Grants and schemes
Government energy grants and schemes, explained plainly
Public funding for home energy improvements changes often, and the names change with it. This guide sets out what is open in England in October 2026, who each scheme is for and what standards the work has to meet. We do not run or award any of these schemes. We assess buildings and coordinate retrofit, so we can tell you where a property stands and what the rules ask of it.
- Boiler Upgrade Scheme
- £7,500 towards a heat pump
- Warm Homes: Local Grant
- Low-income homes rated D to G
- Social Housing Fund
- Social homes below band C
- VAT on energy-saving measures
- 0% in homes until 31 March 2027
- ECO4
- Closes 31 December 2026
Reviewed October 2026
The Warm Homes Plan in brief
The Warm Homes Plan, published on 21 January 2026, is the government's programme for home energy upgrades to 2030. It commits £15 billion of public investment, with the aim of upgrading up to 5 million homes and lifting up to a million families out of fuel poverty. It works in three ways.
- Funded upgrades for low-income households, through the Warm Homes: Local Grant for privately owned homes and the Warm Homes: Social Housing Fund for social homes.
- An offer for everyone else: the Boiler Upgrade Scheme's grants for heat pumps, and low and zero interest loans, the first phase of which was due to open in September 2026.
- Higher standards for privately rented homes, which are due to need the equivalent of EPC band C by 1 October 2030, subject to a cost cap and exemptions. Our landlord guide covers the detail.
Which scheme fits you
| You are | Look at | What it offers |
|---|---|---|
| An owner replacing a boiler, landlords included | Boiler Upgrade Scheme | £7,500 towards a heat pump |
| A low-income household in a privately owned home rated D to G | Warm Homes: Local Grant | Insulation, solar panels, a heat pump or smart controls, arranged by your council |
| A council or housing association tenant | Warm Homes: Social Housing Fund | Upgrades arranged by your landlord |
| Fitting solar panels | Smart Export Guarantee | Payment for the electricity you export |
| Having insulation, a heat pump, solar panels or a battery installed in a home | Zero-rate VAT | No VAT on listed energy-saving materials until 31 March 2027 |
Boiler Upgrade Scheme
The Boiler Upgrade Scheme, often shortened to BUS, pays part of the cost of replacing a fossil fuel or electric heating system with a low-carbon one. It covers England and Wales, is administered by Ofgem and has been extended to 2030.
| Technology | Grant |
|---|---|
| Air source heat pump (air to water) | £7,500 |
| Ground source heat pump, including water source | £7,500 |
| Biomass boiler, in rural homes off the gas grid | £5,000 |
| Air-to-air heat pump, in homes only | £2,500 |
The £2,500 grant for air-to-air heat pumps is new. GOV.UK and Ofgem both list it, but ask your installer whether they are able to claim it yet.
Until March 2027 there is an extra £1,500 towards an air source or ground source heat pump where the property is heated by oil or LPG and has no mains gas connection.
Who can apply
- You must own the property. That includes landlords, and the owners of second homes and business premises.
- The new system must replace fossil fuel or electric heating. A hybrid that keeps a gas boiler does not qualify.
- Social housing is not eligible, and nor are most new-build homes.
- There is one grant per property.
How it works
You do not apply yourself. You ask MCS certified installers for quotes, the installer you choose applies to Ofgem on your behalf, and the grant comes off the price you pay.
Do you still need an EPC?
Not to apply. Since 28 April 2026 a valid EPC has not been a mandatory requirement of the scheme, and the earlier rule about loft and cavity wall insulation was dropped in 2024.
A current certificate is still worth having. It is a record of the home before the work, and a new one afterwards puts the improvement on the public register.
Our heat pump guide covers cost, suitability and running costs.
Warm Homes: Local Grant
The Warm Homes: Local Grant funds energy improvements for low-income households in England who live in privately owned homes, whether they own or rent. Councils deliver it, and the scheme runs from April 2025 to March 2028.
Who qualifies
- The home is privately owned, and you either own it or rent it from a private landlord.
- It has an EPC rating of D, E, F or G.
