The government has announced plans to extend the help available to households to install green technology in the form of solar panels, heat pumps, and batteries in their homes.
The £15 billion “Warm Homes Plan” will roll out over the next five years, offering grants and cheap loans to families who want to make their homes more energy-efficient. The goal is to triple the number of homes with solar panels and help one million people afford their heating costs.
Families can apply for financial help to install three main technologies:
- Solar panels to generate electricity from sunlight
- Heat pumps to replace gas boilers for heating
- Batteries to store extra energy for later use
The government will offer grants to cover part of the cost. For example, £7,500 will be offered towards a heat pump, although home owners will likely need to pay some money upfront. A heat pump typically costs around £5,000 after the grant is applied.
For an average three-bedroom home, installing all three technologies might save £500 to £1,000 per year on energy bills, according to government and charity estimates.
Prime Minister Keir Starmer says that every family deserves a warm home, not just wealthy ones. Energy Secretary Ed Miliband added that making these technologies affordable for everyone is key to tackling the cost-of-living crisis.
The plan includes special support for low-income families, who can get solar panels and batteries completely free. Homeowners and social housing residents will be eligible, while private renters will benefit from new rules requiring landlords to improve energy efficiency by 2030.
Details about how to apply are yet to be finalised and the government says discussions with banks and financial companies will be needed to set up the system.
Energy companies and unions welcomed the plan, saying the large investment will encourage more businesses to develop green technology and create jobs.
However, the proposal does have its critics. Some argue that the plan wastes taxpayer money on equipment mostly made in China (which supplied 68% of Britain’s solar panels last year). Others worry that high electricity prices will cancel out the savings from heat pumps.
One couple from Stowmarket who installed a heat pump two years ago said it was their best home improvement in 20 years, but that it only became affordable to run after they added solar panels.
The government hopes this plan will reduce Britain’s reliance on imported gas and oil. By switching to homegrown renewable energy, the government says that families will have more stable, predictable costs.
Around 18% of the UK’s carbon emissions come from heating homes, so moving away from gas boilers is also important for fighting climate change.
While some experts praise the focus on solar power as the most cost-effective option, others question whether heat pumps offer good value compared to other green technologies. The debate continues, but the government maintains that combining all three technologies will deliver the best results for families and the environment.