Funding Available for Improving Home Efficiency

Following the announcement of the Government’s Ten Point Plan and its commitment to reducing carbon emissions to net zero, the government has implemented a range of schemes to improving the energy efficiency of UK homes. As a result, there is a variety of funding options available for households looking to retrofit their home and make it more energy efficient.

What follows below is some useful information on each scheme, including the benefits, eligibility and timings.

The schemes;

  • Energy Company Obligation (ECO3 and ECO4)
  • Green Homes Grant Local Authority Delivery Scheme (GHG LAD3)
  • Home Upgrade Grant (HUG)
  • Boiler Upgrade Scheme (BUS)
  • Smart Export Guarantee (SEG)

Energy Company Obligation (ECO3 and ECO4)

The Energy Company Obligation (ECO) is an energy efficiency scheme that is aimed at reducing carbon emissions and tackling fuel poverty. The ECO is not a government grant, but rather a legal obligation placed on larger energy suppliers to financially support domestic households to install measures that improve energy efficiency within the home.

The energy companies determine which measures to fund and how much funding to provide and therefore different companies are likely to provide different levels or types of support however common upgrades typically include improving insulation and heating measures for low-income and vulnerable households.

Are you eligible?

In order to be eligible for funding from the ECO scheme you must:

  • Either be a homeowner or have permission from your landlord
  • Be in recipient of means tested benefits
  • ALTERNATIVELY:
  • 50% of the target is allowed for homeowners on low incomes but NOT in recipient of benefits (known as ECO4 Flex)
  • AND your home must be in bands D-G for energy efficiency

Or, to check your eligibility CLICK HERE  

Key Dates:

It has been announced that 10% of certain measures of ECO3 delivery will be carried over into ECO4. The ECO4 scheme will run from March 2022 to April 2026.

Making an application:

You can make further enquiries about ECO measures by contacting any of the obligated energy suppliers.
For a list of the obligated suppliers and their contact details CLICK HERE 

Additional Useful Links:

  • For more information about ECO4 and your eligibility CLICK HERE 
  • For more information on the Energy Company Obligation (ECO) on the east Hampshire District Council CLICK HERE
  • For FAQs on ECO4 CLICK HERE
  • For more general information CLICK HERE


Green Homes Grant Local Authority Delivery Scheme (GHG LAD3)

The Green Homes Grant Local Authority Delivery (GHG LAD3) Scheme is administered by local authorities and aims to improve the energy efficiency of low-income and low energy performance households. Under this scheme, grants of up to £10,000 are available for eligible private homeowners to cover a number of measures, including:

  • Solid wall insulation (internal & external)
  • Cavity wall insulation
  • Hard to treat cavity wall insulation
  • Loft insulation
  • Underfloor insulation
  • Air source heat pumps
  • Solar PV
  • Room in roof insulation
  • Smart heating controls (when combined with another measure)

Are you eligible?

To be eligible, you must have:

  • A home with low energy performance: energy performance certificate (EPC) ratings of D, E, F, or G
  • A combined household annual income of no more than £30,000 (before housing costs are deducted)
  • Not have received funding from LAD1 or LAD2 schemes

Key Dates:

LAD3 is now open for applications. The scheme will run until March 2023.

Making an application:

Applications can be made through the Warmer Homes website: CLICK HERE

Additional Useful Links:

  • For more information about the scheme CLICK HERE 
  • More information from Winchester City Council CLICK HERE

Home Upgrade Grant (HUG)

The Home Upgrade Grant (HUG) is a scheme aimed at supporting low-income households to upgrade the worst-performing off-gas-grid homes and make them more energy efficient. Funding will be available to support eligible households to install energy efficiency and low carbon heating upgrades.

Retrofit grants of up to £25,000 will be available, and the scheme is due to be launched at the same time as LAD3 (April 2022). The scheme will run until March 2023.

The following measures are covered:

  • External Wall Insulation or Internal Wall Insulation
  • Cavity Wall Insulation
  • Loft Insulation
  • Underfloor Insulation
  • Air Source Heat Pumps
  • High Heat retention storage heaters
  • Solar PV
  • Heating Controls
  • Room in Roof Insulation

Key Dates: April 2022 – March 2023

Boiler Upgrade Scheme (BUS)

The Boiler Upgrade Scheme (BUS) will be open from April 2022 to provide grants of up to £5,000 for property owners to help install heat pumps (occasionally this can be extended to biomass boilers), to replace gas boilers. There are also grants of £6,000 for Ground Source Heat Pumps.

For more information on the scheme from Ofgem CLICK HERE

Are you eligible?

To be eligible you must:

  • Own your property and it must have an installation capacity up to 45kWth
  • a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation 
  • Be replacing an existing fossil fuel system (oil, gas, or direct electric)

Key dates:

Installers can open an account with Ofgem on 11th April

Applications for grants are due to open on 23rd May

Making an application

Installers apply for the grant on behalf of the resident; Ofgem is the scheme’s administrator

Aim to get a range of quotes from different installers for best value for money 

Further Links for Information:

Smart Export Guarantee (SEG)

Under this government-backed initiative you can receive regular payments from electricity suppliers (SEG Licensees) for the low-carbon electricity that you export to the National Grid. For context, you can expect to receive around £100 a year from a typical solar PV system.

Are you eligible?

Anyone with one of the following technology types can be a SEG Generator:

  • Solar photovoltaic (solar PV)
  • Wind
  • Micro combined heat and power (micro-CHP)
  • Hydro
  • Anaerobic digestion (AD)

These installations must be located in Great Britain and have a total installed capacity (TIC) of no more than 5MW, or no more than 50kW for Micro-CHP.

How does the SEG work?

The rate paid to SEG Generators, contract length and other terms are determined by SEG Licensees and therefore SEG Generators should shop around to find a SEG Licensee that is best for their individual circumstances. SEG Generators receive a payment from their chosen SEG Licensee for the electricity that they export back to the National Grid. These payments are calculated using export meter readings.

Additional Useful Links: