UK Government Energy Grants 2026: The Complete Guide to Funding Your Home Upgrades

Key Takeaways#

• The UK government offers several grants and schemes to help homeowners fund energy efficiency improvements, from heat pumps to insulation and solar panels.
• The Boiler Upgrade Scheme provides up to £7,500 towards heat pump installation costs.
• ECO4 and the Great British Insulation Scheme target low-income households and energy-inefficient homes with fully funded upgrades.
• VAT on most energy-saving materials and installations remains at 0% until April 2027.
• Eligibility varies by scheme, but many homeowners qualify for at least one form of support.

Introduction#

Making your home more energy efficient is one of the best investments you can make, but the upfront costs of heat pumps, insulation, and solar panels can be daunting. The good news is that the UK government funds several grant schemes designed to reduce or eliminate these costs for eligible homeowners.

This guide brings together every major energy grant available in 2026, explaining what each scheme covers, who qualifies, and how to apply. Whether you are looking to replace an old boiler with a heat pump, insulate your loft, or install solar panels, there is likely a scheme that can help.

For more detailed guidance on specific upgrade types, see our pillar guides on insulation and heat pumps.

Quick Eligibility Summary#

Use this table to identify which schemes you may qualify for, then read the detailed sections below.

Boiler Upgrade Scheme (BUS)#

The Boiler Upgrade Scheme is the UK government's flagship programme for encouraging homeowners to switch from fossil fuel heating to low-carbon alternatives. Administered by Ofgem, the scheme provides upfront capital grants that are applied directly to your installation quote, so you never need to pay the full cost and claim back later.

Grant Amounts#

As of 2025/26, the BUS provides the following grants:

• Air source heat pump: up to £7,500
• Ground source heat pump: up to £7,500
• Biomass boiler: up to £5,000
• Air-to-air heat pump: up to £2,500
• Heat battery: up to £2,500

The scheme budget for 2025/26 is £295 million, a significant increase from previous years reflecting the government's commitment to decarbonising home heating.

Eligibility#

To qualify for the BUS, you must:

• Own the property (or be a landlord) in England or Wales
• Have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation (or have those measures already installed)
• Be replacing a fossil fuel heating system (gas, oil, LPG, or electric)
• Use an MCS-certified installer

Social housing properties are not eligible. The property must not have already received a grant under the scheme.

How to Apply#

You do not apply directly. Instead, your MCS-certified installer applies on your behalf through the Ofgem portal. The grant is deducted from your quote before you pay.

For a detailed walkthrough of the application process, read our full guide: How to Secure Heat Pump Installation Grants 2026 in the UK.

ECO4 Scheme#

The Energy Company Obligation (ECO4) is a government mandate requiring large energy suppliers to fund energy efficiency improvements in low-income and vulnerable households. Unlike the BUS, ECO4 is not a traditional grant you apply for directly. Instead, energy companies select and fund eligible projects through approved installers.

What ECO4 Covers#

ECO4 can fund a wide range of measures, including:

• Loft, cavity wall, and solid wall insulation
• Draught-proofing
• Heating system upgrades and repairs
• First-time central heating installations
• Smart heating controls

The aim is to raise the EPC rating of treated homes to at least band C where practicable.

Eligibility#

ECO4 primarily targets:

• Households on means-tested benefits such as Universal Credit, Pension Credit, Child Tax Credit, or Income Support
• Properties rated EPC D to G (the least energy-efficient homes)
• ECO4 Flex referrals: up to 50% of the obligation can be met through local authority referrals targeting low-income households not on benefits but in fuel poverty

Regional criteria may also apply, with areas of higher fuel poverty sometimes receiving priority.

Important Deadline#

ECO4 is scheduled to end on 31 March 2026. If you think you may be eligible, act now to ensure your application is processed before the scheme closes.

For step-by-step application guidance, see: How to Apply for ECO4 Grants in the UK 2026.

Great British Insulation Scheme (GBIS)#

The Great British Insulation Scheme (formerly known as ECO+) is a £1 billion programme focused specifically on improving insulation in energy-inefficient homes across the UK. Like ECO4, it is delivered through obligated energy suppliers.

