Households across the UK can now cut their energy bills by hundreds of pounds a year at no upfront cost by applying for interest-free or “low-interest” loans to fund upgrades such as heat pumps, batteries and solar panels.

The government-backed Warm Home Loans scheme, which launched on Tuesday, could mean thousands more households are able to access low-carbon energy alternative technologies, thanks to loans ranging from £7,500 to up £35,000.

Energy suppliers including British Gas and E.On have partnered with lenders from Tandem Bank and Homeserve respectively to offer the loans directly to customers at a discounted rate compared with those offered by high street lenders.

People interested in swapping their gas boiler for an air-source or ground-source heat pump could secure loans of up to £10,000 or £35,000 respectively, while also drawing on the government’s existing scheme which offers grants of up to £9,000 a year for households installing the replacements for fossil fuel heating.

Installing a heat…