UK Launches £15BN 'Warm Homes' Crusade to Give Free Solar Panels to Millions

Millions of British households are set to receive free solar panels, heat pumps and insulation under a £15 billion ($19.2 billion) government programme that Energy Secretary Ed Miliband says will 'wage war on fuel poverty.'

Miliband unveiled the Warm Homes Plan on 20 January, targeting up to five million properties by 2030. Ministers are billing it as the largest home retrofit scheme in British history, according to the Department for Energy Security and Net Zero.

'It is a scandal that millions of people in our country do not have the security of a home that is warm, affordable and safe,' Miliband said. 'With this investment, we embark on a national project to turn the tide.'

£5 Billion Ringfenced For Low-Income Households

The government is setting aside £5 billion ($6.4 billion) for families on low incomes. These households won't pay a penny. They'll get fully funded solar panel and battery installations worth between £9,000 and £12,000 ($11,500 and $15,400), depending on what suits their home.

For social housing, the plan takes a street-by-street approach. Entire estates could be upgraded at once, which cuts costs and keeps disruption to a minimum, Construction Enquirer reported.

Ministers reckon a typical three-bedroom semi kitted out with solar panels, a heat pump and battery storage could knock around £500 ($640) off annual bills.

Loans At Zero Interest For Everyone Else

It's not just about targeting the poorest. Any homeowner can now apply for government-backed loans at zero or low interest to install clean energy tech. The aim is to triple the number of homes with solar panels by 2030, which officials are calling a 'rooftop revolution.'

Heat pump grants of £7,500 ($9,600) stay in place. And for the first time, air-to-air units that double as cooling systems in summer will qualify for support, the BBC reported.

Prime Minister Keir Starmer didn't hold back. 'A warm home shouldn't be a privilege, it should be a basic guarantee for every family in Britain,' he said, calling the plan 'a turning point.'

Conservatives Hit Back

The Tories aren't buying it. Shadow Energy Secretary Claire Coutinho warned the scheme would backfire on the very families it's supposed to help.

'Unless the Government gets serious about cutting electricity bills now, many of these taxpayer-funded schemes will saddle households with high ongoing running costs every single year,' Coutinho told the BBC.

Still, the government points to its Future Homes Standard, kicking in early 2026, which will force builders to fit solar panels on all new homes. Officials say more than a million properties were built with inflated bills after the last government scrapped the Zero Carbon Homes standard. Home insulation installations crashed by over 90 per cent between 2010 and 2024, Housing Today noted.

1.6 Million Children Living In Cold, Damp Homes

The plan also goes after private landlords. Right now, 1.6 million children are living in rented homes plagued by cold, damp, or mould. Under the new rules, landlords will face tougher energy efficiency standards, though they'll get phased support to help cover costs.

Officials estimate these measures alone could pull half a million families out of fuel poverty by the end of the decade.

The £15 billion pot includes money for Scotland, Wales, and Northern Ireland. Combined with private investment, ministers expect the total to hit £38 billion ($48.7 billion) over this parliament, creating 180,000 jobs along the way.

Charities Welcome Move But Want More

A new Warm Homes Agency will run the whole thing, pulling together functions currently spread across different regulators and government bodies. The goal is to give homeowners one place to go for advice.

Adam Scorer, who runs fuel poverty charity National Energy Action, called it 'a welcome, landmark occasion.' But he stressed families need help now, not in five years.

Simon Francis from the End Fuel Poverty Coalition was cautiously optimistic, describing the scheme as 'a rescue mission for the coldest, dampest homes in Britain.' He's pushing for more action on electricity costs while families wait for upgrades, LBC reported.

Details on how to actually get those zero-interest loans? The government says that's coming later this year.