Energy Grants
UK Government Grants are available on all home heating products to Help Households Reduce Their Bills
Many people do not realise they qualify please enquire with one of our advisors for information, for those who unfortunately don’t qualify. Part funding and 0% loans are available with between 5 and ten years warranty on products.
For those who unfortunately don’t qualify for an UK government grant Part funding and 0% loans are available with between 5 and ten years warranty on gas boilers with prices starting at £1,499.
Are you suitable for the £7,500* cash back grant?
Funding and Grants
The governments of the UK; England Scotland, Ireland, and Wales are actively implementing comprehensive programs aimed at reducing carbon emissions and combating fuel poverty throughout the United Kingdom. These initiatives offer a range of options to improve heating systems, including air source heat pumps, gas boilers, electric heating, and solar panels. NEW PAGE Funding and grants The primary focus of these efforts is to provide assistance to lowincome and vulnerable households. However, there are also various funding sources available to incentivize green energy projects for medium and high-income earners, as well as businesses. Several programs and schemes have been established to support this initiative:
ECO3 and ECO4, which represent phases of the Energy Company Obligation (ECO) scheme, a pivotal policy aimed at enhancing energy efficiency in homes. ECO3, the third phase, concluded on 30 June 2022, paving the way for ECO4, the final stage, which is set to extend from July 2022 until March 2026. ECO4 brings along notable modifications to the regulations, including revisions to the list of eligible benefits.
Enhancing the energy efficiency of our residences stands as a paramount long-term strategy in curbing energy expenditures and addressing fuel poverty. Moreover, it plays a pivotal role in our journey towards achieving net-zero emissions while nurturing local employment opportunities and economic growth.
The recent surge in energy prices has underscored the pivotal role of energy efficiency, particularly for low-income households. Insulating dwellings and upgrading heating systems not only lead to reduced energy costs but also foster more comfortable living spaces, consequently bolstering the well-being of residents. These enhancements hold favorable ramifications for both individuals and the broader society, contributing to an overall uplift in societal and economic well-being.
The Energy Company Obligation has emerged as a cornerstone of domestic energy efficiency policies, benefiting approximately 2.4 million homes since its inception in 2013. To sustain and advance this momentum, we’ve committed to extending the scheme until 2026, allocating a substantial annual budget of £1 billion. As we approach critical milestones like the 2025 fuel poverty target and the 2030 agenda, the need for scheme reforms becomes evident. Our focus will be sharper on households facing low incomes and vulnerabilities, primarily those residing in less efficient residences. The ultimate goal is to orchestrate comprehensive property upgrades that drive transformative outcomes.
The Problem
Across the UK, huge numbers of tenants are struggling with the rising costs of their heating and energy bills. In most cases this is due to older homes have old, wasteful or defective boilers, and or poor insulation.
Qualifying Benefits under ECO4
Under ECO4, the qualifying benefits for grant eligibility encompass:
- Child Benefit*
- Child Tax Credit
- Employment and Support Allowance (ESA) - Income Based
- Housing Benefit - newly added to the eligible benefits
- Income Support
- Jobseekers Allowance (JSA) - Income Based
- Pension Credit Guarantee Credit
- Pension Credit Savings Credit - newly added to the eligible benefits
- Universal Credit
- Working Tax Credit
*If Child Benefit is the sole benefit you receive, you’ll need to fulfill an income assessment (there are no income prerequisites if you receive any other listed benefits).
Income Thresholds for Child Benefit Recipients under ECO4 Rules
For those exclusively receiving Child Benefit, the income thresholds (maximum annual household income to qualify) under ECO4 are as follows:
- Single adult with 1 child: £19,900
- Single adult with 2 children: £24,800
- Single adult with 3 children: £29,600
- Single adult with 4 or more children: £34,500
- Couple with 1 child: £27,500
- Couple with 2 children: £32,300
- Couple with 3 children: £37,200
- Couple with 4 or more children: £42,000
LA Flex
Welcome to our ECO FLEX program, an initiative aimed at improving energy efficiency and comfort in your home. We believe that everyone should have access to cost-effective measures that not only make their living spaces more energy-efficient but also contribute to substantial savings on energy bills.
Eligibility Criteria
You qualify for ECO FLEX if your household income is £30,000 or less, and if any of the following criteria apply to you:
Introducing La Flex
Our program introduces a special category called “La Flex,” which is designed to extend extra support to specific individuals who may face unique energy-related challenges. If you belong to any of the following groups, you automatically qualify for this enhanced assistance:
- Aged over 60, with a special focus on those over 75 years old.
- Families with children under 5 and pregnant mothers.
- Individuals with respiratory diseases, such as COPD and asthma.
- Those diagnosed with cardiovascular diseases, such as ischaemic heart disease and cerebrovascular disease.
- Individuals dealing with moderate to severe mental illnesses, including schizophrenia and bipolar disorder.
- People who are substance misusers.
- Individuals diagnosed with dementia.
- Those affected by neurobiological and related diseases, such as fibromyalgia and ME.
- People facing a diagnosis of cancer.
- Individuals with limited mobility.
- Those with haemoglobinopathies, such as sickle cell disease and thalassaemia.
- Individuals with severe learning disabilities.
- People diagnosed with autoimmune and immunodeficiency diseases, including lupus, MS, diabetes, and HIV.
- Individuals who have experienced a recent hospital admission resulting from a fall at home.
How to Apply
Applying for LA FLEX is a simple and straightforward process. Visit our website or reach out to our dedicated advisors to determine your eligibility. Once confirmed, we will guide you through the necessary steps to ensure your home receives the energy-efficient enhancements it deserves.
