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There are several government grants available for homeowners to meet the energy efficiency standards. Most of these grants cover various energy efficiency measures such as providing boilers, installing heating systems, heat pumps, and house insulations. Some of the government grants also provide solar panels for sustainable energy.
All government grants for homeowners have different objectives, some purely help energy efficiency measures, while others contribute to net-zero emissions. But all of the measures ultimately help the beneficiaries of these schemes.
In this article, we will be exploring some of the government grants for homeowners to help their energy efficiency requirements. We will also state the measure each of the grants takes to help the cause.
Energy Efficiency Government Grants for Homeowners
Among the unlimited grants available, striving to help households save on energy costs and be more cosier, below are some highly effective ones. We have provided all the information about these grants below, from measures to eligibility criteria. So, without further ado, let’s dig deeper into the details.
1. Energy Company Obligation Phase 4 (ECO4)
Energy Company Obligation scheme is a government grant for homeowners and private tenants struggling to keep their homes warmer, meet the EPC standards, and tired of high energy costs.
Vulnerable households who can support their energy efficiency measure and are eligible for the scheme can get the heating systems upgraded for free.
ECO4 scheme supports measures like free boiler installations, air source heat pump installation, central heating system, and various types of insulations.
In the boiler upgrade, new condensing boilers such as combi, system, and regular boilers are installed. These boilers are usually more energy efficient and leave less carbon emissions.
Air source heat pumps cover both air to air and air to water heat pumps, while insulations involve cavity wall, loft, and every insulation you may require. Furthermore, all of these measures are absolutely free for the property owners.
Eligibility Criteria:
To qualify for ECO4 heating grants, you need to meet the following eligibility criteria:
- Benefit Recipient
- Homeowner or Tenants With Permission
- Boiler Installed Before 2005 (Non-condensing)
- Gas Metre Installed Before April 2022
- Eligible Property Style
- Epc Rating D or Lower
If you meet the eligibility criteria, you can get your entire heating system upgrade to the latest energy efficient heating systems.
2. Boiler Upgrade Scheme (Bus)
Boiler Upgrade Scheme is a UK government initiative which aims to upgrade the old, non-condensing boilers of UK households to new energy efficient ones. This scheme targets the households of England and Wales specifically and gives them capital grants.
These grants usually cover installation of heat pumps and biomass heat boilers to support the energy efficiency requirements. The main goal of this scheme is the decarbonisation of heat in the residential buildings.
As of 2024, this scheme has a total budget of £180 million, which will be increased to £295 million by 2025/26. With this budget, the installers can apply on the house owner’s behalf to get:
- £7500 off for the air source heat heat pump costs and installation.
- £7500 off on ground source and water source heat pump cost + installation
- £5000 off on purchase and installation of biomass boiler.
However, to qualify for government grants for homeowners, you need to meet the following criteria:
Eligibility Criteria:
- The property must be of eligible type (newly constructed properties are not eligible).
- EPC with no loft or cavity wall insulation recommendations (not older than 10 years).
Social housings and home owners already receiving energy efficiency grants under ECO4 scheme are not eligible for BUS.
3. Home Upgrade Grant 2 (HUG2)
Home Upgrade Grant 2 also known as HUG2 is a government funded local authority scheme for off gas grid properties. These properties are often neglected by all the government schemes, so HUG2 specifically focussed on this one.
This scheme delivers free home heating system upgrades for homeowners struggling to keep their houses warm or pay the energy costs. But these grants are available for households in England only, who are off the gas station.
This scheme is initiated by the department of energy security and net zero for vulnerable households. The main goal of this scheme is to reduce the carbon emissions from residential heating.
Eligibility Criteria:
Here is the eligibility criteria to qualify for this scheme:
- Low-Income Households
- Houses are Off gas grid
- Have an EPC rating between D and E.
- Lives in a qualifying local authority area.
Furthermore, to check if you live in an eligible local authority area, you can check simply by entering the postcode on a tool provided on the government website.
4. Great British Insulation Scheme
Previously known as ECO+, the Great British Insulation Scheme is another energy efficiency scheme by the UK government to support vulnerable households. Unlike ECO4’s approach of whole house measures, the insulation scheme only delivers single insulation measures.
Whether you are a house owner, landlord, or tenant, you can apply for these insulation measures to make your home more energy efficient.
