The UK government has confirmed that the Warm Homes Plan will be backed by £13.2 billion in funding, enabling households to save money on bills.
As well as insulation and other energy efficiency measures, the Warm Homes Plan will unlock savings toward a headline total of £600 off energy bills by helping consumers install “heat pumps and other low-carbon technologies, such as solar panels and batteries”.
The Spending Review 2025 (SR25) confirmed £13.2 billion in spending between 2025-26 and 2029-30 for the scheme, which has been well received, as has the more general capital boost for the clean energy sector.
Caroline Bragg, chief executive of ADE, a trade body for the heat network and demand side energy sectors, called the Warm Homes funding “a tectonic shift”.
The news comes as energy secretary Ed Miliband assured that the Future Homes Standard will mandate that every newly built home in the UK will have rooftop solar PV installed.
Trade association for the solar industry Solar Energy UK said it looks forward to seeing further details of the Warm Homes Plan in the autumn, alongside the next Carbon Budget and Growth Delivery Plan.
Solar Energy UK’s chief executive, and co-chair of the government’s Solar Taskforce, Chris Hewett, pointed out that supporting this huge uptick in solar installation will require a highly skilled workforce.
That is why, he said: “We are also delighted to see £1.2bn per year earmarked for training and apprenticeships. Ensuring that the workforce has the skills to meet our commitments to decarbonise the grid is of vital importance and will be a key theme in the Government-industry Solar Roadmap”.
The long awaited Solar Roadmap will lay out the practical measures needed to meet the government’s aspirations for the solar sector. According to the trade body, it is “anticipated shortly”.
GB Energy funding
According to the government, SR25 “capitalises on the growth opportunities of accelerating to net zero by supporting key decarbonisation sectors, delivering jobs and local growth”.
The review document, which shows that DESNZ will see a 16% increase in overall departmental spending, reaching £12.6 billion by the 2028-29 period, says the increase in public money is needed to mobilise private investment. This has been consistent messaging around the funding for GB Energy, which is intended to act as a catalyst for private financing for renewable generation in the UK.
The total capitalisation to be received by the state-owned energy company GB Energy by 2030 will be £8.3 billion, despite rumours this would be reduced. However this total is given as a shared amount for Great British Energy and Great British Energy – Nuclear, with the latter to receive £2.5 billion, from the funding allocated to both bodies, to support the development of small modular reactors (SMRs).
Additional coverage of the Spending Review is available on our sister site, Current±.
Our publisher Solar Media will host the UK Solar Summit on 1-2 July this year. Join us at the UK Solar Summit 2025 for your essential annual update to discover how your business can thrive in this dynamic and fast-growing sector.
