UK energy grants explained (2026)
Several government schemes help UK homeowners and tenants reduce their energy bills through home improvements. The landscape changes frequently, so we keep this page updated. Here are the main schemes currently available.
Boiler Upgrade Scheme (BUS)
Provides £7,500 towards an air source heat pump or £6,000 towards a ground source heat pump. Available to homeowners in England and Wales who are replacing a fossil fuel heating system. Your MCS-certified installer applies on your behalf — the grant is deducted from your bill. You need a valid EPC for your property. Calculate your heat pump costs including the grant.
ECO4 scheme
The Energy Company Obligation requires large energy suppliers to fund energy efficiency improvements for fuel-poor and low-income households. ECO4 can cover free loft insulation, cavity wall insulation, solid wall insulation, and first-time central heating. Eligibility is based on receiving means-tested benefits and having a low EPC rating (D, E, F, or G). Contact your energy supplier to apply. See how much insulation could save you.
GB Energy Scheme
The government's GB Energy programme is rolling out insulation and clean energy measures to homes across the UK. Targeted at low-income households, it provides free or subsidised insulation, heat pumps, and solar panels. Delivery is managed through local authorities and installers. Check your local authority's website for availability in your area.
Home Upgrade Grant (HUG)
Specifically for off-gas-grid homes with EPC ratings of D, E, F, or G. HUG can fund insulation, heat pumps, solar panels, and other improvements. Managed by local authorities in England. Particularly valuable for rural homes using oil, LPG, or electric heating. Compare your heating options.
0% VAT on energy-saving materials
Solar panels, heat pumps, insulation, and other energy-saving installations are zero-rated for VAT on residential properties until March 2027. This saves around 20% on installation costs. Calculate your solar panel savings with the VAT benefit.
Frequently asked questions
What energy grants are available in the UK in 2026?
The main grants are the Boiler Upgrade Scheme (£7,500 for a heat pump), ECO4 (free insulation for eligible households), the GB Energy Scheme (insulation and clean energy), and the Home Upgrade Grant (for off-gas-grid homes). 0% VAT also applies to energy-saving installations until March 2027.
Who qualifies for free insulation in the UK?
Households receiving means-tested benefits (Universal Credit, Pension Credit, Child Tax Credit, Income Support, and others) may qualify for free insulation through ECO4 or the GB Energy Scheme. Some schemes also cover fuel-poor households based on EPC rating and council tax band, even without benefits.
How do I apply for the Boiler Upgrade Scheme?
You don't apply directly. Contact an MCS-certified heat pump installer who will apply on your behalf. The £7,500 grant is deducted from your installation cost automatically. Your home must have a valid EPC. Use our heat pump calculator to see your costs after the grant.