Britain launches preferential loans for solar panels — The Guardian

The UK has launched the government-backed Warm Home Loans programme, which allows households to obtain interest-free or low-interest loans for installing solar panels, heat pumps and home batteries. The loans range from £7,500 to £35,000, The Guardian reports.

Loans for home upgrades

Energy suppliers British Gas and E.On are working with Tandem Bank and Homeserve, respectively, to offer loans directly to customers at reduced rates compared with traditional lenders. Borrowers can spread repayments over many years.

Up to £10,000 is available to replace a gas boiler with an air-source heat pump, while up to £35,000 can be obtained for a ground-source heat pump. The loans can also be combined with the existing government grant programme for replacing fossil-fuel heating systems. It provides support of up to £9,000 per year for households installing such equipment.

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Expected savings

According to government estimates, installing a heat pump, home battery and solar panels can reduce annual energy costs by up to £550. A tariff under which electricity is cheaper outside peak-demand hours can provide additional savings of up to £300 a year.

Energy minister Miatta Fahnbulleh said the government-backed loans should help families upgrade their homes without upfront costs and make them warmer and cheaper to run. E.On UK chief executive Chris Norbury said that during a trial in Coventry, households experiencing fuel poverty that combined a home battery with a time-of-use tariff saved more than £250 a year on average.

According to the publication, the government may also reduce the budget of the heat pump grant programme. At the same time, grants of up to £9,000 are likely to remain available for households not connected to the gas grid and dependent on expensive heating oil.