UK households set for £15bn boost to install solar and green tech under Warm Homes Plan

UK households are set to benefit from up to £15 billion in support for solar panels and other low-carbon technologies under a long-awaited government plan designed to cut energy bills and reduce fuel poverty.

The Warm Homes Plan, published on Wednesday, will roll out funding over the next five years to support the installation of solar panels, heat pumps and home batteries, alongside new rights for renters. Ministers say the programme will help drive a “rooftop revolution”, triple the number of homes with solar and lift one million people out of fuel poverty.

The policy, first proposed in 2024, has been billed as a response to what the government has described as a national emergency over rising household energy costs. While the announcement has been widely welcomed by the energy and finance sectors, opposition parties warned that households could still face high running costs.

Under the plan, households across the UK will be able to access a mix of grants and low- or zero-interest loans, regardless of income, to support the uptake of green technologies. Ministers estimate that for a typical three-bedroom semi-detached home, installing a heat pump, solar panels and a battery could save around £500 a year on energy bills, although independent estimates from charities such as Nesta and the MCS Foundation suggest savings could exceed £1,000.

For some households, however, upfront costs will remain. Even after subsidies, installing a heat pump typically leaves homeowners contributing around £5,000 themselves.

Prime Minister Keir Starmer said the programme was about fairness as well as climate policy. “A warm home shouldn’t be a privilege, it should be a basic guarantee for every family in Britain,” he said.

Energy Secretary Ed Miliband said upgrading homes was central to tackling the cost-of-living crisis and expanding access to technologies that have previously been out of reach for many households. Speaking to the BBC, he said the aim was to widen consumer choice so that heat pumps and solar panels were not “just in the reach of the wealthiest”.

The plan includes an extension of the Boiler Upgrade Scheme to 2029-30, maintaining grants of £7,500 for air-source heat pumps, alongside an additional £600 million to fully fund solar panels and batteries for low-income households. This brings total support for vulnerable households to £5 billion.

The energy industry said the scale and duration of the funding were critical. Dhara Vyas, chief executive of Energy UK, said the £15 billion commitment would provide long-term certainty for investors and businesses, helping to unlock private capital for green technologies. Camilla Born, chief executive of Electrify Britain, a joint campaign backed by Octopus and EDF, said the plan would help reduce bills over time but warned that delivery would be key.

Not all responses were positive. Richard Tice criticised the policy as a waste of taxpayers’ money, arguing it would primarily fund Chinese-made equipment. Government data shows that around 68 per cent of solar panels imported into the UK in 2024 came from China. Miliband said ministers were working to diversify supply chains and increase domestic investment.

The government estimates the scheme will support up to 180,000 jobs in clean heating, although officials acknowledge many roles will come from retraining existing engineers rather than entirely new positions.

Notably, the plan downgrades the role of insulation, which had been a central feature of earlier proposals. Ministers decided not to extend the existing ECO insulation scheme following widespread criticism over poor-quality installations. Aadil Qureshi, chief executive of Heat Geek, said the shift towards supporting emerging technologies such as heat pumps was the right call, arguing that government backing was needed to scale the industry and drive down costs.

The Warm Homes Plan also includes changes affecting renters. From 2030, landlords will be required to ensure rental properties meet a minimum EPC rating of C, up from the current E. The government acknowledged flaws in the existing EPC system, which can penalise homes that install heat pumps, and said reforms to the assessment process would be announced later this year.

Requirements for new-build homes will be set out under the forthcoming Future Homes Standard. Amid concerns that solar panels might be dropped from new housing rules, the government confirmed that new homes would include low-carbon heating, high energy efficiency and solar panels as standard.

Opposition parties remain sceptical. Claire Coutinho warned that without urgent action to cut electricity prices, households risk being saddled with higher running costs despite generous subsidies. The Liberal Democrats said the plan failed to address immediate fuel poverty concerns this winter.

Some industry figures also questioned the balance of support. Dale Vince, chief executive of Ecotricity, welcomed the emphasis on solar but criticised what he described as excessive subsidies for heat pumps, arguing that rooftop solar offered better value for money in cutting bills and emissions.

Despite the criticism, ministers remain convinced that expanding solar generation will be key. By pairing heat pumps with solar panels and batteries, the government hopes households will rely more on home-generated electricity and less on the grid, reducing exposure to volatile gas prices.

Miliband said the UK’s reliance on imported fossil fuels had left it vulnerable to price shocks, pointing to the surge in gas prices following Russia’s invasion of Ukraine. “We are swapping reliance on imported gas for homegrown clean power where we control the price,” he said.

Energy analysts said the decisions were overdue. Jess Ralston of the Energy and Climate Intelligence Unit said while delays had been frustrating for renters living in inefficient homes, the confirmation of tougher standards for new builds would be welcomed by the public and could mark a turning point in improving the UK’s housing stock.