Energy Saving Trust
Applications for grant funding are now open, offering an avenue for financial support without the obligation of acquiring a loan. Furthermore, an additional provision, known as the rural uplift, has been instituted to offer supplementary assistance to residences situated in rural and island regions. These locales often encounter escalated costs when undertaking home improvement projects. This uplift is accessible to households within Remote Rural and Island areas, as well as off-gas Accessible Rural areas, delineated by the Urban Rural Classification. Our adept advisors possess the capacity to determine the eligibility of your property for this enhanced support. Additionally, our application form undertakes an evaluation based on your postcode to ascertain eligibility.
The grant funding allocated for the enhancement of energy efficiency encompasses up to 75% of the cumulative expenses associated with the improvements. This financial support extends up to a maximum grant amount of £7,500. For households meeting the criteria for the rural uplift, the grant ceiling is elevated to £9,000.
Regarding heat pumps, grant funding can reach up to £7,500. Households that qualify for the rural uplift are eligible for a heightened grant amount of £9,000. Any remaining funding required for the project can be pursued as an optional interest-free loan.
The inception of the Great British Insulation Scheme marks a novel governmental initiative aimed at facilitating home insulation, enhancing energy efficiency, and providing substantial savings on energy expenditures. Scheduled for a summer launch and set to operate until March 2026, this scheme, previously recognized as ECO+, boasts a financial allocation of £1 billion. With an outreach of approximately 300,000 households nationwide, the initiative is intended to defray the expenses associated with new home insulation installation. The resulting effect will equate to a notable annual reduction of £300 to £400 in energy bills for consumers.
By extending assistance to households with limited financial means, as well as expanding support to encompass a broader spectrum of residences situated in the least energy-efficient structures (those attaining an Energy Performance Certificate rating of D or below), and in lower Council Tax bands (A-D in England, A-E in Scotland and Wales), the scheme prioritizes inclusivity. This inclusivity translates to a heightened capacity for those grappling with financial constraints to avail themselves of aid in making their homes more energy-efficient. The paramount approach to curbing household energy consumption and mitigating heating expenses is through enhancing residential energy efficiency.
The operational mechanics of the scheme entail compelling energy suppliers to facilitate a reduction in heating costs for consumers. This facilitation occurs through the implementation of energy-efficient measures, including loft and cavity wall insulation. The financing of these measures may either be fully covered under the scheme or offered to participants at a contribution-based rate, contingent upon the specific measure and any property-related considerations.
Upon the scheme’s commencement, households will have the opportunity to ascertain their eligibility via the GOV.UK platform or by liaising with participating energy suppliers or local authorities. In instances of eligibility confirmation, the next steps involve arranging a home survey and coordinating the installation process.
Background Context
Since its inauguration in 2013, the Energy Company Obligation (ECO) has successfully implemented approximately 3.5 million energy efficiency measures in approximately 2.4 million properties. Notably, around 9% of households within Great Britain have benefited from ECO measures. The present iteration, referred to as ECO4, is projected to deliver energyefficient measures to an estimated 450,000 households characterized by low income and vulnerability. In parallel, the Great British Insulation Scheme is poised to extend its assistance to an additional 300,000 residences situated within the least energy-efficient housing stock across the nation.
Boiler Upgrade Scheme (BUS)
The Boiler Upgrade Scheme (BUS) represents a government initiative within the United Kingdom, aimed at fostering the wider adoption of low carbon heating systems, which encompass technologies such as heat pumps and biomass boilers.
This scheme is designed to encourage individuals in England and Wales to transition towards environmentally friendly heating alternatives. This transition is projected to occur over a 14-year span, affording homeowners the discretion to opt for this switch at present or defer it to a later time.
The qualifying criteria for participation in the Boiler Upgrade Scheme encompass the possession of a valid Energy Performance Certificate (EPC), which gauges the energy efficiency performance of a residence. Furthermore, the EPC should not include recommendations for cavity wall or loft insulation. Constituting a £450 million allocation, the Boiler Upgrade Scheme constitutes an integral component of the Government’s comprehensive strategy for the decarbonization of heat and buildings.
Application for the scheme follows an installer-led approach, with the majority of procedures being managed through Ofgem. The application process involves these steps:
- Initiate contact with a local installer, who will undertake the BUS application on your behalf.
- Subsequently, Ofgem will reach out to secure your consent and permission for the work.
- The installer will then engage with Ofgem on most matters pertaining to the scheme.
- Upon installation of your heating system, the installer will notify Ofgem.
- Finally, the installer will proceed to claim the grant funds from Ofgem upon completion of the project.
The value of the grant should be factored into the upfront quote provided by the installer. It’s incumbent upon installers to transmit the discount conferred by the BUS grant to you, the property owner.
The scope of the Boiler Upgrade Scheme encompasses three distinct low carbon heating systems:
- Air source heat pump: A subsidy of £5,000 applicable to the cost and installation.
- Biomass boiler: A reduction of £5,000 in the cost and installation expenses*.
- Ground source heat pump: A grant of £6,000 applicable to the cost and installation.
*It is pertinent to note that the grant is exclusively applicable to biomass boilers situated in rural areas, properties unconnected to the gas grid, and complying with emissions certificates that establish minimal levels of polluting emissions. Additionally, biomass boilers within selfbuild properties do not qualify under the scheme.
Your chosen installer possesses the expertise to assess the compatibility of heat pumps or biomass boilers with your property. They might recommend enhancing the energy efficiency of your property as a preliminary step.
To enhance energy efficiency, you can peruse our recommendations regarding loft insulation and cavity wall insulation, which can prove beneficial prior to the installation of a low carbon heating system.
This initiative extends its reach to homeowners and proprietors of small business properties exclusively in England and Wales. To submit an application, the following criteria must be met:
- Property ownership (pertaining to a residence or a small business property).
- Installation capacity of the property up to 45 kWth (encompassing the majority of residential properties).
- Possession of a valid Energy Performance Certificate (EPC). Notably, the EPC should not comprise any outstanding recommendations for loft or cavity wall insulation, unless there is an insulation exemption in place.
The scheme is operational from 2022 until 2028. Funding eligibility pertains to low carbon heating systems that are commissioned—installed and fully validated by the installer—on or after 1 April 2022.
However, the commencement of applications and disbursements is feasible no earlier than 23 May 2022.
Furthermore, the newly installed heating system should be competent in fulfilling the complete requirements for space heating and hot water within your property, while adhering to specific technical standards, including minimum efficiency criteria. Your chosen installer will be equipped to offer guidance on these technicalities.
The Boiler Upgrade Scheme operates in a manner where installers take the lead. Essentially, your chosen installer will facilitate the grant application on your behalf.
The grant value will be offset against the final cost that you are required to pay.
We strongly recommend procuring quotes from multiple installers to ensure that you receive optimal value for the funding.
This informational pamphlet is meticulously designed to serve as a reliable resource for installers and customers alike, outlining an overview of the scheme and providing essential links to pertinent websites.
You will need to identify a certified installer affiliated with the Microgeneration Certification Scheme (MCS) in your vicinity, who possesses the competence to execute the necessary work. The MCS quality assurance framework guarantees installer proficiency and the adherence of products to the requisite standards.
Upon assessing the installation, the installer will determine the eligibility for a grant under the scheme.
A quotation for the installation, inclusive of the Boiler Upgrade Scheme grant as a deduction from the total cost, will be mutually agreed upon. Subsequently, the installer will proceed to apply for the grant.
When contacted by the installer, you will be required to confirm your authorization for their representation in dealings with Ofgem.
Domestic and non domestic Renewable Heat Incentive (Domestic RHI)
The Renewable Heat Incentive (RHI) constituted a program by the UK Government aimed at stimulating the adoption of renewable heat technologies among households, communities, and businesses. This initiative involved the provision of financial incentives to encourage the utilization of renewable sources for heating purposes.
The Department for Business, Energy and Industrial Strategy (BEIS) of the UK Government played a central role in formulating key policy decisions, while the energy regulator, Ofgem EServe, was entrusted with the administration of the scheme.
For detailed policy documents, please refer to the UK Government’s official website.
Two iterations of the RHI were established: the domestic version and the non-domestic version. This page exclusively addresses the domestic RHI, whereas comprehensive information about the non-domestic RHI can be accessed on Ofgem’s platform.
Domestic Renewable Heat Incentive Scheme
The domestic RHI, which commenced on 9 April 2014, extended financial assistance to proprietors of renewable heating systems for a span of seven years. This scheme encompassed regions such as England, Wales, and Scotland.
For a deeper understanding, Ofgem has compiled a collection of case studies from the domestic RHI.
Eligibility Criteria
Outlined below are some of the primary eligibility criteria, with comprehensive stipulations and regulations available on Ofgem’s official website.
Which Technologies Qualified for RHI Payments?
The essential guide for applicants provided by Ofgem offers detailed insights into the technologies that were eligible for RHI payments. Here, we offer a summary of eligibility criteria, which also includes supplementary requisites for biomass systems (outlined below). Ofgem’s website contains further guidance on domestic RHI eligibility conditions. To be eligible for RHI payments, all renewable technologies needed to meet the following criteria:
- Be listed as a certified product under the Microgeneration Certification Scheme (MCS).
- Possess a valid MCS certificate.
The MCS website provides comprehensive information about products and installers certified under the Microgeneration Certification Scheme.
The technologies encompassed:
- Biomass boilers utilizing wood fuel.
- Biomass pellet stoves with integrated boilers providing space heating.
- Ground to water heat pumps.
- Air to water heat pumps.
- Solar thermal panels (limited to flat plate or evacuated tube) providing hot water for residential use.
- Water source heat pumps, which were potentially eligible and fell under the definition of ground source heat pumps.
- Specific cooker stoves and high temperature heat pumps could also meet eligibility requirements.
- Please refer to the ‘Additional Requirements for Biomass Systems’ below.
Non-Compliant Technologies
The domestic RHI did not extend support to air-to-air heat pumps, log stoves, pellet stoves lacking back boilers, and hybrid photovoltaic thermal hybrid solar collectors (PVT).
Additional Requisites for Biomass Systems
For a biomass system to qualify for RHI payments, it also needed to satisfy the following conditions:
- Possess a RHI Emissions Certificate. The RHI EC List enumerates the certified products.
- Utilize biomass fuel sourced from an approved sustainable wood fuel supplier**. The Biomass Suppliers List (BSL) established by the UK Government provides details of registered biomass wood fuel suppliers adhering to RHI standards.
**It is recommended to verify a supplier’s registration before entering into a long-term supply agreement. Not all fuels from BSL suppliers guarantee sustainability, as they may offer multiple fuel types. You should ascertain from your supplier, or potential supplier, which of their fuels are registered.
Who Could Apply for RHI?
Owners of eligible technology, who owned and/or occupied the premises where the installation was located, were entitled to apply for RHI support until the scheme concluded. This encompassed individuals such as self-builders, private landlords, and registered providers of Social Housing (subject to fulfilling eligibility criteria).
