What eco grants are on offer from the Government – and whether you’re eligible

As part of the Government’s ambitious transition to net zero by 2050, it has rolled out several schemes to help homeowners cover the costs of making their properties more energy-efficient.

While the Government will no longer be forcing properties to reach a certain Energy Performance Certificate (EPC) rating, the upgrades may be necessary if you’re affected by the forthcoming boiler ban, while some may opt to make changes in a bid to reduce their energy bills.

The issue is, it can be fiendishly hard to find out the details – and in some cases, whether or not you qualify for the financial help on offer at all.

Here, Telegraph Money takes a closer look.

Eco+ / The Great British Insulation Scheme

April saw the launch of the Government’s new Eco+ (Energy Company Obligation) scheme, an extension of Eco4 (see below). The £1bn Eco+ scheme, rebranded as the “Great British Insulation Scheme”, is set to run until March 2026.

It requires the biggest energy firms to provide funding for the installation of eco measures in thousands of the least efficient homes in the lowest council tax bands.

Estimates suggest households could save £400 per year on energy bills, according to the Energy Savings Trust.

The scheme is aimed at those not eligible for Eco4 help or other government support, such as those with an EPC rating of D or below, as well as those in council tax bands from A to D in England.

While Eco+ will focus predominantly on lower-cost measures, such as loft and cavity wall insulation, many feel that more substantial solutions are needed.

Stew Horne, head of policy at the Energy Saving Trust, said: “Upgrading our homes is the fastest way to cut bills, reduce emissions and improve energy security both now and in the long term, but there are still significant gaps in this area. 

“The Government needs to set out a plan for a national retrofit programme that will install measures, primarily insulation, into people’s homes at a large scale. The plan must also include enhanced incentives for people to swap their gas boilers for low-carbon heating systems, such as heat pumps, where upfront and running costs are still a barrier.”

Eco4: fears over more delays

Eco4 has been running since 2013 and already offers help to lower-income households when carrying out energy efficiency upgrades, such as insulation, smart heating controls, or new boilers.

To be eligible, you must be living in a property with an EPC of D or below, and receiving certain means-tested benefits, such as Universal Credit.

Eco4 has been thwarted by delays, with reports that many households missed out on getting their properties upgraded before this winter just gone.

At the same time, there are fears that such initiatives might create opportunities for fraud, as having a poor EPC rating could financially benefit installers. 

There are also concerns that builders could hike prices for those using eco schemes, meaning the consumer doesn’t see the benefit.

When taking any step to make your home more green, consumer group Which? recommends getting quotes from at least three different contractors to help you decide if you’re getting a fair price.

Boiler upgrade scheme: but heat pump running costs are still too high

The new Eco+ will also run alongside the existing boiler upgrade scheme. This £450m initiative offers grants of £7,500 to consumers who swap a gas boiler for an air source or ground source heat pump. 

This sum was recently increased from maximum grants of £5,000 and £6,000 respectively for air source and ground source heat pumps. However, given the £150m overall cap on the scheme has not changed, which means 10,000 fewer households will be able to claim the grant each year.

Josh Jackman from website The Eco Experts said: “While the programme massively cuts the upfront cost of an air source heat pump, which could be around £10,000, it does nothing to reduce the running costs, which are still slightly higher than those of a gas boiler.”

Green Homes Grant: closed early

Eco+ replaces the Government’s failed Green Homes Grant. This £1.5bn programme, launched in 2020, was designed to help homeowners in England insulate their homes by providing vouchers up to £5,000 for improvements, such as insulation and double glazing.

This was closed to new applicants in March 2021, just six months into its 18-month run. The scheme came under fire for being overly complex.

Lee Hyde from SaveMoneyCutCarbon, said: “This grant was initially well-funded and welcomed by many in the industry, but was later criticised for its slow rollout and lack of clarity around the eligibility criteria.

The scheme was closed early due to administrative issues and lack of uptake, and only around £320m of the funding was actually allocated.”

Others feel frustrated that the scheme fell at such an early hurdle.

Josh Jackman from The Eco Experts, said: “The Green Homes Grant could have prompted a home heating revolution, just in time to avoid the worst of the current energy bill crisis, but instead, the UK has been left with overwhelmingly poorly-insulated houses.”

Financial support for solar panels: no grant but you can sell back to the grid

Solar panels do not come cheap, with the Energy Saving Trust putting the cost of the average domestic 3.5kW system at around £5,500.

While there are currently no installation loans or grants for householders in England or Wales, there is a Government-guaranteed scheme called the Smart Export Guarantee.

The SEG is a financial initiative enabling you to sell back any excess electricity you generate.

According to the EST, a typical household could make between £80 and £120 a year based on a rate of 5p per kWh. (The SEG is a lot less lucrative than its predecessor which closed in 2019).

Mr Jackman said: “The feed-in-tariff used to pay solar panel owners more generous rates for the electricity they generated. The SEG has no minimum rate, meaning companies get away with paying a lot less for your electricity than you pay them.”

Note that the situation is different in Scotland, where households may be able to access a grant and interest-free loan for a range of eco home improvements, including solar panels.

Have schemes become less generous?

Despite the recent monetary increase to the boiler upgrade scheme, many feel the help on offer for eco measures has been increasingly pared back.

Mr Jackman said: “Schemes are less generous than they used to be. The Government is shirking its obligation to help homes become more energy efficient, to reach net-zero emissions, and save the country billions of pounds.”

Others point out that with schemes popping up and expiring over the past decade, it’s hard to get a measure on the total value of grants offered.

Lucinda O’Brien from Money.co.uk, said: “Energy efficiency grants have gone through several changes. But with budget cuts and revisions to schemes, many people will be questioning whether the current offerings are as generous as they were previously.”

Ms Hyde added: “The UK Government has introduced a number of grants and financial schemes with varying levels of funding and eligibility criteria. Given the cost of living crisis and the escalating climate emergency, when funding stands still, it is going backwards. 

“If the UK is to meet its net zero target, there is a need for more sustained and targeted support for energy efficiency.”

Too much choice

Another growing fear is that homeowners are getting increasingly bamboozled by what’s on offer.

John O’Connell, chief executive of the TaxPayers’ Alliance, said: “The alphabet soup of grants and schemes means taxpayers are stumping up for programmes that many people don’t realise even exist. 

“The cost of heavy intervention in the name of net zero is astonishing, all the while families up and down the country are struggling with the cost of keeping their homes warm.”

Elsewhere, the Energy Saving Trust is calling for a comprehensive, independent, national advice service for England, as exists in Scotland. 

The body wants to see this service offering tailored support for households with clear signposting to any financial or local assistance. This, it says, would give people the confidence to turn information and available funding into action.

This article was first published on May 20 2023 and has since been updated.