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Home energy efficiency grants

Home energy efficiency grants

Tom. Content Writer, Nottingham

Guide written by:

Tom. Content Writer, Nottingham

5 guides

In the current climate, making your home more energy efficient has never been more important. However, finding out which grants are available and if you are eligible for them, can be really confusing when it comes to financing renovation work. Read on to find out the current home energy efficiency grants available in the UK.

Undertaking home energy efficiency renovation work will undeniably result in greater comfort and savings on your energy bills in the long term, as well as help to reduce carbon emissions. There are also positives given that there are a number of grants available, depending on your financial status.

Here is a list of the grants that are currently available or that have recently expired in the UK (some are nation specific):

  • Boiler Upgrade Scheme (BUS) - England and Wales
  • Green Homes Grant - England
  • Renewable Heat Incentive (RHI) - England, Scotland or Wales
  • Energy Company Obligation (ECO) - Great Britain
  • Smart Export Guarantee (SEG) - England, Scotland or Wales
  • Other financial measures

The Boiler Upgrade Scheme (BUS) is a programme which has been put in place by the UK government to encourage homeowners to install sustainable heating systems, such as heat pumps and biomass boilers. The scheme will run from April 2022 to 2025. 

The scheme will entitle homeowners and small business owners to apply for financial help for the cost and the installation of:

  • Air source heat pumps - £5,000 off the cost and installation
  • Biomass boilers - also £5,000 off the cost and installation (will only apply to properties in rural locations and those not connected to the gas grid)
  • Ground source heat pumps - £6,000 off the cost and installation

This is an installer led scheme meaning that they will apply for the funding on your behalf and the grant will be deducted from the total amount that you pay for the installation and cost of the renewable heating system. 

There are, however, various criteria you must fulfill in order to apply for the scheme. Firstly, you must own your own home and the property must have an installation capacity of 45kWth. The property must also have a valid Energy Performance Certificate (EPC). Finally, this scheme is only available in England and Wales. There is a separate scheme for Scotland which is called Home Renewables where homeowners can get up to 40% cashback for certain measures to improve energy efficiency and up to 75% for some renewable heating systems. 

Find out more about the Boiler Upgrade Scheme here

The Green Homes Grant is the predecessor to the Boiler Upgrade Scheme and stopped accepting applications on 31st March 2021. However, if you applied for a voucher before this date, the application will still be treated. 

This programme entitled homeowners and landlords to apply for vouchers to cover two thirds of the cost of installing energy efficient home improvements. These vouchers covered the installation of insulation, heat pumps, solar water heating and biomass boilers. Moreover, applicants could also use these vouchers to make other energy saving measures to the home, such as installing new doors, double or triple glazing and other heating controls. This scheme only applied to England.

Find out more about the Green Homes Grant here

The Renewable Heat Incentive (RHI) is another grant that recently expired on 31st March 2022. In much the same way to the Green Homes Grant, if you applied to the scheme before this deadline, you should be unaffected. 

This scheme entitled homeowners or landlords to claim financial support for up to 7 years for the installation of renewable heating systems, such as biomass boilers, solar water heating and certain heat pumps. This scheme was available in England, Scotland and Wales. 

Find out more about the Renewable Heat Incentive here

The Energy Company Obligation (ECO) is not a government grant as such, but an obligation placed on energy suppliers to help households make energy-efficient improvements to the home and reduce fuel poverty for low income and vulnerable households. As a result, there are certain eligibility criteria that must be met. 

The ECO3 scheme closed in March 2022, however a new set of obligations placed on energy suppliers will be revealed soon and will run to 2026. As per the previous edition of the scheme, these obligations will most likely include helping households with the installation of cavity wall and loft insulation, as well as replacing inefficient boilers and heating systems with options that are beneficial to the planet and the consumer.

Find out more about the Energy Company Obligation here

The Smart Export Guarantee (SEG) is a government scheme put in place to help small suppliers of renewable energy who export this energy back to the national grid. Therefore, if you have solar PV panels, a wind turbine, hydro energy, an anaerobic digestion system or micro-combined heat and power, you may be entitled to payments depending on the amount of this renewable energy you export. 

However, there are certain eligibility criteria that need to be fulfilled, notably that these systems must be in Great Britain and that they have a capacity of 5MW, or up to 50kW for micro-combined heat and power systems. Payment is usually made by the SEG licensee.

Find out more about the Smart Export Guarantee here

Financial measures have also recently been announced by the UK government to promote the installation of renewable energy and energy efficient improvements to the home. In particular, VAT has been reduced from 5% to 0% for the installation of solar panels and energy-efficient materials.

Guide written by:

Tom. Content Writer, Nottingham, 5 guides

Tom. Content Writer, Nottingham

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