The scheme covered single domestic dwellings, but RHI support typically did not extend to new-build properties, except for self-build projects.
Additional Considerations
There are restrictions on the extent of space heating for which a dwelling could receive payments. The heat demand limits were set at 20,000 kWh for air source heat pumps (ASHPs), 25,000 kWh for biomass boilers and stoves, and 30,000 kWh for ground source heat pumps (GSHPs). No limit was imposed on solar water heating systems.
In the case of heat pumps, if the calculated demand surpassed the capped limit, customers received payment based on the unit tariff multiplied by the amount of renewable heat contributing to the capped demand.
Feed In Tariffs (FIT)
The Feed-in Tariffs (FIT) scheme was conceived by the government to encourage the adoption of renewable and low-carbon electricity generation. Launched on 1 April 2010, this initiative mandates participating licensed electricity suppliers to provide remuneration for electricity generated and exported by accredited installations.
The regulatory framework of the scheme is outlined in the Feed-in Tariffs Order 2012 (as amended) and the Standard Conditions of Electricity Supply License.
For Whom is the Scheme Intended?
Individuals who have set up an eligible installation utilizing any of the following technology types could seek accreditation:
- Solar photovoltaic (solar PV)
- Wind
- Micro combined heat and power (Micro CHP)
- Hydro
- Anaerobic digestion (AD)
Installations could have a capacity of up to 5 megawatts (MW) (or 2 kilowatts [kW] for Micro CHP).
From February 2016 onward, there has been a limit placed on the number of new installations that can be accredited within each ‘tariff period’ (typically every three months) for most technology types. For detailed insight into these deployment caps, please refer to our deployment caps reports page.
How Does the Scheme Operate?
The FIT scheme encompasses two categories of participants:
- FIT generators – the proprietors of accredited installations.
- FIT licensees – licensed electricity suppliers responsible for registering applications and disbursing FIT payments for the electricity produced by accredited installations.
FIT generators select their preferred FIT licensee, from whom they receive payments, at a minimum quarterly frequency, for the electricity generated and exported by their accredited installations. These payments are predicated on meter readings furnished by FIT generators to their designated FIT licensee.
The duration of support received by FIT generators ranges from 10 to 25 years, contingent on factors such as technology type, capacity, the commissioning date of the installation, and whether it had previously secured accreditation under the Renewables Obligation scheme.
Subsequently, the costs of operating the scheme are equitably distributed among all licensed electricity suppliers in Great Britain via the ‘levelisation’ process, proportionate to their respective shares of the electricity market.
Green Gas Support Scheme (GASS)
If you reside in England, Scotland, or Wales, you may have the opportunity to avail the benefits of the Smart Export Guarantee (SEG) tariff. The Smart Export Guarantee functions as a support mechanism aimed at ensuring that small-scale electricity generators are duly compensated for the renewable energy they contribute to the grid. This initiative has been operational since the commencement of January 2020. It is important to note that Smart Export Guarantee tariffs are not applicable to residents in Northern Ireland. Potential eligibility for this program extends to those who possess the following renewable energy generation technologies:
- Solar PV panels
- Wind turbines
- Hydroelectric systems
- Anaerobic digestion setups
- Micro Combined Heat and Power (micro-CHP) units
Following the discontinuation of the Feed-in Tariff (FIT) scheme to new applicants in March 2019, the government recognized the necessity to remunerate small-scale renewable energy generators for the electricity they export to the grid. Consequently, the Department for Business, Energy, and Industrial Strategy (BEIS) introduced the Smart Export Guarantee (SEG).
Under this initiative, all licensed energy companies with more than 150,000 customers are mandated to offer at least one SEG tariff. Smaller suppliers, although not bound by the SEG, can voluntarily provide a tariff if they choose to. Furthermore, all suppliers possess the option to provide alternative means of compensation for exported electricity, distinct from the SEG framework (refer to ‘Alternative finance arrangements’ below). It is essential to clarify that if you already receive compensation under the FIT for your installation, the introduction of the SEG does not impact this existing arrangement.
Eligibility Criteria for Renewable Energy Installations
The subsequent renewable energy installations qualify for the smart export guarantee:
- Solar PV systems, onshore wind, anaerobic digestion, and hydro installations up to a capacity of 5MW.
- Micro-CHP systems with an electrical capacity of up to 50kW.
For domestic installations, these size limits typically encompass the majority of systems.
The technology and installer utilized by homeowners must be certified under the Microgeneration Certification Scheme (MCS) or an equivalent. Energy suppliers may require you to provide an MCS certificate as evidence of your installation meeting these standards.
In addition, a registered smart meter capable of recording exported electricity is required, even if you choose not to enroll in a smart tariff.
Compensation for Exported Electricity
SEG does not prescribe specific or minimum tariffs; the sole requirement is that the tariff must always exceed zero. In practical terms, energy suppliers retain the discretion to determine the tariffs they offer to their customers. This could encompass the option to provide multiple tariffs or a single one.
SEG tariffs can assume either fixed or variable forms. A fixed SEG tariff entails a predetermined rate per kWh of exported electricity throughout the contract’s duration. Conversely, a variable SEG tariff adjusts the price based on market demand, with the proviso that prices never drop below zero.
Annually, Ofgem publishes a list of SEG licensees. For information regarding available SEG tariffs, you should directly contact the energy supplier.
Combining SEG with Other Financial Support
Combining SEG with other financial support is permissible, except in cases where you already receive payments through the FIT scheme. You cannot concurrently receive FIT export payments and SEG payments. However, you have the option to opt out of FIT export payments and instead receive SEG payments, while still receiving FIT generation payments.
