Warm Homes Fund: innovative finance for investments and loans
This consultation is open for responses
Respond to this consultationSummary
DESNZ launches consultation on a £5 billion Warm Homes Fund offering government-backed loans and investments for domestic solar, batteries, heat pumps, and energy efficiency measures. The fund targets upfront cost barriers through financial transactions rather than grants. Consultation closes on an unspecified date seeking views from installers, manufacturers, housing providers, and finance institutions on fund design and target groups.
Why it matters
This addresses symptoms of expensive energy through subsidised finance rather than fixing supply constraints or market structure that make energy expensive. As such, it represents redistribution that may increase demand for technologies without addressing grid capacity or connection constraints that limit deployment.
Key facts
- •£5 billion government capital allocation
- •Covers domestic solar, batteries, clean heat, and energy efficiency
- •Financial transactions model (loans/investments, not grants)
- •Targets upfront cost barriers
Areas affected
Related programmes
Memo
The Warm Homes Fund will have £5 billion of capital for investment via financial transactions, and could deliver a massive increase in the investment going into low carbon technologies by overcoming barriers to deployment and adoption, such as upfront costs. We would like to gather information and views that will help inform the design of the Warm Homes Fund so that it best meets our aims. This call seeks views and evidence on: the draft aims and scope of the Warm Homes Fund the strategic opportunities and challenges of utilising government finance to drive forward the deployment of domestic solar, batteries, clean heat and energy efficiency measures specific use cases and target groups where the Warm Homes Fund might have the most impact The call for evidence is aimed at: installers manufacturers industry and consumer groups local government social housing providers public finance institutions financial services sector general public Read the Call for Evidence documents on GOV.UK .