Unlock £1,000s in Grants to Transform Your Home and Slash Energy Bills!

Upgrading your home to make it more energy-efficient is a smart move that can lower your bills, increase the comfort of your living space, and boost the value of your property. But the initial costs can feel overwhelming—especially if you’re unsure where to find the financial support you need. Luckily, there are numerous home upgrade grants and funding opportunities available in the UK that can make your home greener without draining your bank account. This guide will walk you through the options, explain how they work, and show you how to make the most of these resources to create an efficient, comfortable home.

Why Upgrade? More Comfort, Lower Bills, and a Greener Future

Before diving into funding options, let’s talk about why making your home energy-efficient is such a great idea. A well-insulated, energy-smart home isn’t just kinder to the environment—it’s kinder to you. Imagine a space that stays warm in winter and cool in summer without the need to constantly adjust the thermostat. Picture lower monthly bills and a home that feels more comfortable year-round. An energy-efficient home is more attractive to future buyers, too, since it means lower running costs and a higher property value. If you are still not conviced check out our blog Exceeding building regulations and Energy efficent homes and property valuation.

The UK government and other organisations want to support you in making these changes, which is why they offer various home upgrade grants and incentives to make your journey easier. Let’s explore what’s out there.

Life-Changing Grants for Energy Upgrades

No repayment needed.

One of the best ways to help fund your home’s transformation is through grants. These options provide financial support you don’t have to repay, making them incredibly appealing for homeowners wanting to go green.

ECO 4 (Energy Company Obligation): Free Upgrades for Eligible Homes

The Energy Company Obligation (ECO) is a government-backed initiative designed to help low-income households make their homes more energy-efficient. It’s aim is to reduce the number of people struggling with fuel provety. Now in it’s fourth phase, ECO 4 requires large energy suppliers to fund home upgrades for eligible homeowners. This can include new insulation, efficient boilers, and heating systems.

To qualify, the occupier of the home in question must be on certain benefits. See Eligible benefits below:

Child Tax Credits (CTC)

Child Benefits – depends on income threshold

Jobseekers Allowance (JSA)

Employment & Support Allowance (ESA)

Income Support (IS)

Pension Credit Guarantee Credit

Universal Credit (UC)

Warm Home Discount Rebate

Working Tax Credit (WTC)

Housing Benefit

Pension Credit Saving Credit

Assuming your Local Authority has issued its statement of intent (contact them now to find out), households may also qualify for an ECO4 grant in the following situations:

Based on low income (less than £31,000 per year)

Vulnerable persons (including debts, mental health conditions, having people aged 65+, or babies or children living at the property)

Health grounds (including cardiovascular disease, immunosuppressed, mobility issues and respiratory conditions)

Secondly the home must have a poor Energy Performance rating. Homeowners seeking the grant must have an EPC rating of D or worse, whilst private rental tenants and social housing properties must be an E or worse. You can find your energy certificate here.

For those who are eligible, the upgrades can make a huge difference in cutting down monthly energy costs without spending a penny upfront. It is important to note that you cannot directly apply for ECO funds, as this must be done through an energy supplier. There are many online platforms to check your eligibility, but may serve as intermediatory. Contacting the supplier is recommended. Typically, they will send an assessor around to the home to evaluate the energy saving work that will be undertaken. And in most cases the improvements will be made in the coming weeks. The value of the upgrade is not limited but is typically from £4000 to £15000+ depending on what’s required to lift the EPC rating. The types of upgrades you might expect are:

non-condensing boiler upgraded to an A-Rated boiler
inefficient storage heaters upgraded to high heat retention storage heaters
inefficient heating upgraded to air source heat pumps
wall insulation (cavity wall or internal wall insulation)
loft or roof insulation
ventilation
heating controls

Contact your local council to find their intent or contact your energy supplier directly or via Ofgem which has contact details of all suppliers.

Boiler Upgrade Scheme (BUS): Say Goodbye to Expensive Heating

Traditional boilers are inefficient and costly to run. The Boiler Upgrade Scheme (BUS) offers grants of up to £7,500 for replacing outdated fossil fuel heating system (Fossil fuel heating systems include oil, gas, electric or LPG (liquefied petroleum gas)) with more efficient alternatives, like heat pumps or biomass boilers. This grant helps property owners reduce their carbon footprint and save money in the long term. Unlike the ECO4 grant aimed at low-income households, BUS is aimed at all households. But a heat pump upgrade actually recommends a house to be of a EPC C or more. This is to encourage a fabric first approach that ensures the heat pump will be working efficiently, and not cost the occupier more to heat their home. The application process is typically through the heat pump installer. They subtract the grant from their bill. You can find Micro generation Certificate (MSC) accredited installers here. It will involve an assessment to determine your needs and the price will be specific to each case. In most cases there will be a cost to the home owner even with the £7500 grant. If you want to find out more about switching to a heat pump, check out the Gas Boiler vs Heat pump blog.