SEG payments are not tied to other financial support mechanisms related to renewable energy installations. This implies that you could potentially amalgamate SEG payments with other financial assistance. In Scotland, for instance, you could combine SEG payments with the Home Energy Scotland Grant and Loan.
Note that receiving SEG from multiple suppliers is not feasible.
SEG and Energy Storage
Should your renewable installation include an energy storage system, you remain eligible to apply for the SEG. However, specific regulations may apply, contingent on your SEG contract. Your battery can store electricity from the grid (commonly known as brown electricity) for subsequent export.
While energy suppliers are not mandated to compensate for brown electricity exported to the grid, some suppliers might choose to do so.
Certain suppliers may solely extend SEG payments for green electricity generated by your low-carbon system. In such cases, the supplier may require you to demonstrate how you differentiate the green electricity generated from any imported brown electricity. Consult your installer for guidance on this matter.
Alternative Finance Arrangements
Besides SEG, energy suppliers offer analogous arrangements by offering predetermined tariffs to customers for exported electricity. These arrangements are customized to each household and might involve the metering of your generation and supply. They could also carry time-limited terms and other conditions, such as procuring supplied electricity from the same supplier. Careful consideration of all terms and conditions is crucial to making an informed decision.
For residents based in Scotland who have yet to install renewable electricity technologies such as solar PV, there is the possibility of applying for grant funding or an interest-free loan through the Home Energy Scotland Grant and Loan to offset initial costs. To qualify for funding, it’s imperative not to commence work on your system until receiving a written funding offer. Note that Solar PV and energy storage systems are eligible for funding only when bundled with a heat pump or high heat retention storage heaters. In cases where you have already implemented one or more of these enhancements, you can apply for the remaining improvements to complete the package.
Smart Export Guarantee (SEG)
The Warm Home Discount (WHD) initiative aids individuals with low income and those who are susceptible to cold-related ailments, or who reside predominantly in fuel poverty. This program was initiated in April 2011 and has been extended by the government until March 2026. Under this initiative, domestic energy suppliers with a customer base exceeding 1000 are mandated to provide an annual reduction on customer bills.
Certain smaller suppliers, though not obligated by the WHD, voluntarily engage in specific segments of the program, as outlined in the comprehensive scheme overview below.
A compilation of participating energy suppliers can be found within the Eligibility section.
The Department for Energy Security and Net Zero holds responsibility for WHD policy and legislative matters, overseeing both the Core Groups and the Broader Group. Ofgem’s role involves the administration of the Industry Initiatives and ensuring suppliers’ adherence to scheme requirements.
Scheme Overview
The program is categorized into distinct scheme years. Scheme year 12 concluded on 31st March 2023, while scheme year 13 was inaugurated on 1st April 2023 and will persist until 31st March 2024. Scheme years 14 and 15 will span a 12-month period from 1st April. Commencing from scheme year 12 (2022/23), two distinct Warm Home Discount (WHD) schemes have been established: one for England and Wales, and another for Scotland. For information pertaining to Northern Ireland options, visit the Affordable Warmth scheme web page.
The Warm Home Discount (WHD) initiative in England and Wales encompasses three key elements: Core Group 1, designated for individuals receiving the Guarantee Credit component of Pension Credit; Core Group 2, catering to low-income customers with substantial energy expenses. Both Core Group 1 and 2 offer an annual £150 discount on energy bills. The third element comprises Industry Initiatives, offering comprehensive assistance to customers either ensnared by or vulnerable to fuel poverty, through various measures including energy advice and debt write-off.
In Scotland, the initiative’s three components are referred to as the Core Group, Broader Group, and Industry Initiatives. Detailed eligibility criteria for the program can be accessed within the Eligibility section. For scheme year 12 (2022/23), energy suppliers boasting over 50,000 domestic customers were mandated to partake in all three components of the scheme. These entities are referred to as compulsory suppliers.
From scheme year 13 (2023/24) onwards, energy suppliers overseeing more than 1,000 domestic customers are mandated to engage in all facets of the program. This extension seeks to provide a greater number of eligible customers with beneficial access. Suppliers opting to volunteer their participation are involved solely in Core Group 1 and 2 in England and Wales, and exclusively in the Core Group in Scotland.
Home Upgrade Grant (HUG) Local Authority Funding
Determine Your Eligibility for Support
Applicants who qualify for assistance must meet the following criteria:
- Possess a low income status
- Reside in areas beyond the gas grid
- Possess an Energy Performance Certificate (EPC) rating ranging from D to G
- Inhabit regions falling under the purview of the local authority areas enumerated (use the “find your council tool” for reference)
Should you fulfill these stipulated prerequisites, you are encouraged to initiate contact with your respective local authority to initiate the subsequent steps.