What GBIS Covers#

The scheme focuses on insulation measures, including:

• Cavity wall insulation
• Loft insulation (including top-ups)
• Flat roof insulation
• Underfloor insulation
• Solid wall insulation (internal and external)
• Room-in-roof insulation

Eligibility#

GBIS has two eligibility groups:

1. Low-income group: Households receiving means-tested benefits or living in vulnerable circumstances
2. General eligibility group: Homeowners or tenants living in homes with an EPC rating of D to G, within Council Tax bands A-D in England or A-E in Scotland and Wales

In some cases, you may be asked to make a contribution towards the cost, particularly if you fall into the general eligibility group. However, for those in the low-income group, measures are often fully funded.

Important Deadline#

Like ECO4, the Great British Insulation Scheme is scheduled to end on 31 March 2026. The GOV.UK referral service has already closed, but you can still contact an obligated energy supplier or an approved installer directly to enquire about accessing the scheme.

For a full explanation of how the scheme works, read: Understanding the Great British Insulation Scheme: How It Works.

Solar Panel Grants and Support#

There is no single dedicated solar panel grant from the UK government in 2026, but several programmes and financial incentives make solar more affordable than ever.

Warm Homes Plan#

Low-income households can receive fully funded solar panel and battery storage installations through the government's Warm Homes Plan. The average cost of a solar PV and battery package is between £9,000 and £12,000, which can be covered in full for eligible households.

Smart Export Guarantee (SEG)#

Once you have solar panels installed, the Smart Export Guarantee ensures you are paid for any surplus electricity you export back to the National Grid. Administered by Ofgem, the SEG requires all licensed electricity suppliers with 150,000 or more customers to offer an export tariff. You will need a smart meter to participate.

VAT Relief#

The installation of solar panels is currently VAT-exempt (0% rate) until April 2027, saving you up to 20% compared to the standard rate. This applies to both the materials and installation labour.

Local Authority Schemes#

Many local councils offer additional solar grants or interest-free loans. Check with your local authority for area-specific programmes.

For a complete walkthrough of solar funding options, read: Applying for Solar Panel Grants 2026 in the UK.

Insulation Grants#

Insulation is one of the most cost-effective energy efficiency measures. According to the Energy Saving Trust, properly insulating a home can save between £150 and £590 per year on energy bills, depending on the type of insulation and the starting condition of the property.

Available Funding Routes#

Several schemes fund insulation work:

• ECO4: Covers loft, cavity wall, solid wall, and draught-proofing for eligible low-income households
• Great British Insulation Scheme: Specifically designed for insulation in homes rated EPC D-G
• Local authority grants: Many councils run their own insulation grant programmes
• Warm Homes Plan: Can include insulation as part of a broader package of upgrades

What Types of Insulation Are Covered?#

Savings figures from the Energy Saving Trust, based on a typical semi-detached gas-heated home.

For detailed guidance on accessing insulation funding, see: How to Access Home Insulation Grants in the UK for 2026.

Energy Efficiency Tax Credits and VAT Relief#

The UK government has extended the 0% VAT rate on energy-saving materials and their installation until April 2027. This is not a grant you need to apply for; it is applied automatically at the point of sale.

Qualifying Measures#

The 0% VAT rate applies to:

• Insulation (loft, wall, floor)
• Solar panels
• Heat pumps
• Biomass boilers
• Micro wind turbines
• Micro combined heat and power (CHP) units
• Draught-stripping
• Heating controls

Notable Exceptions#

Some measures are not covered by the 0% rate and still attract standard VAT:

• Double glazing and replacement windows
• Domestic battery energy storage (when installed separately from solar)

How Much Can You Save?#

On a heat pump installation costing £10,000 before VAT, the 0% rate saves you £2,000 compared to the standard 20% rate. On insulation costing £3,000, you save £600.

For a deeper look at tax credits and how they interact with grants, read: Understanding Energy Efficiency Tax Credits in the UK for 2026.

