A Guide to Government Grants for Energy Efficiency

This page provides guidance for households across the UK seeking to improve home energy efficiency through government-supported grants.

It outlines available schemes, eligibility requirements, and application procedures, offering clear, accessible information to assist citizens in accessing funding.

Several government initiatives provide grants to help homeowners enhance their energy efficiency. These programs aim to decrease carbon emissions and alleviate energy costs for eligible individuals.

The Energy Company Obligation (ECO) scheme is central to the UK’s efforts to improve home energy efficiency. The current phase, ECO4 (running from 2022 to 2026), requires large energy firms to work with the government and invest more than £1 billion each year in installing energy-saving improvements.

ECO4 consists of three distinct obligations:

• Affordable Warmth: Targeted at low-income households to reduce fuel poverty.
• Community Carbon Reduction Obligation: Focused on whole-community improvements in carbon savings.
• Carbon Saving Obligation: Supports households in installing energy-efficient measures, irrespective of income under certain circumstances.

To qualify for heating and insulation grants supported by ECO, several criteria are considered: the property’s energy performance certificate (EPC) rating, the applicant’s location and household income, and whether the applicant has previously received similar grants. Individuals can start by completing an online eligibility check. If approved, accredited assessors will advise on the subsequent stages and keep applicant information for potential future funding.

Modern, energy-efficient boilers play a crucial role in lowering household energy consumption and carbon footprints. The Warm Homes initiative offers potential access to free or discounted boiler replacements for qualifying homeowners and tenants. 

• Eligibility: The Energy Company Obligation (ECO) framework provides boiler grants to qualifying households in England, Scotland, and Wales. Participating energy suppliers install high-efficiency (A-rated) boiler units at no or reduced cost for eligible properties.

Replacing an old boiler can lead to significant annual savings on home heating expenses for households. This upgrade also contributes to the UK’s national goals for reducing carbon emissions.

A variety of insulation measures are eligible for funding under government grant schemes:

• Loft Insulation: By insulating the roof space, households can prevent significant heat loss. The Energy Saving Trust estimates an annual saving of approximately £250 for a detached home with proper loft insulation.
• Room-in-Roof Insulation: Attic or loft room areas may be fully insulated to meet modern building standards. Grants cover materials and installation using the latest insulation techniques.
• Cavity Wall Insulation: Existing cavity walls can be filled with insulating materials such as polystyrene beads or foam, substantially improving thermal efficiency.
• Solid Wall Insulation: Homes with solid walls can be insulated internally, externally, or using hybrid systems. Solid walls, compared to cavity walls, allow significantly higher heat loss; insulating them effectively halves heat transfer.

All installations must comply with relevant PAS 2035 standards to ensure lasting efficiency and safety.

Energy efficiency grants increasingly support the deployment of low-carbon heating technologies:

• Air Source Heat Pumps (ASHPs): These systems extract heat from external air, even at low temperatures, and transfer it into the home for heating or hot water. Air-to-Water systems connect to traditional radiators or underfloor heating, while Air-to-Air systems circulate heated air through fans.
• Solar PV panels Solar panels convert sunlight into electricity, reducing reliance on grid power and lowering electricity costs. Households may benefit financially from the Smart Export Guarantee (SEG), earning income from surplus electricity exported back to the grid. As of 2025, eligible homes can save and earn a combined average of £235 per year through solar installations.

Accessing government-backed energy grants typically involves a structured process:

1. Research Available Schemes: Review official sources or contact a certified energy advisor to identify grants applicable to your home and situation.
2. Document Submission: Prepare required documentation, which may include proof of income, benefit entitlement, or property ownership.
3. Home Assessment: A certified evaluator will visit your property to determine its current energy performance and recommend specific upgrades.
4. Installation: Upon approval, an ECO-registered contractor will install the funded measures, ensuring full compliance with building regulations and ECO4 requirements.

Residents should ensure that all works are carried out by TrustMark-registered or Microgeneration Certification Scheme (MCS) certified installers where applicable.

The government’s commitment to energy efficiency extends across different sectors:

• Businesses: Small and medium-sized enterprises may access grants for upgrading lighting systems to LED, installing renewable heating, or improving building insulation.
• Public Sector Organisations: Schools, hospitals, and government buildings are eligible for funding to modernise heating systems, enhance ventilation, and insulate building fabrics.
• Private Residential Homes: Low-income homeowners and private tenants may access comprehensive grants for insulation, renewable energy installations, and heating system upgrades.

Each sector has dedicated schemes, and applicants should consult sector-specific guidance for tailored support.

To initiate your grant application process:

• Confirm your property’s Energy Performance Certificate (EPC).
• Verify eligibility through the eligibility checker.
• Contact Consumer Rights
• Prepare necessary documents to facilitate a prompt eligibility decision.
• Follow up with your local authority if applying under LA Flex provisions for additional flexibility.

If any issues arise during your application, refer to Ofgem’s ECO4 complaints and guidance page or consult the Energy Ombudsman Services for dispute resolution.