How energy home grants work: Eligibility, application and funding explained
The process behind energy home grants explained
Homeowners can now access financial assistance for energy-efficient home upgrades through energy home grant programs, available through government and utility initiatives. These grants assess eligibility depending on the household’s income, specific property needs, and potential environmental impact.
For those who live in the United Kingdom, one of the many energy grants is the Energy Company Obligation (ECO) scheme. It works by providing funding for energy-saving home improvements, such as insulation or efficient heating, to reduce energy costs for eligible households.
A recent report from the Department for Energy Security and Net Zero shows that in early 2024, houses dominated ECO program improvements at 82%, while flats represented a minor share at 7% of upgraded properties, with homeowners comprising 70% of all recipients. Homeowners can read more information on available options and how to apply on energy companies’ websites. (1)
Many programs focus on assisting low-to-moderate-income households, but some are open to anyone looking to improve their home’s energy efficiency. For example, the Connected for Warmth Insulation Scheme is available to all households. If your home falls under council tax bands A, B, C, or D, you may qualify for a free loft or cavity wall insulation. If you rent from a private landlord, they will need to apply on your behalf. However, if you’re renting from a social landlord, this scheme isn’t available to you. (2)
Great British Insulation Scheme (GBIS), formerly known as ECO+, also offers insulation measures to households. This scheme complements ECO4 but focuses on single insulation measures rather than a ‘whole house’ approach. It supports low-income and vulnerable households and is available for homes with an Energy Performance Certificate (EPC) rating of D-G in Council Tax bands A-D in England and A-E in Scotland and Wales. (3)
The impact of these programs is particularly notable among certain demographics. Research shows that low-income, Asian-origin owner-occupiers in energy-inefficient terrace houses, particularly in the industrial north of England, apply for ECO incentives at twelve times the expected rate. This trend demonstrates the effectiveness of targeted incentives in helping vulnerable groups improve their living conditions while reducing energy costs. (4)
These energy grant programs also align with broader national goals for enhancing residential energy efficiency. The introduction of the UK Net Zero Carbon Buildings Standard in 2024, for example, provides a unified framework for defining and achieving net-zero carbon buildings, helping direct financial support toward projects that contribute to national net-zero targets. (5)
Global political shifts play a role in shaping these energy policies. The potential U.S. withdrawal from climate agreements under Trump’s leadership, for instance, could shift the burden of global climate leadership to other nations, including the UK. Such changes can intensify countries’ efforts and commitments to climate action, reinforcing energy policies to reduce carbon emissions and tackle fuel poverty. (6)
Homeowners who want to take advantage of grants should gather the necessary documents, such as income proof, property ownership details, and project plans. Once the application is complete, they must submit it to the grant provider.
Timing is crucial, as many programs operate on a first-come, first-served basis or within a set funding period. This means that no further grants will be awarded upon funds exhaustion, underscoring the importance of timely applications. A good example is the Home Energy Scotland Grant and Loan Scheme. (7)
Meanwhile, the ECO scheme’s funding availability can fluctuate, and applications are processed based on criteria such as income, receipt of specific benefits, and property energy performance. The ECO scheme emphasizes prompt application, as funds are limited and allocated as long as resources are available. (8)
If approved, UK homeowners can use grant funding to make various energy-efficient upgrades, depending on the specific grant terms. Loft, cavity wall, solid wall, floor, and roof insulation upgrades—each targeting specific areas to reduce heat loss and improve thermal efficiency—are supported under programs like the Great British Insulation Scheme. (9)
Taking advantage of a home energy assistance program, alongside a recommended energy-efficient home improvement, greatly benefits homeowners in the UK.
References:
- “Household Energy Efficiency, Great Britain, Quarter 1 (January to March) 2024”, Source: https://assets.publishing.service.gov.uk/media/6656084d8f90ef31c23ebb57/HEE_Stats_Release_-_MAY_2024.pdf
- “Get help paying for energy efficiency home improvements”, Source: https://www.citizensadvice.org.uk/consumer/energy/energy-supply/save-energy-at-home/get-help-with-the-cost-of-energy-efficiency/
- “Great British Insulation Scheme”, Source: https://www.ofgem.gov.uk/environmental-and-social-schemes/great-british-insulation-scheme
- “Who applies for energy grants?”, Source: https://www.sciencedirect.com/science/article/pii/S2214629623001834
- “The New UK Net Zero Carbon Buildings Standard 2024 – piloting towards a brighter future?”, Source: https://www.charlesrussellspeechlys.com/en/insights/expert-insights/construction-engineering-and-projects/2024/the-new-uk-net-zero-carbon-buildings-standard-2024–piloting-towards-a-brighter-future/
- “ESG Watch: COP29 delegates look for rays of hope on climate action amid gloom about Trump victory”, Source: https://www.reuters.com/sustainability/climate-energy/esg-watch-cop29-delegates-look-rays-hope-climate-action-amid-gloom-about-trump-2024-11-13/
- “Home Energy Scotland (HES) Grant and Loan Scheme”, Source: https://fundingportal.energysavingtrust.org.uk/HOE01/
- “Energy Company Obligation (ECO)”, Source: https://www.ofgem.gov.uk/environmental-and-social-schemes/energy-company-obligation-eco
- “Great British Insulation Scheme”, Source: https://www.ofgem.gov.uk/environmental-and-social-schemes/great-british-insulation-scheme/homeowners-and-tenants
