£15 Billion 'Warm Homes Plan' Announced by UK Government
The UK government has announced a £15 billion 'Warm Homes Plan' aimed at upgrading 5 million properties by 2030. The initiative focuses on reducing energy bills through the installation of solar panels, heat pumps, and improved insulation.
Unveiled in January 2026, the plan sets ambitious targets, including equipping an additional 3 million homes with solar panels and achieving over 450,000 heat pump installations annually. The government anticipates the creation of 180,000 jobs and aims to lift up to one million families out of fuel poverty. The plan follows the previously introduced Boiler Upgrade Scheme (BUS), which provides £7,500 grants for homeowners switching to renewable heating systems.
Eligibility criteria for grant support under the Warm Homes Plan are still being finalised. Existing schemes, primarily aimed at lower-income households, are expected to continue. These include the Boiler Upgrade Scheme (BUS), offering a £7,500 grant towards heat pump installation, and local authority-led programmes such as the Warm Homes: Social Housing Fund and Warm Homes: Local Grant. Clarity on eligibility is essential for ensuring the plan reaches those most in need.
The push for solar panel installations is a key component of the plan. Good Energy estimates that a typical 10 panel, 4.75kW domestic solar and battery system can deliver between £950 and £1,400 a year in long-term savings and export earnings. This includes approximately £950 per year by using power at home and exporting excess power on Good Energy’s standard 15p/kWh Solar Savings export tariff. Long-term savings with a smart tariff using their standard 15p/kWh Solar Savings export tariff is estimated to be £1,400 a year. See our workings.
With millions of homes targeted for upgrades by 2030, installer capacity, equipment supply and grid connections are expected to tighten, pushing up prices and extending lead times for solar panel installations. Installing solar panels before this inevitable rush will secure your installation slot and lock in today’s pricing. Crucially, acting now doesn’t mean missing out later. Solar panels and batteries installed today are likely to benefit from future smart tariffs, export pricing and market reforms as they’re introduced. This means immediate bill savings and long-term protection from rising energy costs.
A typical 10 panel, 4.75kW domestic solar and battery system can deliver £950–£1,400 a year in long-term savings and export earnings. Every month you delay is money lost.
