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Government planning to boost Warm Homes Plan with £6 billion funding

Louise Frohlich
Written By
Maximilian Schwerdtfeger
Reviewed By
Published on 10 January 2025
  • £6.6 billion worth of grants and loans to be made available for solar panel installation
  • Government targets for the UK to be reliant on 95% clean electricity by 2030
  • The government’s spending review concludes in June
A row of houses with heat pumps and solar panels
The government has committed £3.4 billion towards the Warm Homes plan

Millions of homes could be offered £6.6 billion worth of grants and cheap loans to install low-carbon technology, including solar panels and heat pumps, as the government aims to reach its 2030 clean energy targets, according to reports.

Several media outlets, including the Times, reported near the end of 2024 that ministers are currently drawing up plans to subsidise the cost of fitting solar panels and solar batteries in households. 

There hasn’t been a formal policy announcement as of yet, but if there is more money for Warm Homes Plan it will be announced at the end of the government’s Spending Review, likely in July. 

The Labour party manifesto promised to deliver energy security with the goal of zero-carbon electricity generation by the end of the decade, as well as cutting energy bills and creating jobs to accelerate the UK’s net zero drive.

In December 2024, Secretary of State for Energy and Climate Change, Ed Miliband, set out what was described as “the most ambitious reform to the energy system in generations,” with the goal of seeing the UK reliant on 95% clean electricity by 2030.

The initial commitment towards the Warm Homes Plan is £3.4 billion over the next three years. The government aims to upgrade 300,000 homes in the first year, which, if successful, will position the UK as a leader in clean energy and sustainable living. 

A spokesperson for the Department for Energy Security and Net Zero was quoted in The Daily Telegraph saying that the Warm Homes plan will “ensure that new homes are fit for a net zero future, so people can generate their own electricity, cut their bills and at the same time help fight climate change.”

After the government’s spending review concludes in June, ministers will set out further plans on how solar energy can be supported in the UK. 

The spokesperson continued: “We will set out our full plans to help millions more households benefit from clean homegrown power.

“We are considering the role that finance may play in supporting homeowners with the upfront costs of energy efficiency improvements, solar panels and installing low-carbon heating.” 

Fuel-poor households will be given upfront grants to install solar panels and batteries and others could receive cheap loans to cover the cost of installation.

These loans would be repaid through bills at a lower cost than current household electricity charges, and would help consumers benefit directly from the decarbonisation of the national grid. 

Jess Ralston, head of energy at the Energy and Climate Intelligence Unit (ECIU), was quoted describing the scheme as “a vital part of the government’s clean energy plan.”

Ministers are reportedly also considering increasing the profit homeowners could make by selling unused energy back to the grid. The current price is capped well below market levels, but increasing the amount would incentivise homeowners to sell. 

However, there are fears that these plans could be too costly and not have the desired impact in solar uptake. Upgrades to the national grid would also be necessary as current infrastructure can’t handle and distribute power effectively.

Miliband said: “This is about harnessing the power of Britain’s natural resources to protect working people from the ravages of global energy markets.

“The clean power sprint is the national security, economic security, and social justice fight of our time.”

Written by

Louise Frohlich

Louise joined The Eco Experts as Editorial Assistant in April 2024. She is a talented artist who has a keen interest in solutions that lead to a more environmentally-friendly future. Louise graduated from the University of Winchester in 2022 and went on to write for The Eco Experts sister site, Expert Reviews. She has taken part in charity expeditions to Ecuador and Uganda to help build water pipes, promote environmental cleanup initiatives and implement sustainable farming techniques. She now uses her knowledge to help readers make more eco-friendly choices. Alongside her passion for the environment she enjoys theatre, portraiture and Egyptology.

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Reviewed By

Maximilian Schwerdtfeger

Max joined The Eco Experts as content manager in February 2024. He has written about sustainability issues across numerous industries, including maritime, supply chain, finance, mining, and retail. He has also written extensively for consumer titles like City AM, The Morning Star, and The Daily Express.

In 2020, he covered in detail the International Maritime Organisation’s (IMO) legislation on sulphur emissions and its effects on the global container shipping market as online editor of Port Technology International.

He also explored the initiatives major container ports and terminals have launched in order to ship vital goods across the world without polluting the environment.

Since then, he has reported heavily on the impact made by environmental, social, and governance (ESG) practices on the supply chain of minerals, with a particular focus on rare earth mining in Africa.

As part of this, in 2022 Max visited mines and ports in Angola to hone in on the challenges being faced by one of the world’s biggest producers of rare earth minerals.

His most recent sustainability-related work came much closer to home, as he investigated the eco-challenges faced by independent retailers in the UK, specifically looking at how they can cut emissions and continue to thrive.

Max lives in South London and is an avid reader of books on modern history and ghost stories. He has also recently learned to play the game Mahjong and takes every opportunity to do so. He is also yet to find a sport he doesn’t enjoy watching.

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