Certain locales are recipients of funding as part of a collaborative cluster of local authorities, and these instances are detailed below the principal organizational entity.
| Location | Allocation | Consortium Members |
|---|---|---|
| Basildon Council | £1,573,200 | - |
| Blackpool Council | £41,400,000.00 | Blackburn with Darwen, Burnley, Chorley, Hyndburn, Lancaster, Pendle, Preston, Ribble Valley, Rossendale, South Ribble, West Lancashire, Wyre |
| Bristol City Council | £11,393,650 | Bath and North East Somerset, North Somerset |
| Broadland District Council | £3,933,000 | South Norfolk, North Norfolk, Breckland, King’s Lynn and West Norfolk, Norwich |
| Calderdale Council | £4,140,000 | - |
| Cambridge City Council | £11,509,200 | Cambridge, Cambridgeshire County Council, East Cambridgeshire, Fenland, Huntingdonshire, South Cambridgeshire |
| Cambridgeshire and Peterborough Combined Authority | £82,313,888 | Bedford, Milton Keynes, Bracknell Forest, Reading, Slough, West Berkshire, Windsor and Maidenhead, Wokingham, Buckinghamshire, Basildon, Braintree, Brentwood, Castle Point, Chelmsford, Colchester, Epping Forest, Harlow, Maldon, Rochford, Southend-on-Sea, Tendring, Thurrock, Uttlesford, Hart, Broxbourne, Dacorum, East Hertfordshire, Hertsmere, North Hertfordshire, St Albans, Stevenage, Welwyn Hatfield, Ashford, Canterbury, Folkestone and Hythe, Gravesham, Maidstone, Medway, Sevenoaks, Swale, Thanet, Tonbridge and Malling, Tunbridge Wells, Havering, Sutton, North Northhamptonshire, West Northamptonshire, Oxford |
| Cheshire East Council | £6,210,000 | Cheshire West and Chester |
| City of York Council | £1,242,000.000 | - |
| Cornwall Council and Council of the Isles of Scilly | £20,700,000 | - |
| Darlington Borough Council | £6,210,000 | Stockton-on-Tees, Redcar and Cleveland, Hartlepool |
| Dartford Borough Council | £2,070,000 | Dover |
| Devon County Council | £13,339,272 | East Devon, Exeter, Mid Devon, North Devon, Teignbridge, Torridge, Torbay |
| Dorset Council | £4,343,000 | Bournemouth, Christchurch and Poole |
| Durham County Council | £5,185,000 | - |
| Eden District Council | £12,420,000 | Allerdale, Barrow-in-Furness, Copeland, Carlisle, South Lakeland |
| Greater London Authority | £12,006,000 | Barking and Dagenham, Barnet, Bexley, Brent, Bromley, Camden, City of London, Croydon, Ealing, Enfield, Greenwich, Hackney, Hammersmith and Fulham, Haringey, Harrow, Westminster, Hillingdon, Hounslow, Islington, Kensington and Chelsea, Kingston upon Thames, Lambeth, Lewisham, Merton, Newham, Redbridge, Richmond upon Thames, Southwark, Wandsworth, Tower Hamlets, Waltham Forest |
| Great Yarmouth Borough Council | £6,561,900 | - |
| Leeds City Council | £ 15,525,000 | - |
| Leicester City Council | £3,291,300 | - |
| Lewes District Council | £6,230,700 | Eastbourne, Hastings, Rother |
| Liverpool City Region Combined Authority | £10,350,000 | Liverpool City Council, Sefton, Knowsley, Halton, St. Helens, Wirral |
| Manchester City Council | £10,400,000 | - |
| Midlands Net Zero Hub | £138,536,810 | Oadby and Wigston, Redditch, Chesterfield, Mansfield, Lincoln , Erewash, High Peak, Gedling, Nuneaton and Bedworth, Bromsgrove, Rushcliffe, Worcester, North East Lincolnshire, North Warwickshire, South Derbyshire, Telford and Wrekin, Amber Valley, Boston, Solihull, Walsall, Derbyshire Dales, Derby, North Lincolnshire, Wychavon Wolverhampton, Bassetlaw, Warwick, West Lindsey, Malvern Hills, Nottingham City Council, Coventry, South Holland, North Kesteven, South Kesteven, Stratford-on-Avon, East Lindsey, County of Herefordshire, Shropshire, Staffordshire Moorlands, East Staffordshire, Stafford, Lichfield, Newcastle-under-Lyme, Tamworth, Cannock Chase, South Staffordshire, Wyre Forest, Birmingham, Sandwell, Dudley, Rugby, Ashfield, Broxtowe, Newark &Sherwood, Blaby |
OZEV (Office for Zero Emission Vehicles)
The Office for Zero Emission Vehicles (OZEV) is a governmental entity dedicated to facilitating the United Kingdom’s transition toward an electric infrastructure. This office comprises personnel and resources derived from the Department for Transport and the Department for Business, Energy and Industrial Strategy.
This office bears the responsibility of furnishing ministerial advice pertinent to the shift towards low emission vehicles. Its overarching objective is to enhance accessibility to charging facilities by supporting the widespread deployment of charging infrastructure. This approach is designed to render the transition to electric vehicles more convenient and practicable for both consumers and businesses.
What specific initiatives do they offer that could be advantageous to your enterprise and fleet?
The Workplace Charging Scheme
OZEV administers the Workplace Charging Scheme (WCS), an initiative aimed at providing assistance to businesses, charitable organizations, and public sector entities seeking to establish electric vehicle charging points. Through the WCS, businesses can avail up to £350 per charging socket, with a cap of 40 charging sockets. Your business is eligible to apply for this scheme if it satisfies the following criteria:
- It is registered as a company.
- It either qualifies as a public authority or has received less than €200,000 in public support within the preceding 3 years.
- It can either assert a genuine requirement for charging equipment or demonstrate an intention to promote the adoption of electric vehicles among its staff or fleet.
- It is situated within the United Kingdom.
- It possesses designated off-street parking.
- It either owns the property where the charging points are to be installed or can provide verifiable consent from the landlord.
As of July 2021, this scheme has facilitated over 13,000 installations of charging points.
Furthermore, individuals who personally own electric vehicles can apply for the Electric Vehicle Homecharge Scheme, which extends £350 in financial support to aid in the installation of a home charging point.
