Government Grants For Home Energy Improvements: What's Available?

Looking to improve the energy efficiency of your home and cut down on your energy bills as a result?  You’re not alone. Thousands of homeowners have taken steps to increase how efficient their homes are, but more still are put off by the upfront costs of projects such as insulation and heating system upgrades.

Luckily for UK homeowners, however, there are now a number of government grants that make it much easier to increase a home’s energy efficiency affordably.

Read on to learn more about these grants, what you need to be eligible, and how to apply if you are.

Why energy-efficient home improvements matter

Taking the effort to reassess your home’s energy efficiency levels can really pay off. 

Save on energy bills

For a start, increasing how efficient your home is can save you money on  your energy bills in the long run; if you’re using less fuel to heat your home, you’re spending less. Simple. 

Increase home value

Increasing your energy efficiency also brings value in the longer term, too, by elevating the value of your home. A home with lower energy bills and desirable features such as modern insulation and double glazing is far more attractive to buyers and is, therefore, more likely to sell for a higher price.

Reduce carbon footprint 

There are also environmental benefits to consider. You’ll reduce your carbon emissions while bringing your home in line with the UK’s sustainability goals and regulations, a scenario where everyone, including the environment, wins.

 

Key government grants and schemes in 2025

If you’re on the hunt for assistance with decarbonising your home and/or improving its energy efficiency levels, below are the government grants and schemes currently available to homeowners in the UK (at the time of writing):

 1. Great British Insulation Scheme (GBIS)

Previously known as “ECO+”, the GBIS is designed to help improve homes with low energy performance ratings by providing subsidies or covering the cost of installing insulation measures.

Managed by Ofgem, and part of the Energy Company Obligation (ECO), this scheme provides funding for the installment of cavity wall insulation or loft insulation based on EPC (Energy Performance Certificate) rating and Council Tax band.

 

Am I eligible? 

You are eligible to apply to the GBIS if:

• You have an EPC rating of D to G.
• Your Council Tax band is A to D in England, and A to E in Wales.
• You live in the UK (excluding Northern Ireland).
• You own your home, are a landlord, or are a tenant with permission from your landlord.

Check your EPC rating and Council Tax band to determine your eligibility and make sure you have the following to hand: your total household income, a note of any benefits you may be receiving, and your email address and phone number.

Find out more about how to apply for the Great British Installation Scheme in another of our blogs.

How to apply 

Head to the GOV.UK website to and click “Start Now” to begin the eligibility checks process and start your application. You’ll need to fill in a few details (such as your energy suppliers’ name and property type and ownership status). Once this is complete, your energy supplier will contact you confirming your eligibility before arranging an assessment of your property. It’s at this point that you’ll find out what (if anything) you’ll need to pay to have the insulation work completed. 

 

2. Boiler Upgrade Scheme (BUS)

The Boiler Upgrade Scheme encourages property owners to replace their old fossil fuel heating systems with new low-carbon versions like air source heat pumps and biomass boilers. Eligible businesses and homeowners can receive up to £7,500 to bring down the upfront costs of replacing their systems with more efficient ones.

Am I eligible?

If you own your home, rental property, business, or second home and you’re switching out an old fossil fuel boiler for a new air source heat pump or biomass boiler, you’re likely eligible for the BUS. 

However, for biomass boilers in particular there are a few specific eligibility criteria that need to be met. We have an entire separate blog on the BUS which explains these criteria, and application process in much more detail if you’re interested. 

How to apply 

Simply contact an MCS-certified installer like Swale Heating to get a quote for the work you want carried out. Once you’re happy, the installer will apply for the grant on the Ofgem website for you. Just make sure that you apply in good time as the BUS runs out at midnight on the 31st of December 2027.

 

3. Warm Homes: Local Grant

An alternative to the now-expired HUG (Home Upgrade Scheme), the Warm Homes initiative is designed to provide free energy-saving home improvements to those living in a certain postcode area or those with certain incomes or benefits. 

If your local council is participating in the scheme, you can apply to have your home surveyed to determine how it can be made more energy efficient through improvements such as air source heat pumps, wall, loft, and floor insulation,  smart controls, and even solar panels. The council will then organise and pay for the work to be carried out.

Am I eligible?

Eligibility for the Warm Homes: Local Grant largely depends on whether your local council has funding available. Aside from this, though, you will also need to:

• Live in England.
• Privately own your home.
• Have an EPC rating of D, E, F, or G.
• Have a household income of less than £36,000 or live in a certain postcode area or be receiving certain benefits.

How to apply

Head to the GOV.UK web page to begin your application and determine your eligibility. Once you’ve successfully applied by filling in your details and answering a few questions, your local council should contact you within 10 working days to arrange a survey of your home. 

 

Additional support and local schemes

If you don’t qualify for any of the energy-efficient schemes from the local councils or governments above, additional government support for heating is still available.

- Energy Company Obligation (ECO4)

ECO4, running until March 2026, is designed to tackle fuel poverty by providing free support to homeowners receiving benefits. Under this scheme, energy providers are obligated to fund improvements for vulnerable households (improvements which could reach the sum of £40,000).

- Regional & local authority funding

There’s a variety of smaller schemes and funding available at the level of the regional and local. Using the “Help to Heat” page on the GOV.UK website, you can find energy grants for your home easily.

- Support for landlords and tenants

If you’re in the rental system, it can be trickier to make improvements to your home, especially if you are a tenant. However, there is support available to both landlords and tenants. Rental properties have to be maintained to achieve the minimum standard of energy efficiency by law, but there is a cost cap of £3,500 (including VAT) to landlords who must have these improvements. 

Find out more about the available methods of funding energy efficiency improvements to rental properties on the GOV.UK guidance page.

 

Get support with heating your home 

If you’re worrying about the costs of improving your home’s energy efficiency, UK home energy grants are an excellent way to make these upgrades more affordable. 

It is a good idea to act early while the funding is still available, especially in the case of the BUS and ECO4 when scheme closing dates have been given.

To ensure the grant application process goes smoothly, do your research, assess all your options, and ask the experts for help. Partnering with expert installers like Swale Heating, especially for schemes like the BUS where we can submit the application for you, takes a lot of the burden of applying off your shoulders.

Make a smarter investment for a warmer, greener home that’s cheaper to run today. Contact the experts at Swale Heating today or keep up to date with our blog for a steady stream of accurate information.