Low Carbon Grants and Funding
Funding for people on low incomes
Energy Company Obligation (ECO4) scheme
The ECO4 scheme can provide support to install energy efficiency measures in the home of those considered to be in fuel poverty. The program provides funding for eligible homeowners and tenants, enabling them to upgrade their homes with energy-saving measures for free.
Eligible energy saving improvements:
- First time central heating
- Air source heat pumps
- Solar panels
- Loft insulation
- Room in roof insulation
- Floor insulation
- Internal wall insulation
- External wall insulation
Eligibility
You are eligible for the ECO scheme if you:
- live in a house with an EPC rating of an E or lower
- and are in receipt of certain government benefits including:
- Child Tax Credits (CTC)
- Child Benefits (depends on income threshold)
- Jobseekers Allowance (JSA)
- Employment & Support Allowance (ESA)
- Income Support (IS)
- Pension Credit Guarantee Credit
- Universal Credit (UC)
- Working Tax Credit (WTC)
- Housing Benefit
- Pension Credit Saving Credit
Home Upgrade Grant (HUG2)
The Home Upgrade Grant (HUG2) is a new Government grant scheme. It helps to fund energy saving upgrades for residents with off-grid gas heating systems. You may be eligible to apply if you struggled to pay your heating bill last winter.
Eligibility criteria:
The HUG2 is open to homeowners and private tenants in homes assessed as ‘hard to heat’. This is based on the Energy Performance Certificate (EPC) where the:
- home is heated by oil, coal, LPG and electric
- household has a combined annual income of less than £31,000 or receive income related benefits - such as Universal Credit
You can also apply if the home is heated by oil, coal, LPG and electric and you live in one of the following wards:
- Shepway South
- Shepway North
- High Street ward
You will receive a free EPC assessment if you do not have one already.
Tenants will also be able to apply if their landlord has four or fewer properties. Landlords will be required to contribute at least one third of the upgrade cost. Total costs will be agreed before work begins.
How will it help?
You may be offered energy saving improvements to help reduce your bills and carbon emissions. This could include:
- insulation and ventilation upgrades that will help to keep you warm in winter and cool in summer
- an upgrade to a low carbon heating system - such as an air source heat pump
- heating controls to ensure you only use heat when it is needed
- an energy efficient hot water solution that will keep your water warm for longer
- solar panels (PV) to generate electricity
- energy and cost efficient lighting
A survey will identify what is suitable for your home and you’ll get a free updated EPC assessment once the work has been completed.
Apply for HUG2
You can apply for HUG2 funding now if you are a private tenant, a landlord or a homeowner. Applications are open until December 2024.
Sustainable Warmth
Sustainable Warmth is a new government grant scheme designed to fund energy-efficiency upgrades to residents who are most likely to be impacted by the high cost of rising bills. These improvements will help residents to use less energy and spend less on their energy bills.
How it helps:
- energy saving tech and upgrades installed by approved installers
- creating warmer, healthier homes
- helping to cut carbon emissions
- funding available for homes on and off the gas grid
The grant will cover a range of energy-saving home improvements designed to balance the needs of residents with carbon reduction and grant availability.
Eligible energy saving improvements:
- Insulation and ventilation upgrades
- An upgrade to a low carbon heating system (the new heating system cannot include a gas or oil boiler)
- Heating controls
- Solar PV (that generates free electricity)
- Energy efficient lighting
The funding
EON is the supply partner and will manage the process and the contractors undertaking the work are either Baxter Kelly and IZ Energy.
The exact amount and eligible works available is dependent on the Energy Performance Certificate (EPC) and the fuel source that heats the home currently (the EPC can be determined by the programme if it is unknown).
Privately rented properties
To qualify the tenant must meet the income eligibility and the landlord will need to contribute a minimum of one third towards the cost of the upgrades in addition to the grant provided.
If overall costs exceed the maximum grant available, additional investment by the landlord will be required. Costs and the contributions expected from the landlord will be agreed prior to commencement of work.
Eligibility
- The household must be a private domestic dwelling in England with an Energy Performance Certificate (EPC) rating of E, F or G. If your property’s EPC is unknown, it can be determined by the programme. To check your EPC rating visit Find an energy certificate on GOV.UK.
- The household must have either:
- a household income of no more than £30,000 (before tax or any other deductions)
- an income where cost of living is below £20,000 (i.e. after rent or mortgage costs), or
- a household composition (e.g. number of dependents) which stretches income to a position where they would be in fuel poverty.
Please check your eligibility through the online application form.
If you prefer to phone, please call EON on 0333 202 4859.
Connected for Warmth (heating)
The Connected for Warmth scheme for heating offers a free air source heat pump to homeowners or private renters. The funding for Connected for Warmth comes from the Warm Homes Fund – a £150 million fund established by National Grid and administered by Affordable Warmth Solutions.
You are eligible for the Connected for Warmth grant if you:
You're likely to be eligible if your EPC rating is E, F or G and you heat your home using one of the following:
- electric storage heaters
- room heaters
- open fires
- electric warm air system
- electric underfloor or ceiling heating (not connected to an electric boiler)
- oil boiler
- LPG boiler
- electric boiler
- solid fuel boiler
AND
You are in receipt of any means-tested benefits below:
- Child benefit (depends on income threshold)
- Child Tax Credit
- Housing Benefit
- Jobseekers Allowance
- Income related Employment and Support Allowance
- Income Support
- Pension Credit Guarantee
- Pensions Credit Savings Credit
- Universal Credit
- Working Tax Credit
If you are on a low income and have a high cost of heating your home, or on a low income and vulnerable to the cold because of age, illness or disability, you may also be eligible.
If the above applies to you, then you can register your interest or call the Connected for Warmth team on 0800 029 4547.
Find out more about Connected for Warmth (heating) here
Connected for Warmth (insulation)
The Connected for Warmth scheme for insulation offers support to install loft insulation, cavity wall insulation, heating controls, and smaller energy saving measures (eg LED lighting, radiator panels).
You are eligible for the Connected for Warmth grant if you:
- Have an EPC rating of C-G
- and are in Council Tax bands A-D
Find out more about Connected for Warmth (insulation) here
General support for low carbon projects
Great British Insulation Scheme
The Great British Insulation Scheme can provide free or cheaper insulation to reduce your home’s energy bills by installing cavity wall insulation, loft insulation, and more.
You might get support if you:
- have an EPC rating between D-G
- and are in Council Tax bands A-D
The funding is open to homeowners, landlords, and tenants (either renting privately or from a housing association). Tenants will need permission from their landlord before any insulation can be installed.
In some cases, you may be asked to contribute to the cost of the installation.
Find out more about the Great British Insulation Scheme
Boiler Upgrade Scheme
The government is providing grants to encourage property owners to install low carbon heating systems such as heat pumps, through the Boiler Upgrade Scheme (BUS). These grants can help property owners overcome the upfront cost of low carbon heating technologies.
The scheme is open to domestic and small non-domestic properties in England and Wales. You can get one grant per property. Current grants are available for:
- £7,500 towards an air source heat pump
- £7,500 towards a ground source heat pump (including water source heat pumps and those on shared ground loops)
- £5,000 towards a biomass boiler
Find out more about the Boiler Upgrade Scheme here
Electric Vehicle Chargepoint Grant
The EV chargepoint grant provides funding of up to 75% towards the cost of installing electric vehicle smart chargepoints at domestic properties across the UK. It replaced the Electric Vehicle Homecharge Scheme (EVHS) on 1 April 2022. Only landlords and individuals that own or rent a flat can apply for this grant.