Funding Available for Improving Home Energy Efficiency

The UK government’s £15 billion Warm Homes Plan sets out a target to support householders as well as targeting up to 5 million homes and lift up to a million families out of fuel poverty by 2030. The scheme will be administered by local authorities with East Hampshire funding forming part of wider successful bid from Portsmouth City Council of £26 million for retrofit work including, solar heat pumps and insulation .

A summary below gives an overview of the current grants and funding available along with other incentives schemes (England only).

If you would like further guidance on eligibility, funding, or any questions on the schemes available, then please contact our energy advice team using the contact us page.

 

Last updated May 2026

Scheme Name

Eligibility

Funds available

Measures covered

Warm Homes:

Local Grant

Privately owned (owner or Landlord) with household income less than £36,000 per annum
EPC rating of D, E, F or G.
Household income must usually be £36,000 a year or less. If you earn more than that, you might still be eligible if either:

- You live in a certain postcode area

- Someone in your household is getting certain benefits

Maximum £30,000 per property. Actual grant available to be to be determined by local authorities

Wall, loft and underfloor insulation

Air source heat pumps

Smart controls

Solar panels

Battery storage

Warm Homes Plan

Details on eligibility not yet available. Likely to target homeowners who do not meet the "Local Grant" criteria above.

Not yet finalised. Possible mix of finance deals and/or grants towards home energy improvements

Wall, loft and underfloor insulation

Air source heat pumps

Smart controls

Solar panels

Battery storage

Boiler Upgrade Scheme

 (BUS)

Own the property you’re applying for.
Replacing a fossil fuel heating system such as oil, gas, LPG (also includes replacing an electric system).
Replacement system must meet certain minimum efficiency levels
Installer must be MCS certified
For a Biomass install – your property if off gas grid and in a “rural” location.
Installers are responsible for managing the application process and ensuring scheme requirements are met.

£7,500* towards an air source or ground source heat pump.

£2,500 towards an air-to-air Heat Pump.

£5000 towards a biomass boiler

Air Source Heat Pump

Ground Source Heat Pump

Biomass Boiler (rural, off-gas-grid)

Smart Export Guarantee

(SEG)

Eligible low-carbon technology that creates energy: see list under Measures
Hold an MCS certificate for the solar install.
A smart meter capable of half-hourly readings
Energy supplier must hold a SEG license.

Payments will vary between energy suppliers. Look for comparison sites for the best deals on SEG payments.

Solar PV

Wind

Micro CHP (<50 MW)

Hydro

Anaerobic Digestion (up to 5MW)

Warm Homes Fund /

Green Home Finance

Details to be finalised but members of the scheme will be able to offer a range of financing incentives to their customers to increase the accessibility and reduce the cost of finance for home upgrades.

Likely to be a mixture of low finance or 0% deals possible, cash incentives from mortgage companies up to £2,000) and joint purchase schemes

Wall, loft and underfloor insulation

Air source heat pumps

Smart controls

Solar panels

Battery storage

Zero rate VAT

Reduced VAT costs on eligible products and installation when carrying out certain improvements (see measures covered):

The installer is responsible for charging the correct VAT

0% VAT

(5% from April 2027)

Central heating and hot water controls

Draught stripping

Insulation on walls, floors, ceilings and lofts

Solar panels

Battery storage

Heat pumps

Micro combined heat and power units

Wood-fuelled boilers

Wind turbines

Water turbines

For further details on each of these grants, please expand the boxes below.

Grant funding available for energy efficiency measures

The Warm Homes: Local Grant is a government-funded scheme delivered by Local
Authorities under the Warm Homes Plan. It provide grants for energy performance upgrades and low carbon heating to low-income households living in England to achieve energy bill savings and carbon savings. These upgrades will be open to all fuel types, including on gas. Funding can cover a number of improvements supporting a range of energy efficient measures in a single package.

