New Warm Homes Loan Scheme: Up to £20,000 towards a heat pump

The UK Government has launched a new Warm Homes Loan Scheme, giving homeowners another way to spread the cost of renewable energy improvements.

Announced on 27th October 2026, the scheme includes heat pumps, battery storage and solar panels, with participating lenders offering interest-free or reduced-interest loans.

For homeowners in Edinburgh and across Scotland, this could make the upfront cost of changing how a home is heated and powered much easier to manage.

How much can you borrow for a heat pump?

For qualifying air source heat pumps designed to provide central heating and hot water, supported loans can be available up to £20,000.  Battery storage and solar panels each have separate supported loan limits of up to £15,000.

These are maximum amounts rather than guaranteed funding.  What you can borrow will depend on the lender, your eligibility and affordability checks.  It is also important to remember that this is a loan scheme rather than a grant, so any money borrowed will need to be repaid.

Could this make heat pump installation more affordable for Edinburgh homeowners?

Yes, the upfront cost is one of the main questions we hear from homeowners considering an air source heat pump.  Being able to spread some or all of that cost through lower-cost finance can make installing a heat pump more realistic for households that have previously decided to stick with a traditional boiler.

At Celsius, our heat pump installation service starts with the property itself.  We look at factors such as heat loss, radiator sizes, insulation and the existing heating system before recommending what is suitable.

We currently install Vaillant air source heat pumps and can take customers through the process from the initial survey to the completed installation.

Could battery storage help you get more from a heat pump?

Yes, a battery can store electricity and make it available when you need it.  With a suitable electricity tariff, it may also be possible to charge the battery during cheaper periods and use that stored electricity when grid prices are higher.

When you add a heat pump into the mix, that ability to manage when your home uses electricity can become even more relevant.

Not every home needs a battery, but it is certainly worth considering as part of a wider home energy setup.

Battery storage is also included in the Warm Homes Loan Scheme, with supported loans of up to £15,000.  This is interesting for homeowners who are already thinking about moving more of their home energy use onto electricity.

What about solar panels?

Solar panels are also included in the new warm homes loan scheme, with supported loans of up to £15,000.  For some homes, the combination of a heat pump, battery storage and solar PV could provide more control over how electricity is generated, stored and used.

That does not mean every household needs all three technologies.

The best setup depends on the property, heating demand, electricity use, roof space and budget.  It is much better to start with what your home actually needs rather than simply adding technology for the sake of it.

Already have a heat pump? Celsius service them too!

The new loan scheme is likely to get more homeowners thinking about installing heat pumps, but there are already plenty of systems operating across Edinburgh and the surrounding areas.  Our team at Celsius also provide heat pump servicing throughout Edinburgh, East Lothian and Midlothian.

Just like any other heating system, regular servicing gives the engineer an opportunity to check that everything is operating correctly and identify potential problems before they become more serious.

Whether Celsius installed your heat pump or you have had the system for several years, you can book an annual heat pump service with our team.

What about Home Energy Scotland funding?

Scottish homeowners should also check what support may be available through Home Energy Scotland before deciding how to fund an installation.  The Warm Homes Loan Scheme sits alongside other home energy support, but the rules around combining different sources of government funding need to be checked for your individual project.

At the time of writing this, Home Energy Scotland offer grant funding of up to £7,500 for a new heat pump, with an additional £7,500 of funding available as an optional interest free loan.

Our advice is simple: find out what your home needs and what it is likely to cost first.  Once you have a realistic quotation, it becomes much easier to understand what funding or finance you may need.

Thinking about a Heat Pump or Battery Storage in Edinburgh?

The Warm Homes Loan Scheme gives Edinburgh homeowners another option when considering renewable heating and home energy storage.

If you are thinking about a new air source heat pump, already have a system that needs servicing, or want to explore whether battery storage could work alongside your heating setup, speak to Celsius.

We can help you understand what may be suitable for your property and what the next step should be.  Contact Celsius Plumbing and Heating to arrange a heat pump quotation, book a heat pump service or make a battery storage enquiry.