Green Energy Grants: A Guide to the Options Available For Your Home

Are you looking to make your home more energy-efficient but worried about the costs? You’re not alone. Many homeowners want to embrace green energy solutions but feel overwhelmed by the initial investment. 

The good news is that numerous green energy grants are available to help you make these eco-friendly upgrades without breaking the bank.

In this guide, we’ll walk you through the various options available for your home, including government schemes and local initiatives. Whether you’re interested in installing solar panels, improving insulation, or upgrading to energy-efficient appliances, we’ve got the information you need. 

Let’s explore how you can use these grants to create a more sustainable and cost-effective home in the UK.

The ECO4 Grant 

The ECO4 Grant funds fuel-poor households or those on benefits to install energy-efficient alternatives. Some households can take advantage of the ECO4 Flex initiative if they receive a referral from an energy supplier or local authority. 

Available until March 2026, the grant can give people between £7,000 and £20,000 to implement energy-saving measures, including: 

• Insulating walls, lofts and flooring 
• Switching to heat pumps, biomass boilers and other energy-efficient sources 
• Solar panel installation 
• Repairing boilers 

Eligibility criteria 

The ECO4 scheme is available for people on a low income and households with poor energy efficiency. If you receive benefits such as Jobseekers Allowance, Universal Credit, Pension Credit, and Housing Benefit, you will likely be accepted for the ECO4 grant. 

Home Upgrade Grants 

The Home Upgrade Grant is available for low-income homes or those without gas central heating. Unlike the ECO4 Grant, the HUG is awarded and controlled by local authorities, so it might not be available in your area. 

Private tenants can also take advantage of the HUG, but landlords must contribute a third of the costs. 

The grant covers: 

• Solar panel installation
• Property insulation 
• Air source heat pumps 

Eligibility criteria 

In addition to being low-income and lacking central heating, your home must have an EPC rating of D to E for renters or D to G for private homeowners. Individuals receiving means-tested benefits might also be eligible depending on their local authority. 

Solar panel schemes

 

Solar panels are one of the most popular ways to power a home. They use sunlight to generate power, reducing your reliance on fossil fuels and dramatically cutting your energy bills. 

According to the FMB, the average UK household can save over £1100 a year on their energy bills, making solar panels a wise investment for the future. 

One drawback of solar panel installation is the outright costs, which can exceed £9,000. However, accessing the following grants can save you a lot of money in the long run: 

0% VAT 

Previously, homes with solar panels had to pay VAT on the panels and batteries, but this changed in 2024. These savings mean households can save money during the initial installation, but their break-even point will decrease by up to five years. 

The 0% VAT period will last until 2027. After that, the rates will go up to 5%, so if you’re interested in solar panel installation, there’s no time like the present to explore your options. 

Smart Export Guarantee 

Since 2020, homes with solar panels have saved hundreds each year through the Smart Export Guarantee (SEG). Properties with low-carbon electricity measures can export excess energy to the grid and receive payments. 

Licensed energy suppliers with at least 150,000 customers are legally obligated to provide the scheme, with the average payments being around 5.5p per kWh. 

Major suppliers, such as EON, British Gas, OVO, and Scottish Energy, offer customers the SEG. 

The Boiler Upgrade Scheme

Homeowners who want to reduce their energy bills and switch their boilers for sustainable alternatives can now receive up to £7,500 from the government. 

Biomass boilers and heat pumps are eco-friendly alternatives to traditional boilers, but their previous expense meant many households avoided them. The scheme allows people to benefit from cleaner energy while reducing utility bills. 

Eligibility criteria 

To be eligible for the Boiler Upgrade Scheme, you should: 

• Be the property owner – including private residential homes, rental properties and commercial buildings. 
• Use the money to replace a heating system that relies on fossil fuels. 
• Have a valid EPC certificate. 

The majority of new builds and social homes aren’t able to access funding. You can’t apply again if you’ve already received government funding for biomass boilers and heat pumps. 

Choosing the right solution for your needs 

As you can see, households across the UK have access to plenty of grants that will either reduce or eliminate the costs associated with solar panel and heat pump installation. 

Knowing which is best for your needs can be challenging, so here’s what you should consider: 

• Eligibility: Most grants have strict criteria regarding your property type, income, current heating system and whether you’re on benefits. 
• Grant Amount: Low-income households can access grants that give them free installation, while others can opt for the HUG and receive a discount. 
• Long-Term Savings: If you want to benefit from ongoing savings, opting for the Smart Export Guarantee is wise. 
• Deadlines: Check with your local authority or on the GOV.UK website to see the deadlines for each grant. 

Comparison Table 

Grant/Scheme	Goal	Eligibility
ECO4	Reducing energy bills by insulating properties and installing low-carbon heating.	Low income households.
Home Upgrade Grants	Enhancing energy efficiency through installing low-carbon systems.	Low-income households and properties with no gas supply.
0% VAT	Reducing the costs of solar panels and batteries.	For homes with solar panels.
Smart Export Guarantee	Households receive money for energy they export back to the grid.	Available for households with low-scale carbon electricity measures.
Boiler Upgrade Scheme	Receive up to £7,500 for installing biomass boilers or heat pumps.	For homes that currently rely on fossil fuels.

If you want to benefit from greener energy, checkout out our heat pump and solar installation services, designed to help you lower your carbon footprint and save on energy expenses.