Under this scheme, you can get loft insulations and wall cavity insulation. However, as per your unique needs, you may get other types of insulation as well, which will be decided by the energy supplier.
Eligibility Criteria:
- Energy Performance Certificate (EPC) rating between D and G.
- Council Tax Band of A-D in England and A-E in Scotland and Wales.
Check your Eligibility Now
If you are receiving benefits from the UK Government then you might be eligible for free insulation grants.
How Do Energy Efficiency Grants Impact Home Value?
Energy efficiency grants help households save on energy costs, be more energy efficient and cosier, and meet the EPC rating standards. These grants are designed to help vulnerable households be warmer and energy efficient.
Here is how these grants impacts the home value:
Increased Resale Value
As far as the value of the house is concerned, these grants increase their resale value. While renting or selling a house in the UK, the EPC rating is determined, which helps buyers determine the suitable value for the property. These grants improve the EPC rating of households.
According to Nationwide, the houses with an EPC rating of A or B were 1.7% premium in pricing as compared to EPC rating D homes. While the EPC F or G are 3.5% less expensive than EPC D homes of similar property.
Final Thoughts
To summarize this guide, there are several government grants for homeowners available in the UK to meet the energy efficiency standards. Apart from energy efficiency standards, the grants are for vulnerable households struggling to keep their homes warmer and paying the energy bills.
Each of the grants has separate eligibility criteria where some are specified and others are decided by the local authorities at the time of application. In this blog, we have compiled a list of currently running government grants for households to improve their energy efficiency ratings.
Frequently Asked Questions
You bet there are! 2025 has brought some AMAZING changes to the UK’s heating grant landscape! The government has supercharged several key programs with exciting new features:
- The Boiler Upgrade Scheme now offers a whopping £7,500 for heat pumps – that’s a fantastic increase from previous years!
- Planning restrictions for heat pump installations have been dramatically simplified, removing those frustrating barriers that used to slow everything down!
- The brand-new Warm Homes Plan has been launched, targeting an incredible 300,000 homes for energy upgrades each year!
- Local authority grants have received additional funding, meaning MORE opportunities for homeowners in disadvantaged areas!
Isn’t it wonderful to see such a strong commitment to helping homeowners go green while saving money? These enhancements make 2025 the PERFECT year to upgrade your heating system!
Absolutely YES! Are you a property owner with tenants? These grants could be perfect for you too!
Landlords can indeed apply for most heating grants, with some fantastic benefits:
- The Boiler Upgrade Scheme is available to landlords who want to install eco-friendly heating in their rental properties!
- The ECO scheme may cover properties where tenants meet the income or benefits criteria!
- Upgrading your rental property could increase its value AND attract quality tenants who value energy efficiency!
- You’ll be ahead of upcoming Minimum Energy Efficiency Standards (MEES) that are getting stricter each year!
Just imagine – happier tenants with lower bills, a more valuable property, AND doing your bit for the environment! What landlord wouldn’t want that incredible combination?
The Warm Homes Plan is a game-changer with an AMAZING range of upgrades available! This exciting initiative covers:
- Heat pump installations that transform how your home is heated!
- Modern, high-efficiency boiler replacements that slash energy use!
- Comprehensive insulation packages including loft, cavity wall, and solid wall insulation!
- Energy-efficient windows and doors to eliminate those pesky drafts!
- Smart heating controls that let you manage your energy use from your phone!
- Solar panel installations to generate your own electricity!
The best part? Many households qualify for multiple upgrades as part of a complete home energy makeover! Wouldn’t it be fantastic to have several of these improvements working together to transform your home?
Get ready for some INCREDIBLE savings! The Warm Homes Plan could revolutionize your household budget in ways you might not have imagined!
Households benefiting from the Warm Homes Plan typically experience:
- Energy bill reductions of 25-50% – imagine what you could do with that extra money each month!
- Protection against future energy price rises that seem almost certain to happen!
- Improved comfort with fewer cold spots and drafts – no more bundling up indoors!
- Enhanced property value that could add thousands to your home’s worth!
One recent study showed the average family saved £580 per year after completing their Warm Homes Plan upgrades! Isn’t that the kind of saving that could make a real difference to your household finances?
Get Your ECO4 Grant
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