Powering Warmth: UK Unveils £15 Billion Plan to Transform Homes
- Tharindu Ameresekere
- Jan 23
- 2 min read

The UK government has unveiled its new Warm Homes Plan, a major national initiative designed to cut household energy bills while accelerating the transition to clean energy and improved energy efficiency. The plan will provide millions of households with access to technologies such as solar panels, batteries, heat pumps and insulation, helping to make homes warmer, greener and more affordable to run.
At the heart of the initiative is £15 billion in government investment, which will be used to roll out upgrades to around 5 million homes by 2030. The government said the plan responds to record demand for home clean energy products, including solar panels and heat pumps. While the cost of these technologies has fallen in recent years, many households still struggle to afford them without support.
Prime Minister Keir Starmer described the plan as a “turning point” in tackling fuel poverty and high energy costs. “A warm home shouldn’t be a privilege, it should be a basic guarantee for every family in Britain,” he said, adding that the measures could lift up to one million people out of fuel poverty.

The Warm Homes Plan combines targeted support for low-income households with a universal offering. For vulnerable families, £5 billion has been allocated to fund free, comprehensive home upgrade packages. Meanwhile, the universal scheme will provide government-backed zero and low-interest loans for installing solar panels, batteries and heat pumps, alongside a £7,500 grant for heat pump installations. The government expects these measures to triple the number of homes with rooftop solar by the end of the decade.
Eligible upgrades include photovoltaic and thermal solar panels, air and ground source heat pumps, home batteries, smart controls, insulation and draught proofing. The plan also seeks to boost domestic manufacturing, aiming for at least 70% of heat pumps installed to be made in the UK, while tripling investment in the heat pump supply chain to £90 million.




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