When it comes to reducing your energy bills and improving your home’s efficiency, the UK government and other organizations offer a range of financial assistance programs. From grants for insulation to schemes supporting renewable energy adoption, these initiatives aim to make homes more energy-efficient while reducing the country’s carbon footprint. This blog will help you find the UK energy grants you can claim for your home
Why Are Energy Grants Important
Energy grants are vital for promoting sustainable living and reducing the UK’s carbon footprint. They help individuals and families afford upgrades like better insulation, solar panels, and modern heating systems. By taking advantage of these grants, households not only save money but also contribute to the nation’s broader environmental goals, including achieving net-zero emissions by 2050.
Let’s delve into why these grants are essential:
- Affordability: The upfront cost of energy-saving technologies often deters homeowners. Grants bridge the gap by reducing these costs.
- Environmental Impact: Energy-efficient homes consume less power, reducing greenhouse gas emissions.
- Health Benefits: Proper insulation and heating systems improve indoor air quality and reduce issues like dampness, leading to better overall health.
- Economic Boost: These programs also support green jobs in sectors like construction and renewable energy.
1. The Energy Company Obligation (ECO) Scheme
The Energy Company Obligation (ECO) is one of the most well-known energy grants in the UK. Launched in 2013, the scheme compels large energy suppliers to fund energy-saving measures in eligible households.
Who Is Eligible?
- Low-income households or those receiving certain benefits (e.g., Universal Credit, Pension Credit).
- Homes that require significant energy efficiency improvements, such as wall insulation or new boilers.
What Does It Cover?
- Loft insulation.
- Cavity wall insulation.
- Boiler replacement or repair.
- Home heating controls.
How to Apply
- Check your eligibility through the Ofgem website.
- Contact your energy supplier or a certified installer to discuss available improvements.
- Arrange for a home survey to assess what upgrades your property needs.
The ECO scheme has undergone several updates, with ECO4 (launched in 2022) being the latest version. This phase focuses on improving the least energy-efficient homes, particularly those in fuel poverty.
2. The Green Homes Grant (Now Discontinued)
Although the Green Homes Grant scheme ended in March 2021, it’s worth mentioning as a historical reference. During its operation, this grant provided vouchers of up to £5,000 (or £10,000 for low-income households) to cover energy-saving improvements.
If you missed this opportunity, don’t worry—many of its objectives have been incorporated into ongoing schemes like ECO4 and the Local Authority Delivery Scheme.
3. The Boiler Upgrade Scheme (BUS)
The Boiler Upgrade Scheme (BUS) focuses on transitioning UK households to low-carbon heating systems.
Who Is Eligible?
- Homeowners and small landlords in England and Wales.
- Homes off the gas grid or using oil, coal, or direct electric heating systems.
What Does It Cover?
- Grants of up to £6,000 for air source heat pumps.
- Grants of up to £5,000 for biomass boilers (for rural properties only).
- Funding for ground source heat pumps.
How to Apply
- Find an MCS-certified installer through the Boiler Upgrade Scheme website.
- The installer applies for the grant on your behalf.
- The grant amount is deducted directly from the installation cost.
This scheme aligns with the UK government’s goal to phase out fossil fuel boilers in new homes by 2025.
4. Renewable Heat Incentive (RHI)
The Renewable Heat Incentive (RHI) was designed to reward homeowners for generating renewable heat. Although it ended for new applicants in March 2022, those already enrolled will continue receiving payments for seven years.
For those seeking similar benefits, the Boiler Upgrade Scheme is a viable alternative.
5. Home Upgrade Grant (HUG)
The Home Upgrade Grant is part of the UK government’s broader strategy to decarbonize housing. This grant focuses on off-gas grid homes with poor energy efficiency ratings (EPC bands D-G).
Who Is Eligible?
- Low-income households or those at risk of fuel poverty.
- Homes in rural or remote areas.
What Does It Cover?
- External wall insulation.
- Solar panels.
- Heat pumps.
- Draft-proofing.
How to Apply
Applications are managed by local councils. Check your council’s website or contact their housing department for details.
6. Local Authority Delivery (LAD) Scheme
The LAD scheme is part of the Green Homes Grant initiative, aimed at helping low-income households improve energy efficiency.
Who Is Eligible?
- Households earning less than £30,000 annually.
- Properties with an EPC rating of E, F, or G.
What Does It Cover?
- Wall and roof insulation.
- Double glazing.
- Energy-efficient doors.
How to Apply
Local councils administer this scheme. Visit your council’s website to check if funding is available in your area.
7. Smart Export Guarantee (SEG)
The Smart Export Guarantee incentivizes renewable energy generation by paying households for excess energy they export to the National Grid.
Who Is Eligible?
- Homeowners with solar panels, wind turbines, or other renewable energy systems.
What Does It Cover?
- Payments for exported electricity (per kWh).
How to Apply
- Install a qualifying renewable energy system.
- Contact an SEG licensee to arrange a tariff.
- Monitor your exports through a smart meter.
Learn more about SEG through the Ofgem website.
8. Warm Home Discount
The Warm Home Discount provides a one-off annual payment to eligible households to help with winter heating bills.
Who Is Eligible?
- Pensioners receiving the Guarantee Credit element of Pension Credit.
- Low-income households identified by their energy supplier.
What Does It Cover?
- A £150 discount on electricity bills.
How to Apply
The scheme is mostly automatic but check with your energy supplier to confirm your eligibility.
9. Winter Fuel Payment
The Winter Fuel Payment helps older people cover their heating costs during the colder months.
Who Is Eligible?
- Individuals born on or before 25 September 1957.
What Does It Cover?
- Payments ranging from £250 to £600, depending on circumstances.
How to Apply
Most eligible individuals receive this payment automatically. If you haven’t, contact the Winter Fuel Payment Centre.
10. Cold Weather Payment
This scheme provides additional support during periods of extremely cold weather.
Who Is Eligible?
- Individuals receiving certain benefits (e.g., Universal Credit or Pension Credit).
What Does It Cover?
- £25 for each seven-day period of sub-zero temperatures.
How to Apply
Payments are automatic if you qualify.
Maximizing Your Savings
To get the most out of these grants:
- Conduct an energy audit to determine your home’s needs.
- Research all available schemes to ensure you apply for every grant you qualify for.
- Combine multiple grants, where allowed, for maximum benefits.
Useful Resources
By taking advantage of the UK energy grants you can claim for your home, you can significantly reduce your energy costs while contributing to a more sustainable future. Start your journey to a greener, more efficient home today!