Free or Cheap Green Home Loans (Coming Soon) – Solar Panels, Batteries & Heat Pumps

The UK Government has announced plans to introduce interest-free (0%) or low-interest loans to help households pay for solar panels, battery storage, heat pumps and other energy-efficiency upgrades.                                                         

The aim is simple: remove the upfront cost barrier and make it easier for homeowners to upgrade to cleaner, cheaper energy.

What’s changing?

The proposed scheme will allow households to apply for a Government-backed loan through their bank or lender – similar to applying for any other loan, but with lower rates (including the possibility of 0% interest).

These loans are expected to cover upfront costs for upgrades like:

• Solar PV panels
• Battery storage
• Heat pumps
• Insulation and wider home energy improvements

The Government has said there will be a maximum amount you can borrow, but it will be high enough to fund more than one upgrade at a time.

Important: the scheme is still being developed and more details (including eligibility and launch date) are due later. Current reporting suggests loans may not be available until 2027.

Save More with 0% VAT on Solar and Batteries

There’s already a major saving available today:

✅ 0% VAT applies to residential solar panels and battery storage (including retrofitted batteries in many cases).

That means the price you pay is lower right away, and your payback period improves automatically.                   

Solar Panel Payback: What You Can Expect

Payback depends on your system size, household usage, and whether you add a battery. But the key point is this:

Solar reduces the amount of electricity you buy from the grid — and grid electricity is expensive.

Most homes get the best savings when they use more of their solar power in the home (for example by running appliances during the day or adding a battery).

Typical payback ranges (UK homes)

Solar panels (no battery):

• Typical payback: 6–10 years
• Best for households that use more electricity during daylight hours

Solar panels + battery:

• Typical payback: 7–12 years
• Best for households that want to use more of their solar in the evening/night and reduce grid reliance

Your actual payback will depend on your usage patterns and the energy tariff you’re on. We can provide a tailored estimate after a quick quote.

Why Solar Makes Sense When Fuel Costs Are High

The main reason solar has become so popular is simple economics:                                                           

• Grid electricity costs far more per kWh than your solar electricity
• Every unit of solar you use is a unit you don’t buy from your supplier
• A battery can increase your self-consumption and help you avoid peak-rate electricity

Even without a battery, solar can cut your day-to-day electricity bill immediately. With a battery, many households increase savings by using more of their own energy later in the day.

Combine Solar with Other Support (Heat Pumps & Grants)

If you’re also considering a heat pump, you may be able to combine different schemes.

Boiler Upgrade Scheme (England & Wales)

Homeowners in England and Wales may be eligible for a £7,500 grant towards the cost of replacing a fossil fuel boiler with an air source heat pump.

When Government-backed loans arrive, they are expected to be usable alongside existing support like this — helping cover remaining installation costs.

Low-Income Households: Free Energy Upgrades (England)

Some households in England may qualify for free energy efficiency improvements through current Government support, which can include insulation, solar panels and heat pumps.

Eligibility is based on income (for example under £36,000) or qualifying benefits, and measures can total up to £30,000 depending on the scheme.

Interested in Solar, Batteries or a Future 0% Loan?

Whether you’re looking to install now (and benefit from 0% VAT) or planning ahead for Government-backed finance, we can help you understand your options.

✅ Free quote
✅ System design to suit your home
✅ Payback estimates based on your usage
✅ Advice on batteries, export payments, and best next steps

Get a quote from Mr Solar today and start reducing your electricity bills.