How millions of households could get free solar panels and heat pumps through new government scheme

Households will soon be able access thousands of pounds’ worth of green tech to lower energy bills and keep warm year-round, the government has announced.

The ‘Warm Homes Plan’ will see homeowners able to access low and low and zero-interest loans to install solar panels, heat pumps and batteries, the Department for Energy and Net Zero (DESNZ) says.

Low-income households and fuel-poor families struggling to pay energy bills will also receive free upgrades for insulation and clean tech backed by £5 billion of public investment under the flagship plan.

The government has pledged £15 billion of public investment to deliver the energy efficiency and technology upgrades to British homes. Ministers say it will cut bills and reliance on fossil fuels, reduce carbon emissions and lift people out of fuel poverty.

New protections for renters living in cold, damp and mouldy conditions will also be introduced.

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Energy secretary Ed Miliband said:“It is a scandal that millions of people in our country do not have the security of a home that is warm, affordable and safe.

“With this investment, we embark on a national project to turn the tide - waging war on fuel poverty and taking another step forward in tackling the affordability crisis for families throughout Britain.”

It comes after chancellor Rachel Reeves announced at last years’ Budget that an average £150 a year would be cut from energy bills for all families from April.

Environmental and anti-fuel poverty campaigners welcomed the new plan but called for more action and funding to tackle the issue of people living in cold, damp homes and struggling to pay energy bills.

Here’s what you need to know:

The warm homes plan includes direct support for low-income families to receive a free package of energy-saving measures ranging from insulation to technology depending on what suits an individual property.

DESNZ gives the example of a family receiving a fully funded installation of solar panels and a battery, saving up to £12,000.

There could also be upgrades to entire streets of social housing, officials said.

Government-backed zero and low interest loans will be available to homeowners to install solar panels on their roofs, alongside new rules in the Future Homes Standard that will make solar on new homes standard.

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The loans will also be available for batteries and heat pumps, to allow greater take up of clean technologies, and are in addition to the £7,500 grant for replacing boilers with heat pumps.

Home upgrades available under the government scheme will include: solar panels, heat pumps, home and heat batteries, smart controls, insulation, and draught proofing.

The plans also include upgrading protections for renters, along with support for landlords to make energy efficiency improvements, DESNZ said.

The department adds that 1.6 million children are currently living in private accommodation suffering from cold, damp, or mould. It estimates that half a million families will be lifted out of fuel poverty by the end of the decade through the plan.

Simon Francis, co-ordinator of the End Fuel Poverty Coalition, said: “The lifeblood of the warm homes plan amounts to a rescue mission for the coldest, dampest homes in Britain – and this must be the priority.

“Combined with long-overdue improvements to conditions in the private rented sector, it could save lives, cut NHS costs and permanently slash energy bills for those in fuel poverty.”

But he called for further reforms to bring down the cost of electricity and provide financial support for households while they wait for improvements to be installed.

“Above all, any use of public funds must come with a warm homes guarantee, built around quality advice on the right installations to deliver, enhanced consumer protections and a promise that every upgraded home will see bills come down.”