- Household income is usually £36,000 a year or less. People who receive certain benefits or live in certain postcode areas can also qualify.
What it can pay for
After a home survey, the council may offer wall, loft or underfloor insulation, an air source heat pump, solar panels or smart heating controls. The council arranges and pays for the agreed work. If you rent, your landlord may be asked to pay towards it.
How to apply
Check your eligibility and apply through GOV.UK. Your council will usually contact you within 10 working days to arrange a home survey.
What the scheme requires of the work
Every upgrade has to follow PAS 2035:2023, the national retrofit standard. In practice that means a retrofit assessment before measures are chosen, a Retrofit Coordinator through the project, installers who are TrustMark registered and certified to PAS 2030 or by MCS, and lodgement with TrustMark at the end.
Where things stand locally
Each council runs the scheme in its own way, and many open and close it as funding is allocated. This was the position when we last checked.
| Council | Position in October 2026 |
|---|---|
| Coventry | Delivered with E.ON and Act on Energy for eligible people in Hillfields, Upper Stoke and Lower Stoke. |
| Solihull | The council's Healthy Homes Scheme, funded through the combined authority, covers parts of Chelmsley Wood. |
| Birmingham | Delivered by Next Energy for residents in Balsall Heath, Bromford, Castle Vale, Sparkbrook, and Tyseley and Hay Mills. |
| Nuneaton and Bedworth | Taking expressions of interest from homeowners. |
| Warwick district | Covers Leamington Spa, Warwick and Kenilworth. Delivered with Act on Energy. Closed to new applications, with a waiting list. |
| Rugby | The council says it no longer offers grants under the scheme. |
| Hinckley and Bosworth | Delivered across most of Leicestershire by the county council with Green Living Leicestershire. Not accepting new applications, but you can register your interest through GOV.UK. |
| Leicester | Delivered with Sustainable Building Services UK. Closed to new applications. The council says it may reopen in 2028, subject to funding. |
In Coventry, Solihull and Birmingham the funding is devolved to the West Midlands Combined Authority, which sets some of its own terms. Follow the link to each council's page for the current position.
Warm Homes: Social Housing Fund
This fund is for councils and social landlords. Individual tenants do not apply to it. Wave 3 was allocated £1.29 billion, with more added since, to bring social homes that are below EPC band C up to that standard where that can be done within the scheme's cost cap. Delivery runs to September 2028. The landlord has to provide at least half of the cost.
The work has to follow PAS 2035:2023, a Retrofit Coordinator advises on the measures suitable for each home, and every measure is lodged with TrustMark. If you are a social housing tenant, your landlord will tell you whether your home is included.
Warm Homes schemes, social housing and installers
Retrohaus Energy Consultancy provides retrofit assessment and retrofit coordination for homes improved under Warm Homes schemes, working with social housing providers and local authorities. We also support solar PV and air source heat pump (ASHP) installers, including the work they deliver under grant schemes.
Schemes that are closing or closed
- ECO4 closes on 31 December 2026. The government has said there will be no successor obligation on energy suppliers.
- The Great British Insulation Scheme ended on 31 March 2026.
- The Home Upgrade Grant is closed. GOV.UK points people to the Warm Homes: Local Grant instead.
If you are offered work under one of these names, check GOV.UK before you agree to anything.
Help that is not a grant
- No VAT on installation. Installing energy-saving materials in a home is zero-rated until 31 March 2027. That covers insulation, heating controls, heat pumps and solar panels, and batteries since February 2024. From 1 April 2027 the rate is due to become 5%.
- Smart Export Guarantee. If you generate electricity, for example with solar panels, suppliers that offer the guarantee pay you for each unit you export. You need a meter that records exports every half hour and an installation certified through MCS or an equivalent scheme. Suppliers set their own rates.
- Warm Homes loans. The Warm Homes Plan includes low and zero interest loans, offered through approved lenders, for measures such as solar panels, batteries and heat pumps. A first phase was due to open to borrowers from September 2026. When we last checked, the government had not published a list of lenders.
