The government has unveiled a plan to make solar panels and other green technologies more accessible to households, potentially saving them thousands of pounds on their energy bills.

The Warm Homes Plan, a £15 billion initiative, aims to support households across the UK over the next five years, while also introducing new rights for renters, in a bid to tackle rising energy costs.

As part of its efforts to create a "rooftop revolution," the government seeks to triple the number of homes with solar panels and help one million people escape fuel poverty.

While the energy and finance industries have welcomed the plan, the Conservative Party has expressed concerns that it may lead to high ongoing costs for households.

Initially announced in 2024, the Warm Homes Plan has taken two years to come to fruition, with the final details being published on Wednesday.

The plan focuses on providing funding for solar panels, heat pumps, and batteries through low-interest loans and grants, which will be made available to households across the UK.

Even with grants, households that can afford to pay may still face additional costs when installing these technologies, such as the average £5,000 cost of a heat pump after the subsidy.

However, the government estimates that installing these technologies could save an average of £500 per year on energy bills for a three-bedroom semi-detached home.

According to estimates by social charity Nesta and green energy charity MCS Foundation, the potential savings could be even higher, exceeding £1,000.

Prime Minister Sir Keir Starmer emphasized that having a warm home should be a basic guarantee for every family in Britain, rather than a privilege.

Ed Miliband stressed the importance of addressing the cost of living crisis, highlighting that upgrading homes is crucial to reducing energy bills.

The Energy Secretary explained that the plan aims to expand people's choices, making technologies like heat pumps and solar panels more accessible to a wider range of households, not just the wealthiest.

Key measures included in the plan are designed to support households in reducing their energy bills and carbon footprint.

The energy industry, workers' unions, and finance sector have all welcomed the plan, citing the government's long-term financial commitment as a crucial factor in driving private investment in green technologies.

Dhara Vyas, chief executive of Energy UK, praised the £15 billion commitment, stating that it provides certainty for investors and businesses in the energy market.

Camilla Born, CEO of Electrify Britain, also welcomed the announcement, emphasizing that it will help cut energy bills in the long term, but stressed the need for effective delivery.

While some schemes are already distributing grants, the government has yet to decide on the details of how and when new funding will be made available to households, citing the need for further engagement with the finance sector.

Reform deputy leader Richard Tice strongly criticized the plan, arguing that it represents a wasteful use of up to £15 billion of taxpayers' money, primarily on imported solar panels, batteries, and heat pumps.

According to HMRC trade data, 68% of the solar panels imported by the UK in 2024 came from China, highlighting the country's reliance on foreign suppliers.

Miliband acknowledged the need to diversify supply chains, stating that the government is working to reduce dependence on imported technologies through investments in the UK.

The government expects the scheme to create 180,000 new jobs in the clean heating sector, although some of these may come from retraining existing engineers.

The original plan had focused on increasing insulation in homes, but controversy surrounding a government-funded insulation scheme has led to a shift in focus towards green technologies.

The ECO insulation scheme, which was marred by botched installations, will not be extended, prompting the government to refocus its efforts on more effective solutions.

Aadil Qureshi, CEO of Heat Geek, supported the decision to prioritize green technologies, arguing that they offer better value for government money.

Qureshi emphasized that heat pumps, in particular, are a relatively new technology that requires government support to drive industry growth.

The plan is expected to catalyze investment in the industry, allowing manufacturers and investors to commit to further development and make green technologies more competitive with traditional alternatives.

By promoting the adoption of electrical heat pumps and renewable energy, the government aims to reduce the country's carbon emissions from home heating, which account for around 18% of the UK's total emissions.

Many individuals have shared their experiences with low-carbon technologies, such as heat pumps, with BBC Your Voice.

One couple, Chris and Penny Harcourt, who installed a heat pump two years ago, reported that it was the best update they had made to their home in 20 years, but noted that it was expensive to run until they installed solar panels.

The couple's experience highlights the potential benefits of combining different green technologies to reduce energy costs.

A conversation between BBC Climate Editor Justin Rowlatt and Penny Harcourt can be viewed below.

While heat pumps can be three to four times more efficient than gas boilers, higher electricity prices can offset these gains, making them equally or more expensive to run.

The government remains committed to transitioning households away from gas heating, citing the need to reduce reliance on fossil fuels.

Miliband has previously emphasized the importance of clean power in reducing energy bills, arguing that the UK's dependence on fossil fuels is a vulnerability that must be addressed.

Speaking on Radio 4's Today programme, Miliband highlighted the impact of Russia's invasion of Ukraine on gas prices, underscoring the need for a transition to clean power.

He emphasized that the UK is seeking to replace its reliance on imported gas with homegrown clean power, allowing for greater control over energy prices.

However, the UK currently has some of the highest electricity bills in Europe, due to factors such as network upgrades, government taxes, and wholesale prices driven by gas prices.

Shadow energy secretary Claire Coutinho argued that the government must take action to reduce electricity bills, warning that failure to do so will result in taxpayer-funded schemes saddling households with high ongoing costs.

The Liberal Democrats criticized the plan for not going far enough, arguing that it leaves a gap in fuel poverty programming for the current winter.

The government is pinning its hopes on a significant increase in solar panel adoption to help address the energy crisis.

The Warm Homes Plan aims to promote the adoption of three key low-carbon technologies: heat pumps, solar panels, and batteries, among households.

By increasing the use of home-generated solar energy to power heat pumps, the plan seeks to reduce reliance on the grid, which could lead to lower electricity prices.

However, not all stakeholders in the green industry are unanimous in their support for the plan's measures, with Dale Vince, CEO of Ecotricity, welcoming the new solar funding while expressing concerns about the level of subsidy for heat pumps.

Vince acknowledged that heat pumps have a role to play, but argued that they are not the most effective solution for reducing national heating costs and greenhouse gas emissions.

According to Vince, "Solar panels offer the most cost-effective solution, being the cheapest to install and the most productive in terms of reducing energy bills, whereas heat pumps are at the opposite end of the spectrum."

Vince suggested that the resources could be used to install solar panels on 10 million rooftops, rather than heat pumps in one million homes.

The plan's low-carbon technology installation initiative will be limited to homeowners and social housing residents, but it also includes recent reforms aimed at strengthening renters' rights.

As of 2030, landlords will be required to ensure their rental properties meet a minimum energy efficiency standard of EPC C, an upgrade from the current E rating.

Currently, the EPC scoring system is based on estimated energy costs, rather than actual energy efficiency, which can result in a lower score after a heat pump is installed.

The government has announced plans to review and revise the EPC assessment process later this year as part of the Warm Homes Plan.

The industry had been expecting the plan to outline updated efficiency standards for new buildings, known as the Future Homes Standard, but these are now scheduled to be published in the coming months.

There were concerns that the requirement for solar panels on new homes might be scrapped, but the plan confirms that new homes will be required to have low-carbon heating, high energy efficiency, and solar panels by default.

The plan states that new homes will be built with these features, addressing concerns about the potential removal of solar panel requirements.

According to Jess Ralston, Energy Analyst at the Energy and Climate Intelligence Unit (ECIU), these developments have been long awaited.

Ralston noted that while the delayed timelines may be frustrating for those struggling with poor living conditions, the public's support for better standards in new builds should be encouraging, as the new requirements will ultimately benefit householders.

Additional reporting by Miho Tanaka.