make renewable installations accessible to homeowners who can afford monthly repayments but may struggle with upfront costs.

3. Protections for Renters

Landlords will be required to improve the energy efficiency of rental properties by 2030, with fair phasing and regulation. This ensures renters benefit from the plan while protecting landlords from excessive costs.

Minimum energy efficiency standards will be updated for both new and existing rental properties, creating a clear pathway for improvements.

Heat Pumps: Central to the Plan

Heat pumps are a cornerstone of the Warm Homes Plan. The government aims to grow the UK heat pump market to deliver over 450,000 annual installations by 2030, with approximately 200,000 installations in new-build homes through the Future Homes Standard.

Grant Support

The Boiler Upgrade Scheme (BUS) will continue, offering grants of up to £7,500 for switching from gas boilers to heat pumps. This grant applies to:

• Air-source heat pumps (ASHP)

• Ground-source heat pumps (GSHP)

• Air-to-air heat pumps (newly eligible from 2026, with £2,500 grants)

• Heat batteries (newly eligible from 2026, with £2,500 grants)

Planning Permission Changes

To accelerate heat pump adoption, the government is relaxing planning permission requirements in England. The "1-metre rule"—which previously required air-source heat pumps to be at least 1 metre from property boundaries—is being removed.

This change makes it significantly easier for homeowners to install heat pumps without navigating complex planning processes, reducing both time and cost barriers.

Solar Panels and Battery Storage

The plan also supports solar PV installations and battery storage systems. Homeowners can access:

• Government-backed loans for solar panel installation

• Battery storage grants (£2,500 from 2026) to maximise self-consumption of solar energy

• Combined packages: Heat pump + solar + battery installations can save households up to £550 per year in energy bills

These technologies work together to create energy-independent homes, reducing reliance on the grid and protecting against future energy price volatility.

Targets and Progress

The Warm Homes Plan sets ambitious targets for the renewable energy industry:

• 450,000+ heat pump installations per year by 2030 (up from current levels of around 180,000)

• 5 million homes upgraded with renewable technologies and efficiency measures

• 1 million households lifted out of fuel poverty by 2030

As of September 2025, over 180,000 subsidy-backed heat pump installations have been completed, with air-source systems dominating (98% of recent installs). The plan aims to more than double this annual rate.

What This Means for Homeowners

If you're considering renewable energy upgrades, the Warm Homes Plan offers multiple pathways:

If You're on Low Income

You may qualify for fully funded upgrades, including heat pumps, solar panels, and insulation. Contact your local authority or energy supplier to check eligibility.

If You Can Afford Monthly Repayments

You can access zero- or low-interest loans to cover installation costs. Combined with BUS grants of up to £7,500 for heat pumps, this makes renewable installations more affordable than ever.

If You're a Renter

Your landlord will be required to improve your property's energy efficiency by 2030. You'll benefit from lower energy bills and a more comfortable home without bearing the upfront costs.

What This Means for Installers

The Warm Homes Plan represents a significant opportunity for renewable energy installers. With 450,000+ annual heat pump installations targeted by 2030, demand is set to grow substantially.

Increased Demand for Surveys

Every heat pump and solar installation requires proper site surveys to ensure:

• Correct system sizing: Heat loss calculations and solar assessments determine the right capacity

• MCS compliance: Survey evidence supports MCS certification and BUS grant applications

• Installation feasibility: Site measurements, photos, and technical assessments guide installation decisions

As demand for installations grows, so will demand for professional survey services. Installers need reliable, installer-ready survey packs that reduce call-backs and support smooth project delivery.

Evidence Requirements

For BUS grant applications and MCS compliance, installers need comprehensive survey documentation:

• EPC (Energy Performance Certificate): Required for grant eligibility

• RdSAP evidence: Documentary evidence of insulation, windows, and heating systems

• Heat loss calculations: For accurate heat pump sizing

• Site survey documentation: Measurements, photos, and technical assessments

Having the right survey evidence from day one prevents delays, reduces follow-up visits, and ensures projects move smoothly toward MCS sign-off and grant approval.

Industry Response

The Warm Homes Plan has been welcomed by industry bodies, environmental groups, and renewable energy advocates. The £15 billion investment signals strong government commitment to the renewable energy transition and provides the financial framework needed to scale the industry.

However, some critics note that the plan has dropped a proposed ban on new gas boilers by 2035, which some argue would have accelerated the transition more decisively. Others emphasise the importance of combining heat pumps with insulation to ensure homes remain affordable to run in cold weather.

Despite these considerations, the plan represents a major step forward for the UK's renewable energy industry and provides clear opportunities for growth.

Next Steps

If you're a homeowner interested in taking advantage of the Warm Homes Plan:

1. Check your eligibility: Contact your local authority or energy supplier to see if you qualify for free upgrades or loan schemes

2. Get a survey: Professional site surveys are essential for determining the right renewable technologies for your property

3. Find an installer: Work with MCS-certified installers who can access BUS grants and provide quality installations

4. Apply for grants: Your installer can help you apply for BUS grants and other available support

If you're an installer preparing for increased demand, ensure you have reliable survey partners who can deliver installer-ready documentation that supports MCS compliance and grant applications.

Conclusion

The Warm Homes Plan represents a transformative moment for the UK's renewable energy industry. With £15 billion in investment, ambitious targets, and multiple support mechanisms, the plan creates significant opportunities for homeowners, installers, and the wider industry.

For installers, the plan means increased demand for installations and, consequently, increased demand for professional survey services. Having reliable survey partners who deliver installer-ready documentation will be essential for scaling operations and ensuring smooth project delivery.

For homeowners, the plan makes renewable energy more accessible than ever—whether through free upgrades, low-interest loans, or grant support. Combined with relaxed planning rules and expanded grant eligibility, the barriers to adopting heat pumps and solar panels are lower than they've ever been.

The Warm Homes Plan is good news for our industry, and it's set to drive sustained growth in renewable energy installations across the UK.