If you are a landlord
- The Boiler Upgrade Scheme is open to you as the property owner.
- Under the national guidance for the Warm Homes: Local Grant, one rented property per landlord is fully funded and a 50% contribution is asked on any others. A rented home rated F or G needs a registered exemption.
- In the West Midlands, the combined authority's offer covers 70% of the cost on up to four rented properties in specified areas, and 50% from the fifth.
All of this sits alongside the move to band C by 2030. Our landlord guide explains the standard, the £10,000 cap and the dates that matter.
Where Retrohaus fits
We do not award grants and we do not install anything. What we provide is the evidence each scheme runs on.
- An EPC, to establish the band a home starts from and to record the improvement afterwards
- A PAS 2035 retrofit assessment, which has to come before measures are designed under the Warm Homes schemes
- Retrofit coordination and TrustMark lodgement for councils, housing providers and installers
- Independent advice on which measures suit the building, before you commit to any of them
Protecting yourself
Use installers who are TrustMark registered and, for heat pumps and solar panels, MCS certified. Ask for the handover documents and keep them: the MCS certificate, the guarantees and any building control sign-off. They protect you if something goes wrong, and they are the evidence your next EPC will need.
Sources: GOV.UK, Warm Homes Plan (21 January 2026), Apply for the Boiler Upgrade Scheme, Apply for the Warm Homes: Local Grant, the Warm Homes: Local Grant policy guidance (July 2026), Warm Homes: Social Housing Fund Wave 3 and the government response on extending ECO4 (23 January 2026); Ofgem, Boiler Upgrade Scheme and Smart Export Guarantee pages; HMRC VAT Notice 708/6; West Midlands Combined Authority; the council pages linked above. This page is general guidance. Eligibility is decided by each scheme, and schemes change, so check the official page before you rely on anything here.
Grant questions
What people ask us about funding.
We are not a grant provider. These answers are taken from GOV.UK and Ofgem, checked in October 2026.
Can I get a grant for a heat pump?
In England and Wales the Boiler Upgrade Scheme gives £7,500 towards an air source or ground source heat pump that replaces a fossil fuel or electric heating system. Until March 2027 there is an extra £1,500 for homes heated by oil or LPG with no mains gas connection. Your installer, who must be MCS certified, applies for you and takes the grant off the price.
Do I need an EPC to get the Boiler Upgrade Scheme grant?
Not any more. Since 28 April 2026 a valid EPC has not been a mandatory requirement of the scheme. A current certificate is still a useful record of the home's insulation and heating before the work, and a new one afterwards puts the improvement on the public register.
Who qualifies for the Warm Homes: Local Grant?
Households in England living in a privately owned home, whether they own it or rent it, with an EPC rating of D, E, F or G. Household income must usually be £36,000 a year or less, although people on certain benefits or in certain postcode areas can also qualify. Local councils deliver the scheme, so what is open depends on where you live.
I am a landlord. Can I use these schemes?
In part. The Boiler Upgrade Scheme is open to property owners, including landlords. Under the Warm Homes: Local Grant the national guidance funds one rented property per landlord in full and asks for a 50% contribution on any others, and a rented home rated F or G needs a registered exemption. In the West Midlands the combined authority sets different terms.
Is ECO4 still open?
It is being wound down. ECO4 ends on 31 December 2026, a date set so that energy suppliers could finish meeting their existing obligations, and the government has said there will be no successor. The Great British Insulation Scheme ended on 31 March 2026. Support for low-income households now runs through the Warm Homes schemes.
Do you apply for grants on my behalf?
No. We are not a grant provider or an installer. For the Boiler Upgrade Scheme the installer applies, and for the Warm Homes: Local Grant you apply through GOV.UK or your council. What we provide is the assessment, the certificate and, on funded retrofit projects, the Retrofit Coordinator the rules require.
Is there VAT on insulation, heat pumps and solar panels?
Installing energy-saving materials in a home is zero-rated for VAT until 31 March 2027. That covers insulation, heating controls, heat pumps, solar panels and, since February 2024, batteries. From 1 April 2027 the rate is due to become 5%.