United Kingdom launches £15bn Warm Homes programme to scale solar, storage and heat pumps

The UK government has unveiled a £15 billion “Warm Homes” programme aimed at accelerating the rollout of residential solar panels, battery storage and heat pumps, marking what it describes as the largest public investment ever made in upgrading British homes.

According to the Labour government, the initiative is expected to support up to 5 million home upgrades and help lift around one million households out of fuel poverty by 2030, while also creating approximately 180,000 jobs across the clean energy supply chain. Officials estimate the programme could unlock up to £38 billion in total investment over the current parliamentary term, including additional funding for skills development, innovation and domestic manufacturing.

Loans, grants and targeted support

Under the scheme, homeowners will be able to access government-backed low- and zero-interest loans to install rooftop solar panels, a move ministers say will help drive a nationwide “rooftop solar revolution”. The package also includes grants of up to £7,500 for heat pumps, including air-to-air systems that can provide cooling during summer months.

A dedicated £5 billion allocation has been earmarked for low-income households, enabling fully funded installations of solar panels and home batteries with a total value of £9,000–£12,000 per property. The funding will also support energy-efficiency upgrades in social housing and provide longer-term assistance for private landlords to improve homes affected by cold, damp or mould.

In addition, the government confirmed plans to introduce new building rules requiring solar panels to be installed as standard on new homes, as part of the Future Homes Standard scheduled to take effect in early 2026.

Industry backing, union scepticism

The announcement was welcomed by parts of the clean heating and energy sector. Matt Isherwood, managing director of Aira UK, said the programme provides a “vital boost” to investor confidence and job creation in the low-carbon economy, sending a clear signal that the transition to electric heating is irreversible.

Energy suppliers also expressed support. Octopus Energy founder Greg Jackson described the plan as a “really important step forward”, arguing that electrifying homes through solar, batteries and heat pumps is the most effective way to permanently reduce household energy bills and cut exposure to volatile fossil fuel prices. British Gas owner Centrica echoed that view, saying the scheme could accelerate the adoption of low-carbon technologies at scale.

However, the initiative has faced criticism from parts of the trade union movement. The GMB union questioned the feasibility of installing up to 500,000 heat pumps per year, citing shortages in skills, supply chains and public appetite. Andy Prendergast, GMB national secretary, warned that without stronger engagement with energy workers, the plan risks becoming an unrealistic top-down strategy.

By contrast, the Trades Union Congress (TUC) struck a more optimistic tone. Assistant general secretary Kate Bell said that, if implemented effectively, the programme could deliver high-quality jobs across the UK while reducing household energy costs.

A cornerstone of the UK’s home energy transition

The Warm Homes plan positions residential electrification at the centre of the UK’s net-zero strategy, with ministers emphasising that decarbonising homes is critical to cutting emissions, improving energy security and lowering bills over the long term. While debate continues over delivery pace and workforce readiness, the programme sends a strong policy signal that the future of home heating and power in the UK is electric.