Measures covered:

If you’re eligible and your local council has funding available, they will arrange a home survey to see how your home could be made more energy efficient. They might suggest improvements like installing:

  • wall, loft and underfloor insulation
  • air source heat pumps
  • smart controls
  • solar panels

Eligibility:

Income eligible:

  • Live in an eligible postcode*
  • OR be on a household income of <36,000
  • OR someone in your household receives a means-tested benefits

In addition the property must be

  • EPC rated D, E, F, or G
  • Owned by the applicant or in the case of a tenanted property, the Landlord can make the application

 

Making an application:

Portsmouth City Council has applied for funding on behalf of a number local authorities including East Hampshire.

East Hampshire District:

To check eligibility and to join a application waiting list, see the Warmer Homes scheme link on the East Hampshire District Council website.

Chichester District:

For more information and application visit the Chichester District Council website.

 

Additional Useful Links:

The Boiler Upgrade Scheme (BUS) provides grants to encourage property owners to install low carbon heating systems to replace their fossil fuel systems.
Available funding:


•    £7,500* towards the cost of supply and installation of an air source heat pump 
•    £7,500* towards the cost of supply and installation of a ground source heat pump
•    £5,000 towards the cost of supply and installation of a biomass boiler (off-gas grid properties in rural locations only)
•    £2,500 towards the cost of supply and installation of an air-to-air heat pump


*The government is set to increase this amount to £9000 when replacing existing oil or LPG  heating systems 


Eligibility:

•    Own your property including if you rent out to tenants

•    Self-build properties are included but there are some exclusions

•    New build properties currently being built cannot receive a grant but if you have moved in you may still be able to get a grant.

•    Installed system maximum capacity of 45kWth for individual heat pump or 70kWth where multiple heat pumps are installed

•    Have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation

•    Be replacing an existing fossil fuel heating system (oil, gas, LPG, or electric)

•    For biomass boilers, your boiler has an emissions certificate showing that polluting emissions are kept to a minimum

•    Must replace the whole system

•    Grants are not available for a Hybrid system (e.g. mix of gas boiler and heat pump system)

•    The installer used must be certified by the Microgeneration Certification Scheme (MCS) to be able to claim the grant.

•    Your installer must commission and install the heat pump within 120 days of applying for the grant or it will not be eligible. 

Making an application:

Installers apply for the grant on behalf of the resident; Ofgem is the scheme’s administrator. The installer should confirm you’re eligible for the grant and the grants should be shown on the quote and invoicing.

Aim to get a range of quotes from different installers for best value for money.  Talk to the energy advice team first to discuss your situation and questions for heat pump installers. 

Additional Useful Links:

The Smart Export Guarantee (SEG) is a government-backed initiative which provides the homeowner with a regular payment for surplus low-carbon electricity generated and exported to the National Grid.  

The amount you earn will vary from home to home. But based on an average solar installation of 3.5 kWp and at 15p per kWh export rate by your energy company, you can expect to earn a £100-£200 or more per year depending on your own domestic usage.

The Smart Export Guarantee replaced the Feed In Tariff scheme.  If you have an existing installation and you are looking to make changes, e.g. add more solar or batteries, then we would suggest you seek guidance on the Ofgem site. Some changes are notifiable both with Ofgem and your FIT licensee. There are some circumstances where you can receive both FIT generation payments and SEG payments.

Eligibility:

You generate electricity using one of the following technologies:

•    Solar photovoltaic (solar PV)

•    Wind turbine

•    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.

Making an application:

You apply directly with your energy supplier. They must hold a current SEG license which can be checked on the Ofgem website. The rates of payment (tariffs) vary by electricity supplier, so you are advised to shop around to find a supplier that is best for your individual circumstances.  The tariff may be a fixed or variable.

Additional Useful Links:

•    OFGEM information on SEG 

•    Energy Saving Trust - SEG advice

 

Useful Links

Along with the free and tailored energy advice including funding support available from PeCAN energy advisers, you may also find the links below useful.

Chichester Citizens Advice - Energy support

Zero Carbon Guildford - Surrey and Guildford area home energy surveys

The Environment Centre - Advice and support for Hampshire residents

Energy Savings Trust - Grants & Loans