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Improving Your Home: Funding Options for Energy Improvements


There are a number of current funding options available to homeowners to make their homes more energy efficient, thereby lowering their energy bills and reducing carbon emissions.

A range of different schemes are currently available to homeowners. It is important for homeowners to review all the options and determine which will work best for their property, home improvement goals and financial situation. If not, they could miss out on the chance to improve their homes’ energy efficiency at a discount rate.

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What schemes are available?

The majority of the schemes available are targeted at homeowners or tenants in fuel poverty and non-energy efficient housing. Alongside this, each scheme has a specific set of eligibility requirements and there is no guarantee that you will be awarded funds if you apply.

The following list of schemes is not definite. It is worth checking with your local authority or housing provider to see if there are any further local or regional opportunities that you can take advantage of.

The Social Housing Decarbonisation Fund (SHDF):

The Social Housing Decarbonisation Fund (SHDF) is a fund that provides support to social housing landlords across England with an EPC rating of D or below. Social landlords can apply for the funding and, if awarded, can use the funds to target improvements in their housing stock and make them more energy efficient.

There have been a number of payments made from the scheme to date. The most recent Wave 2.2 successful applicants will be awarded funds shortly and must then spend the amount before March 2026.

As a tenant, you may not be in the position to decide if your home will benefit from this funding. However, it is worth checking to see if your housing provider has been awarded any funding and how and where it is being spent.

Click the link for more information: https://www.gov.uk/government/publications/social-housing-decarbonisation-fund-wave-2 

Energy Company Obligation 4 (ECO4)

Probably the highest profile scheme at the moment is ECO4. ECO4 is essentially where energy companies are obligated to use profits to fund improved energy efficiency of homes where the occupants are either in fuel poverty or are already receiving some form of financial assistance. There is £4 billion available to be spent over four years, ending in March 2026.

Eligible homes, once assessed, can benefit from a number of improvements including insulation, glazing, heating and hot water. Earlier versions of ECO have looked at one or two improvements per property. However, ECO4 is focused on more improvements per property. This can be beneficial but may mean that the funds provided will not go as far.

Click the link for more information: https://www.gov.uk/energy-company-obligation 

Home Upgrade Grant (HUG)

The Home Upgrade Grant is available to homeowners in England who have poor performing homes and are off the mains gas grid. To be eligible, you must own and live in the relevant property, and it will need to have an EPC rating between D and G. It is also likely that your household income will need to be less than £31,000 per annum, although this can vary in certain postcode areas.

The money, awarded as a grant from local authorities, aims to provide energy efficiency upgrades and low carbon heating to the worst performing households. Other improvement options include insulation for walls, lofts and floors as well as heating.

Click the link for more information: https://www.gov.uk/apply-home-upgrade-grant 

Great British Insulation Scheme (GBIS)

The next scheme to consider is relatively new and comes with the catchy title of ‘The Great British Insulation Scheme’ (GBIS).

The aim of this scheme is to offer single measure insulation improvements and is targeted at properties with an existing EPC rating of D to G and a Council Tax banding of A to D in England or A to E in Scotland or Wales.

You can be either a homeowner, landlord or tenant. However, if you are a tenant you will need to check with your landlord first as their permission will be needed before any work can take place.

There is a fund of £1 billion to be spent over a 3-year period lasting until March 2026, with the aim of providing additional insulation to 300,000 homes. Each property will only be eligible for one measure each and, depending on what that measure is, the homeowner may have to contribute towards some of the cost.

Click the link for more information: https://www.gov.uk/apply-great-british-insulation-scheme

Boiler Upgrade Scheme (BUS)

Finally, is a scheme that is focused on encouraging homeowners to switch from a fossil fuel heating systems, such as gas or oil, and replacing it with a heat pump. This scheme offers a grant of up to £7,500 towards the cost of and the installation of a heat pump. This amount was recently increased from £5,000, which has resulted in a 57% rise in applications. As a result of this, a further £1.5 billion has been allocated to the BUS scheme, ensuring that even more homes can benefit.

To be eligible, your property must have a valid EPC with no outstanding recommendations for loft or cavity wall insulation.

Click the link for more information: https://www.gov.uk/apply-boiler-upgrade-scheme

Final Thoughts:

This list is not exhaustive. There will be other local schemes that you may be able to access. In addition, the schemes noted above may be limited to certain geographical areas and come with various eligibility requirements for applicants.

We hope that this summary has provided you with a good starting point for considering the current schemes on offer. However, before deciding on anything, it is important to research the schemes in more depth and consider your options. We hope that you can then take advantage of the range of government schemes on offer and start your journey to a warmer and more comfortable home.

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Information for Homeowners

For more information on the energy assessment industry, including Energy Performance Certificates (EPCs), Retrofitting Your Home, and the current government funding options, please visit our Information for Homeowners webpage.

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