Social Housing Decarbonization Fund
What is the Social Housing Decarbonisation Fund?
The Government has introduced a £3.8 billion Social Housing Decarbonisation Fund, spanning a duration of 10 years, with the primary aim of enhancing the energy efficiency of social rented homes. In the year 2020, a fund amounting to £62 million was announced, followed by an additional £160 million allocated for the inaugural phase of the SHDF in the financial year 2021/22, culminating in January 2023.
What are the available measures?
The program operates based on a fabric-first principle, with the objective of optimizing the dwelling’s readiness for low carbon heating, whether in the present or future. Registered providers are mandated to enhance their housing stock through a fabric-first approach, ensuring that properties attain at least a minimum EPC C rating. Moreover, the measures are expected to elevate properties to a space heating demand level of 90 kWh/m²/year.
The scheme accommodates any measure deemed eligible according to the Standard Assessment Procedure (SAP), except for fossil fuel-based heating systems.
Installation of Low Carbon Heating is permissible when executed in accordance with a fabricfirst strategy, and all newly integrated heating systems must independently yield reduced bills in comparison to the existing setup.
- Cavity wall insulation
- Solid wall insulation (internal or external)
- Loft insulation
- Window and door replacement
- Heating systems and controls
- Water efficiency devices and systems
Renewable energy systems like solar panels and heat pumps.
What must social housing providers demonstrate in their applications?
Applicants are required to showcase the ability to:
- Assemble a robust delivery team, inclusive of a Retrofit Coordinator
- Identify suitable dwelling clusters for retrofitting and secure occupants’ consent prior to commencing work
- Source skills and materials from the retrofit supply chain in a timely manner
- Establish baseline dwelling performance for a comprehensive understanding of retrofit needs
- Design and implement retrofits aimed at improving stock energy performance and achieving targets
- Monitor real-world performance
- Oversee retrofit delivery to avoid adverse consequences such as overheating or damprelated issues
- Harmonize all elements for successful project completion by January 2023.
Applications will be evaluated based on three distinct scoring sections:
- Strategic Fit (45%) – To assess alignment with SHDF Wave 1 Scheme objectives, desired outcomes, and eligibility criteria.
- Delivery Assurance (35%) – To ascertain project feasibility and credibility.
- Value for Money (20%) – To ensure optimal value for money for both SHDF and BEIS.
Which projects are suitable?
The lead role for a project must be assumed by a Local Authority in England. Private Registered Providers of social housing can collaborate within a consortium alongside an LA in England. The Lead LA need not contribute their own housing stock as part of a consortia bid; the proposal can exclusively encompass stock from other social housing providers. All forms of social housing, encompassing both private and LA providers, are eligible, irrespective of archetype and whether on- or off-gas grid. No income-based eligibility criteria are applicable to social housing tenants.
What is the funding allocation per property?
The scheme entails cost caps for home upgrades, dependent on the initial performance of the dwelling – an approach that facilitates treatment for the poorest-performing homes.
Higher caps are assigned to homes with a lower starting EPC Band.
| Starting EPC | Max Funding | Minimum Landlord Contribution (if co-funded) | Total Costs |
|---|---|---|---|
| D | £10,000 | £5,000 | £15,000 |
| E | £12,000 | £6,000 | £18,000 |
| F | £16,000 | £8,000 | £24,000 |
| G | £16,000 | £8,000 | £24,000 |
Administrative and ancillary costs, making up less than 15% of total expenses, are supplementary to home upgrade costs. Funding requested per property can be flexibly allocated across the application as deemed suitable. Providers are mandated to contribute a minimum of one-third of the total eligible project costs.
Can projects encompass mixed tenures?
While funding for other tenure types is accessible through SHDF, inclusion is contingent upon the adverse impact on social homes in its absence. Additionally, the bid must comprise a minimum of 70% social housing.
Furthermore, funding is confined to infill measures – those required by all residential units for social homes to meet the fund’s performance objectives, likely encompassing insulation and related ventilation.
What are the standards for installers?
All installers must be registered with TrustMark or an equivalent entity, adhering to TrustMark’s stipulated requirements. Concurrently, all projects must adhere to the latest specification and guidance of PAS 2035:2019 (PAS 2035).
For eligible measures, installers must possess appropriate certifications, and installers of low carbon heating systems must be registered with TrustMark or an equivalent authority, alongside certification compliant with relevant MCS standards.
EES ABS SCOTLAND
he Energy Efficient Scotland: Area Based Schemes 2020 initiative by the Scottish Government serves as a successor to the preceding Home Energy Efficiency Programme (HEEPs) Programme. Over a span of more than 7 years, the program has diligently provided energy efficiency enhancements to properties under owner occupancy and those owned by private landlords. Additionally, collaborative efforts with Registered Social Landlords are undertaken by the council to support proprietors within mixed tenure blocks, where energy efficiency measures are intended for implementation in blocks of residential units managed by housing associations.
The program’s execution is underpinned by funding from the Scottish Government, forged in partnership with an array of advisory entities and energy companies. This collaborative endeavor is supported by Glasgow City Council and other local governing bodies. To bolster the development and implementation of energy efficiency endeavors, the Scottish Government has allocated financial support to local authorities. These endeavors, predominantly focused on solid wall insulation, are directed towards regions with substantial fuel poverty concerns. This financial allocation is amalgamated with contributions from property owners and funding secured from Registered Social Landlords who concurrently seek to enhance the insulation of their properties.