Other Grants and Support Worth Knowing About#

Beyond the major schemes above, several other funding routes can help with energy efficiency improvements:

• Boiler grants: If you are not ready for a heat pump but need to replace an inefficient boiler, some schemes can help with the cost. See our guide: Find Out If You're Eligible for a Boiler Grant in the UK
• Smart heating grants: Funding is available for smart thermostats and heating controls, often through ECO4. Read more: How to Qualify for Smart Heating Grants in the UK
• General energy efficiency grants: A broader look at all available funding for home improvements. See: How to Apply for Home Energy Efficiency Grants 2026 in the UK

How to Check Your Eligibility#

With so many schemes available, it can be difficult to know which ones you qualify for. Here is a step-by-step approach:

1. Check your EPC rating: If you do not have a recent EPC, you can look up your property at GOV.UK EPC register. Most grant schemes require a rating of D or below.
2. Review your benefits status: Many schemes prioritise households receiving means-tested benefits. Check whether you receive Universal Credit, Pension Credit, Child Tax Credit, Income Support, or similar.
3. Check your Council Tax band: GBIS eligibility depends partly on your Council Tax band (A-D in England, A-E in Scotland and Wales).
4. Contact your energy supplier: For ECO4 and GBIS, your energy supplier is the delivery route. Call them to ask about available measures.
5. Speak to your local authority: Councils often have dedicated energy efficiency teams and may offer additional local grants.
6. Use our eligibility checker: Our tool can help you quickly identify which schemes you may qualify for.

Frequently Asked Questions#

Can I claim more than one grant at the same time?#

Yes, in many cases you can combine grants. For example, you could receive a BUS grant for a heat pump and separately qualify for GBIS-funded loft insulation. However, you cannot use two grants to fund the same measure. Always disclose any other funding you have received when applying.

I am a tenant. Can I access any of these grants?#

Some schemes are available to tenants, but the property owner usually needs to consent to and sometimes apply for the work. ECO4 and GBIS can both apply to rented properties (including private and social housing), but the landlord must agree to the installation.

Do I need to pay anything upfront?#

For the Boiler Upgrade Scheme, the grant is deducted from your installer's quote, so you pay only the remaining balance. For ECO4 and GBIS, measures are often fully funded, though you may sometimes be asked to contribute. The VAT reduction is applied automatically at the point of sale.

What happens after ECO4 and GBIS end in March 2026?#

The government has indicated that successor schemes are being planned, but details have not yet been confirmed. If you think you may be eligible for ECO4 or GBIS, it is important to act before the 31 March 2026 deadline.

How long does the application process take?#

Timelines vary by scheme. BUS applications through your installer are typically processed within a few weeks. ECO4 and GBIS can take longer, as they involve an energy supplier assessment and may require a home survey. Allow 2-3 months from first contact to completed installation.

Are these grants available in Scotland, Wales, and Northern Ireland?#

The BUS is available in England and Wales only. ECO4 and GBIS operate across Great Britain (England, Scotland, and Wales). Northern Ireland has separate energy efficiency schemes. Scotland also offers additional support through Home Energy Scotland.

Practical Next Steps#

1. Check your EPC: Look up your home's energy rating at GOV.UK to see which schemes you qualify for.
2. Contact your energy supplier: Ask about ECO4 and GBIS before the 31 March 2026 deadline.
3. Get MCS-certified quotes: For heat pumps under the BUS, obtain quotes from at least three MCS-certified installers.
4. Explore local support: Contact your local council's energy efficiency team for area-specific grants.
5. Use our eligibility checker above: Answer a few questions to see which grants you may be able to access.

Sources#

• GOV.UK - Apply for the Boiler Upgrade Scheme
• GOV.UK - Boiler Upgrade Scheme: What You Can Get
• GOV.UK - The Great British Insulation Scheme
• GOV.UK - Energy Company Obligation (ECO4)
• Ofgem - Boiler Upgrade Scheme (BUS)
• Ofgem - Great British Insulation Scheme
• Ofgem - Smart Export Guarantee (SEG)
• Energy Saving Trust - Boiler Upgrade Scheme
• Energy Saving Trust - Great British Insulation Scheme
• Energy Saving Trust - Solar Panels