The Great British Insulation Scheme: A Boost for Your Budget

The Great British Insulation Scheme (formerly known as the Energy Efficient Homes Scheme) is a government initiative aimed at cutting energy consumption through better insulation. Check out the schemes implementation in 2023. The scheme helps homeowners and tenants access subsidies for projects like loft, cavity wall, and solid wall insulation. In some cases floor insulation will be recomended. It’s primary aim is to drive down energy use in at risk homes. Therfore to be eligible you must meet the follwing two criteria:

The Energy Preformance Certificate (EPC) must be between D and G.

In England the porperty must be in council tax A-D, whilst in Scotland and wales the chouse must be within council band A-E.

To begin this process check you eligability on the goverment website. If you are, your energy supplier will contact you to make arrangments for an in person assessment. Applications can be made by home owners and tenants.

Electric vehicle charger grants

The UK government offers the Electric Vehicle Homecharge Scheme (EVHS) and other grants to support the installation of electric vehicle (EV) chargers at homes and workplaces. These grants aim to make it more affordable for EV owners to charge their vehicles conveniently, promoting the adoption of electric vehicles and reducing carbon emissions.

There are several grants to cover a varity of different situations. In most cases you can be granted £350 or 75% of the install cost. These situations are as followings:

In all cases as the customer you first need to find an installer for a quote. With the quote you make a application via the goverment portal, to the applicable scheme.

Once your application is accepted, your installer will have 90 days to complete the installation. The grant will be paid directly to your installer, and you will see the grant amount deducted from your total installation bill.

The scheme is currently scheduled to end in March 2025. However, we are still awaiting a response from the new government on whether it will be extended. For more insights, check out our blog on Labour’s first three months in office and its potential impact on sustainability and construction.

Save Big with Tax Breaks and Incentives

Cut Costs with Government Support!

In addition to grants, there are tax breaks and incentives available to make your upgrades more affordable. These schemes lower the overall cost of energy-efficient renovations and provide additional support for homeowners.

R&D Tax Reliefs for Innovators: Claim for Your Home’s Unique Upgrades

Although typically associated with businesses, R&D tax relief can sometimes apply to homeowners. If your upgrades involve innovative energy-saving solutions or experimental new technologies, you may qualify for tax relief. This can offset the cost of pioneering projects that make your home more energy-efficient, making it easier to invest in cutting-edge upgrades. We advise you to seek support from a tax consultant to pursue this further or check if you can claim R&D tax relief here.

Energy-Saving Materials and Heating Systems: Enjoy 0% VAT

This tax break is not widely known within the building sector, especially for small projects and refurbishment work. In fact, it may be to your advantage to bring it to the attention of your builder. They can then pass on the cost savings to you.

The scheme began on 1 April 2022 and was updated in May 2023. It is scheduled to end on 1 April 2027. The VAT reduction applies to the following products and may cover both the supply and installation, depending on the circumstances:

Controls for central heating and hot water systems
Draught stripping
Insulation, including roofs, walls, ceilings, floors, water tanks, pipes, and other plumbing
Solar panels
Ground source heat pumps
Air source heat pumps
Micro combined heat and power units
Boilers fuelled by wood, straw, or similar vegetal matter
Wind turbines
Water turbines
Water source heat pumps
Battery storage systems
Smart diverters

For exact details, please direct your contractor to the Energy-saving materials and heating tax relief on the government website. It explains how the contractor can report it on their tax returns. There are both zero-rate installations and reduced-rate installations.

The ancillary works related to sustainable installations may also be included if they are part of a single price. It may be advantageous to request two independent contracts or quotes: one specifically for energy-saving materials and works eligible for the reduced VAT relief, and another for any additional works that do not qualify.

Capital Allowance Corporation Tax Reductions

Annual Investment Allowance (AIA): Covers up to £1 million of qualifying expenditure annually.