The design and execution of the area-based schemes are masterminded by councils in conjunction with local partners specializing in delivery. These initiatives are strategically aimed at fuel-poor regions, with the objective of administering energy efficiency enhancements to a significant number of homes in Scotland. Concurrently, these endeavors contribute to emission reduction and the alleviation of fuel poverty. Since 2013, the Scottish Government has invested nearly £433 million through the Area Based Schemes (ABS) program, extending support to over 100,000 households and facilitating numerous local communities in their efforts to address fuel poverty. Consistent with the commitments outlined in the Programme for Government, the Scottish Government has maintained an annual investment of £64 million in local ABS projects for the fiscal year 2022/23. This funding level remains consistent with the allocation for 21/22 and reflects an increase of £9 million from the £55 million allocated in 2020/21
Community and Renewable Energy Scheme
he Community and Renewable Energy Scheme (CARES) was established with the purpose of promoting local and community ownership of renewable energy projects throughout Scotland. Its core objective is to optimize the advantages offered by renewable energy systems, irrespective of whether they are commercially owned or owned by the community. CARES operates with the intention of expediting progress toward our target of achieving two gigawatts of renewable energy under local or community ownership by the year 2030. It also aligns with the execution of both our Energy strategy and our Heat in buildings strategy. This alignment is facilitated through the provision of loan finance, grant funding, and specialized advisory services.
The administration of CARES is entrusted to Local Energy Scotland, and the scheme operates through a network of development officers stationed across Scotland. These officers are equipped to offer comprehensive, impartial, and expert guidance and assistance to community groups, charitable organizations, and other eligible entities interested in exploring opportunities within the realm of renewable energy. Since its inception in 2010, CARES has disbursed funding exceeding £58 million to applicants. The scheme has bolstered over 600 projects and extended advisory support to over 900 organizations. CARES encompasses a broad spectrum of project possibilities, encompassing the installation of renewable technologies within community structures, promoting community benefits, and fostering shared ownership. Through a comprehensive package of support, CARES endeavors to streamline the process for applicants, simplifying the implementation of their projects.
Warm Homes Fund (WHF)
The Warm Home Fund (WHF) constitutes a £150 million support initiative commissioned by Affordable Warmth Solutions (AWS), an entity established through collaboration between National Grid and a community interest company. This program operates across regions encompassing England, Wales, and Scotland. Its primary objective is to extend assistance to homeowners grappling with fuel poverty, particularly those not reliant on mains gas as their primary heating source. Additionally, the initiative is strategically designed to offer support to Local Authorities, registered Social Landlords, and affiliated organizations engaged in collaborative efforts aimed at addressing challenges prevalent in households afflicted by fuel poverty.
The fund’s structure is delineated into three overarching categories:
- Urban residences and communities – This classification envisions the potential implementation of novel central heating systems that elevate the quality of heating and hot water provisions in properties. It may also encompass the integration of alternative heating solutions.
- Rural residences and communities – Within this grouping, individuals shall primarily be provided with ‘non-gas solutions,’ which encompass technologies like air source heat pumps, oil heating, and LPG.
- Distinct energy-efficient/health-related solutions – This category could encompass national or regional initiatives that assemble pertinent organizations and charitable entities to furnish residents with guidance and health-oriented programs pertinent to fuel-related conditions.
What Constitutes the Qualifying Criteria?
For individuals dwelling in privately owned or rented properties, eligibility for gas connection vouchers can be attained through two distinct avenues:
- Individuals residing in privately owned or rented properties who receive specific qualifying benefits.
- Social tenants or individuals living in privately owned or rented properties expending a substantial portion of their disposable income on household fuel costs.
Boiler upgrade scheme
The Boiler Upgrade Scheme (BUS), previously identified as the Clean Heat Grant, was initiated in the spring of 2022. Its primary purpose is to furnish property owners with grants intended for the installation of heat pumps and biomass boilers, effectively replacing fossil fuel-based systems. Under the scheme’s provisions, fresh grants amounting to £5,000 have been made accessible. These grants are strategically aimed at motivating homeowners to embrace the adoption of more efficient, low carbon heating systems, thereby supplanting their existing gas or oil-fired boilers. The core objective underlying the grants within the Boiler Upgrade Scheme revolves around making heat pumps economically competitive with gas boilers, both in terms of acquisition and operational costs.
The qualifying criteria for participation in the Boiler Upgrade Scheme encompass the possession of a valid Energy Performance Certificate (EPC), which gauges the energy efficiency performance of a residence. Furthermore, the EPC should not include recommendations for cavity wall or loft insulation. Constituting a £450 million allocation, the Boiler Upgrade Scheme constitutes an integral component of the Government’s comprehensive strategy for the decarbonization of heat and buildings.
However, it is noteworthy that the transition away from fossil fuel systems will not be enforced as a mandate.
This transition is projected to occur over a 14-year span, affording homeowners the discretion to opt for this switch at present or defer it to a later time.
Application for the scheme follows an installer-led approach, with the majority of procedures being managed through Ofgem. The application process involves these steps:
- Initiate contact with a local installer, who will undertake the BUS application on your behalf.
- Subsequently, Ofgem will reach out to secure your consent and permission for the work.
- The installer will then engage with Ofgem on most matters pertaining to the scheme.
- Upon installation of your heating system, the installer will notify Ofgem.
- Finally, the installer will proceed to claim the grant funds from Ofgem upon completion of the project.
The value of the grant should be factored into the upfront quote provided by the installer. It’s incumbent upon installers to transmit the discount conferred by the BUS grant to you, the property owner.
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UK Government grants are available to help reduce your heating bills.