Millions of homeowners could be set to receive cheap loans and grants for solar panels

Millions of homes could be offered grants and cheap loans to install solar panels as the government scrambles to hit its 2030 clean energy pledge.

Ministers are reportedly drawing up plans to subsidise the cost of fitting solar panels and batteries in houses across the country in a bid to meet one of Sir Keir Starmer’s key election pledges.

Labour’s manifesto promised to cut bills, create jobs and deliver energy security by moving to zero-carbon electricity by 2030, as part of the party’s push to accelerate the UK’s net zero drive.

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Earlier this month, energy secretary Ed Miliband set out “the most ambitious reform to the energy system in generations”, which would see the UK reliant on 95 per cent clean electricity by the end of the decade.

The plan set out how some subsidies for clean energy initiatives already existed and said ministers would “provide further details on how else solar could be supported” after the government’s spending review concludes in June.

“We are considering the role that finance may play in supporting homeowners with the upfront costs of energy efficiency improvements, solar panels and installing low-carbon heating,” the plan stated.

And, under plans being developed in Whitehall, fuel-poor households will be given upfront grants to install solar panels and batteries, while others could receive cheap loans to cover the costs of the work, it has been reported.

The loans could be repaid through bills, but at a lower cost than households are currently charged for electricity.

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Senior government sources told The Times the solar initiative was a “critical element” of the government’s clean energy plan, which could help significantly bring down bills and help consumers directly see the benefits of decarbonising electricity generation.

They added that it was also vital to hit the government’s target of installing 600,000 heat pumps a year by 2028.

“At the moment heat pumps cost more than boilers but can be as expensive to run because of the cost of electricity,” they said. “Installing rooftop solar along with battery storage has the potential to change that financial calculation.”

Ministers are also said to be considering hiking the amount homeowners can make by selling back any unused energy they generate to the grid, with the current price capped well below market levels.

The package of support would need Treasury approval, with fears it could end up being costly to manage without significantly boosting uptake.

Setting out the government’s clean energy plan this month, Mr Miliband said: “This is about harnessing the power of Britain’s natural resources to protect working people from the ravages of global energy markets.

“The clean power sprint is the national security, economic security, and social justice fight of our time.”

A spokesperson for the Department for Energy Security and Net Zero said: “As a first step towards the Warm Homes Plan, the government has committed an initial £3.4 billion over the next three years, with up to 300,000 households set to benefit from home upgrades next year alone.

“The Warm Homes Plan will ensure that new homes are fit for a net zero future, so people can generate their own electricity, cut their bills and at the same time help fight climate change.

“We will set out our full plans to help millions more households benefit from clean homegrown power once the Spending Review has concluded.”