Capital Allowances offer businesses the opportunity to reduce their corporation tax liability by claiming tax relief on investments in eligible assets. Typically items that you keep to use in your business – these are known as ‘plant and machinery’. For companies involved in the residential housing sector—such as those managing Airbnb properties, student rentals, or new builds—this relief can significantly offset the cost of installing sustainable energy measures, enhancing both financial and environmental outcomes. You can only claim for items to be used in residential property if either:

you run a furnished holiday lettings business
the item is to be used in the common parts of a residential building, for example a table in the hallway of a block of flats

Capital Allowances allow you to deduct the cost of qualifying investments from your taxable profits. Sustainable energy measures, such as installing solar panels, heat pumps, or energy-efficient boilers, often fall under these allowances. Depending on the type of asset, you can claim a portion or even the full cost in the year of installation.

Limited Companies, Sole traders, Landlords and development firms can all gain access to the allowance, and is always claimed on your tax return. See the GOV website for details and seek advise from a tax professional.

Flexible Financing: Loans to Help You Go Green

Low-Interest Loans That Make Energy Upgrades Achievable

If grants aren’t available to you or if you need additional funding, green home loans offer a great solution. These loans come with lower interest rates than traditional loans, making them a budget-friendly way to finance energy-efficient home upgrades.

For homeowners, standard personal unsecured loans, depending on circumstances, can start from 6.2% APR. Asset-backed loans typically allow borrowers to access larger sums of money at reduced rates. On the other hand, green loans are personal or home improvement loans specifically designed to finance energy-efficient upgrades. These loans are often unsecured, meaning they don’t require collateral, and they come with competitive interest rates to encourage sustainable living. From new windows and doors to solar panels and better insulation, these loans cover a wide range of upgrades.

The best part? You can often structure repayments so that the savings you make on your energy bills help cover the cost of the loan, making it an easy choice for many homeowners. These rates are often below 6%. Barclays Green Home Improvement Loans, TSB Green Additional Borrowing, and Triodos Bank are good places to begin your lending journey.

Point-of-sale lending is becoming a popular option for homeowners looking to finance energy-efficient home improvements. These loans are offered directly at the time of purchase or service, allowing you to spread the cost of upgrades like insulation, solar panels, or heat pumps into manageable monthly payments.

A new option entering the market includes tailored plans from providers like Scroll Finance, which offers personal loans and “buy now, pay later” schemes. Local credit unions are also stepping in with community-focused lending options designed for retrofits, supported by initiatives like the Green Home Finance Accelerator. These programs aim to simplify access to affordable financing and are designed to work seamlessly with government grants and incentives such as the Boiler Upgrade Scheme or ECO4. Read more at UK Construction Media.

NatWest, Barclays, HSBC and Lloyds all offer financing for SMEs who which to help support a net zero transition. See this article on greeneconomy.co.uk for SMEs.

The Power of Green Mortgages: Buy or Improve Your Home with Lower Rates

Green mortgages are a relatively new financial product that rewards homeowners who choose energy-efficient properties or make upgrades to existing homes. These mortgages often offer better interest rates or additional borrowing capacity for properties that meet specific Energy Performance Certificate (EPC) rating, typically B or above. Some lenders also provide cashback options or additional funds for making energy efficiency improvements, making it a cost-effective way to turn your home into an eco-friendly haven. All the big banks offer a product that incentivises better energy efficiency standard but there also some non-highstreet banks too. Check out the moneysaving expert.com for more.

As these options gain traction, they provide homeowners with flexible, low-cost solutions to make their homes more energy efficient without large upfront costs. Keep an eye out for more innovative products expected to enter the market soon.

Feeling Overwhelmed? Resolve Can Make Your Energy Upgrade Journey Easy

Let Us Take the Stress Out of Your Home Upgrade

Finding the right funding options, navigating the requirements, and applying for grants can be complex. Every home is unique, and finding the right combination of funding, loans, and incentives takes time and expertise. If you’re feeling unsure about where to start, professional guidance can be a game-changer.

At Resolve, we’re dedicated to making your journey to a more energy-efficient home as smooth as possible. We understand that the process can seem daunting, but we’re here to help you every step of the way. Here’s how we can support you:

Expert Property Assessment: We conduct detailed energy assessments to identify the best areas for upgrades.
Access to Grants and Funding: We know the ins and outs of the available grants and funding options, ensuring you get the financial support you’re eligible for.
Full Project Support: From start to finish, we accompany your project.

Our goal is to make your energy upgrade process stress-free, cost-effective, and impactful. Contact Resolve today to see how we can help you create a more sustainable, energy-efficient home.

If you’re ready to take the next step, don’t do it alone. Resolve is here to simplify the process. Let us help you unlock the potential of your home, one energy-efficient upgrade at a time.