What is the Warm Homes Loan?
The Warm Homes Loan is a government-backed lending scheme designed to help UK households pay for energy-efficiency and renewable energy improvements without needing savings or a large lump sum. The loans come from a panel of approved lenders rather than directly from the government, but they carry government backing that allows those lenders to offer rates up to 5% lower than regular loans.
The key features of the scheme, as set out in the GOV.UK factsheet published 27 October 2026, are:
- No upfront cost. You do not pay anything before the work starts.
- Low or zero interest. Some loans under the scheme are entirely interest-free. Others carry interest, but at rates up to 5% lower than comparable commercial loans.
- Long repayment terms. Repayment periods can run up to 30 years, keeping monthly payments manageable.
- Meaningful loan limits. Up to £15,000 is available for solar panels, and up to £15,000 for a home battery storage system.
- Credit and affordability checks apply. Lenders carry out standard checks before approving an application. Approval is not guaranteed.
How does the interest saving work in practice?
The GOV.UK factsheet gives a worked example that makes the saving concrete: a £10,000 loan at 8% interest over seven years costs approximately £155 a month. In GOV.UK's example, the scheme could save up to £285 a year on repayments compared with a loan available today.
That saving is meaningful on its own, but it sits alongside the energy bill reductions a solar and battery system typically delivers once installed, so the scheme addresses both the cost of borrowing and the ongoing cost of electricity.
Who is eligible?
The scheme is open to UK households. It does not cover businesses, and it does not cover EV chargers. The scheme covers a range of clean energy technologies, including heat pumps. For solar panels and batteries, the limit is up to £15,000 each.
The installer you use must hold MCS certification, the industry-standard accreditation for renewable energy installers in the UK. Without an MCS-certified installer, a lender cannot process a Warm Homes Loan application for your project.
Who is offering Warm Homes Loans?
At launch, ten lenders have been approved to offer Warm Homes Loans to homeowners. They are:
- HomeServe (with E.ON)
- Hometree Finance
- Propensio
- Secure Trust Bank
- Selina Finance
- South Manchester Credit Union
- Sunsave
- Tandem Bank
- The Money Co-op
- thisbank
Some of these lenders only work with their own partner installers. If you would like Djuka to fit your system, check that the lender accepts quotes from any MCS-certified installer before you apply.
The GOV.UK factsheet is the authoritative source for the current list of approved lenders. The scheme may add further lenders over time, so it is worth visiting the GOV.UK Warm Homes Loan factsheet directly to confirm who is participating when you are ready to apply.
Lenders that accept any MCS-certified installer can fund a Djuka installation today. We are also working towards becoming a partner installer with participating lenders, so you will be able to arrange finance alongside your Djuka quote. We will update this page when that is in place.
Why is MCS certification central to the process?
MCS (the Microgeneration Certification Scheme) is the quality standard that governs renewable energy installations in the UK. An MCS-certified installer has demonstrated that their workmanship, design processes, and equipment choices meet a consistent, independently audited standard. The certification is not optional: lenders require it for a Warm Homes Loan.
This requirement exists for good reason. A solar installation is a long-term asset. Lenders are extending credit over periods of up to 30 years, and they need confidence that the system will perform reliably over that time. MCS certification is the mechanism that provides that assurance.
MCS also matters beyond the loan application:
- Smart Export Guarantee (SEG) eligibility. To be paid for surplus electricity you export to the grid, your installation must be MCS-certified. Without it, you cannot register for any SEG tariff.
Djuka Electrics is MCS-certified. Every installation they carry out is completed to MCS standards and documented with an MCS certificate, and you receive the certificate once the work is complete.
How does it work with Djuka, step by step?
Using the Warm Homes Loan with Djuka Electrics follows a straightforward sequence. Here is how the process works from first enquiry through to a fully installed and certified system.
Step 1: Get a free, written quote
Contact Djuka Electrics to arrange a free survey and quote. The quote is written, itemised, and covers every element of the installation with no hidden costs. This is the document you will need when you approach a lender, so it is important that it is detailed and comes from an MCS-certified installer.
Step 2: Choose a lender and apply
With your Djuka quote in hand, you apply to a participating lender. If you would like Djuka to fit your system, choose a lender that accepts any MCS-certified installer, as some only work with their own partner installers. You complete their application, submit your Djuka quote, and go through their credit and affordability checks. The lender makes the lending decision.
Step 3: The lender runs its checks
The lender reviews your application, confirms the installer is MCS-certified, and makes a lending decision. If approved, the lender arranges to fund the installation. If your application is declined, you are free to approach a different lender on the scheme.
Step 4: Installation
Once funding is confirmed, Djuka Electrics books and carries out the installation. Their in-house team handles everything: panel mounting, inverter installation, battery connection (for example Tesla Powerwall 3, Fox ESS or EcoFlow), and all associated electrical work.
Step 5: MCS certificate issued
After the installation is complete, Djuka registers the system with MCS and issues your MCS certificate. This document confirms the installation meets the required standard, and is what you need to apply for the Smart Export Guarantee. Keep it with your quote, finance agreement and invoice, as GOV.UK recommends.
A note on VAT: Solar panels and home battery storage currently carry 0% VAT. This rate is in place until 31 March 2027. Installations completed before that date benefit from the zero rate, which reduces the total cost of the project and therefore the amount you may need to borrow.
Djuka Electrics covers homes within approximately 50 miles of Redditch, taking in much of the West Midlands, Worcestershire, Warwickshire, and surrounding counties. If you are unsure whether your property falls within their service area, the free quote request is the easiest way to find out.
Is a Warm Homes Loan worth it?
For most homeowners who want solar and storage but cannot pay upfront, the Warm Homes Loan is well worth comparing against other options. The combination of below-market interest rates, long repayment terms, and the 0% VAT window makes it a strong option for homeowners who want to spread the cost.
The scheme is not a grant. You will repay the full amount borrowed, plus any applicable interest. But the interest saving versus a standard personal loan is real and documented, and the loan term can be structured so that monthly repayments are manageable alongside whatever energy bill savings your system generates.
What Djuka Electrics brings to the table
Djuka Electrics installs solar and battery systems across the West Midlands. They are MCS-certified, NAPIT-registered, rated 4.9 on Trustpilot, and operate with a no-hidden-costs pricing policy. Every quote is free, written, and itemised, which is what you need when applying for a Warm Homes Loan. Djuka uses its own in-house installation team.
Planning to use the Warm Homes Loan? Start with a free Djuka quote. It costs nothing, commits you to nothing, and gives you the document you need to apply.