What was the Green Homes Grant?

What Replaced the Green Homes Grant?

Although the Green Homes Grant has ended, several other schemes now provide funding for energy efficiency and low-carbon heating improvements.

These include:

• The Boiler Upgrade Scheme (BUS): launched in April 2022, offering grants to help install air source heat pumps, ground source heat pumps, and biomass boilers in place of fossil fuel systems.
• The Local Authority Delivery (LAD) Scheme: provides funding to local councils in England to support low-income households with insulation and low-carbon heating.
• ECO4 and LA Flex schemes: help low-income households across the UK install insulation, renewable heating, and other energy-saving measures.
• Great British Insulation Scheme (GBIS): helped households access insulation measures such as wall or loft insulation until it closed on 31 March 2026.

These schemes are now overseen by the Department for Energy Security and Net Zero (DESNZ), which replaced BEIS for energy and climate policy in 2023.

Who Is Eligible?

Eligibility varies depending on the scheme, but in general, support is targeted at:

• Households with an annual income of £31,000 or less, or £20,000 or less after housing costs.
• Homes with an Energy Performance Certificate (EPC) rating of D, E, F, or G.
• Properties not connected to the mains gas grid.
• Social housing tenants or homeowners living in energy-inefficient homes.

Understanding EPC Ratings

An Energy Performance Certificate (EPC) measures a property’s energy efficiency, rated from A (most efficient) to G (least efficient).

You’ll need an EPC when:

• Selling a property.
• Renting out a property.
• Building a new property.

Each certificate includes:

• Details about the property’s energy use and estimated costs.
• Recommendations for improving efficiency and cutting bills.
• A validity period of 10 years.

In Scotland, EPCs are also required when selling or renting property, though rules differ slightly from England and Wales.

Why Was the Green Homes Grant Scrapped?

The Green Homes Grant was launched quickly during the COVID-19 pandemic to support both households and the construction sector. However, its rollout faced major challenges:

• Unrealistic deadlines and a short delivery window.
• Complex application processes.
• Delays in payments to installers.
• Insufficient numbers of accredited contractors.

By mid-2021, more than half of homeowner applications had been withdrawn or rejected, and nearly half of registered installers had left the programme.

Many commentators, including environmental groups like Greenpeace UK, described the rollout as “shambolic”. The government later acknowledged design and implementation failures.

What Lessons Were Learned?

The Green Homes Grant aimed to invest £2 billion to retrofit over 600,000 homes, but only a fraction of that was delivered before closure.

Delays in payments and poor administration meant some small contractors were left out of pocket, while homeowners missed out on promised support.

Despite its problems, the scheme highlighted the strong public demand for affordable home energy upgrades and shaped future initiatives under DESNZ and local authority-led programmes.

Will There Be a Replacement?

While the Green Homes Grant will not return, the government remains committed to cutting emissions from homes as part of the UK’s net zero by 2050 target.

Future funding focuses on:

• Local authority-led retrofit schemes.
• Low-carbon heating installations through the Boiler Upgrade Scheme.
• National programmes such as ECO4, which support vulnerable and low-income households.

These initiatives aim to reduce emissions from buildings by 68% by 2030, compared with 1990 levels.

What Upgrades Were Covered by the Green Homes Grant?

When it was active, the scheme funded a wide range of energy-saving improvements, including:

• Loft, cavity wall, underfloor, and solid wall insulation.
• Park home insulation.
• Ground and air source heat pumps.
• Biomass boilers.
• Solar thermal panels.
• Double or triple glazing (when replacing single glazing).
• Secondary glazing and energy-efficient doors.

The grant covered up to two-thirds of installation costs, but in practice, many homeowners received less due to strict eligibility limits and budget shortfalls.

What Can You Apply for Now?

If you missed the Green Homes Grant, you may still qualify for funding under:

• Free home battery scheme: apply for a free home battery.
• Boiler Upgrade Scheme: Grants for heat pumps and biomass boilers.
• Warm Homes: Local Grant: Free energy-saving home improvements.

These newer schemes are more streamlined and effective, helping more households make lasting improvements to their energy efficiency and comfort.

The Green Homes Grant was an ambitious but short-lived attempt to boost home energy efficiency in England. While the scheme failed to meet expectations, it paved the way for more sustainable, better-managed programmes now led by DESNZ. 

Don’t Forget

If you’re on a low income, receive benefits, or live in a property with a low EPC rating, there may still be help with home energy improvements. ECO4 runs until 31 December 2026, but Consumer Rights can no longer help with ECO4 applications, and the Great British Insulation Scheme closed on 31 March 2026.

You can apply for a free home battery or see current home-energy grants.

Useful Resources:

• Department for Energy Security and Net Zero (DESNZ)
• Boiler Upgrade Scheme
• Warm Homes: Local Grant

Cost of Living Support Available:

• Household Support Fund (England)
• Cost of Living Payments
• Support for Mortgage Interest (SMI)
• Mortgage Guarantee Scheme
• Council Tax Reduction

Other Support Available:

• Household Support Fund
• Cold Weather Payment
• Cost of Living
• Fuel Vouchers