UK Government launches £15bn Warm Homes Plan – Here's what it means for you

21.01.2026

The UK government has today launched the Warm Homes Plan, committing £15 billion - the largest public investment in home energy upgrades in British history - to upgrade homes across the country, cut energy bills and tackle fuel poverty.

By SOLARWATT UK & Ireland Contact

The UK government has today launched the Warm Homes Plan, committing £15 billion to upgrade homes across the country, cut energy bills and tackle fuel poverty. It is the largest public investment in home energy upgrades in British history and is set to shape the future of residential energy in the UK for the rest of the decade.

The plan aims to support upgrades in up to five million homes by 2030, helping households reduce long-term energy costs while lifting up to one million families out of fuel poverty. Measures will include support for solar panels, battery storage, heat pumps and insulation, alongside reforms affecting new-build homes, renters and social housing.

For Solarwatt and the wider installer community, the announcement marks a significant shift towards integrated, system-led home energy solutions.

A plan designed for all households.

The Warm Homes Plan sets out a broad, inclusive framework:

Fully funded upgrades for low-income households, including solar and battery installations
A universal offer of low and zero-interest loans for homeowners investing in clean energy
A £7,500 grant for heat pumps, including new support for air-to-air systems
New protections and upgrade requirements for renters and social housing
Solar panels to be fitted as standard on new homes from 2026

The government estimates that these measures could save households hundreds of pounds a year on energy bills, while improving comfort, resilience and energy security.

For installers, the Warm Homes Plan is expected to drive:

Increased demand as upfront costs fall for households
A move away from single-technology installs towards joined-up systems
Longer-term, more stable pipelines rather than short-lived scheme demand
Greater emphasis on system performance, optimisation and customer outcomes

While some headlines focus on the ambition of "zero-bill homes", the reality for most households will be significantly lower bills, improved comfort and greater control over energy use. Delivering those outcomes depends on quality design, installation and commissioning - areas where experienced installers play a central role.

Solar, storage and smart energy management.

As electricity tariffs become more dynamic, how energy is managed is becoming just as important as how it is generated. Solar and battery systems increasingly need to work alongside smart controls that can respond to time-of-use pricing and household demand.

This brings Home Energy Management Systems (HEMS) into sharper focus. By intelligently coordinating generation, storage, heating and grid interaction, installers can help homeowners:

Maximise self-consumption of solar energy
Reduce imports during peak-price periods
Improve system payback and long-term value
Gain clearer insight and control over energy use

A key role for SMEs and independent installers.

The success of the Warm Homes Plan will depend on inclusive delivery models that recognise the role of SMEs and independent installers - not just large utilities or national providers.

Local installers bring:

Property-specific design expertise
Flexibility across multiple technologies
Trusted customer relationships
Ongoing service, optimisation and support

If delivered well, the Warm Homes Plan has the potential to act as a blueprint for a more balanced, consumer-focused home energy market, where quality installation and intelligent systems are prioritised alongside scale.

Become a SOLARWATT installer

What happens next

Further detail on eligibility, delivery models and installer participation is expected in the coming months. While “zero-bill” homes may remain out of reach for many properties, the direction of travel is clear.

Smarter, cleaner and more affordable home energy is moving into the mainstream - and installers will be at the heart of turning this policy into real-world outcomes for households across the UK.