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Reduce my energy bills

Want to know how to save on your energy bills? You’re in the right place. 

If you’re worried your home isn’t very energy efficient, it’s likely you’ve heard about green energy saving solutions like solar panels, air source heat pumps and home insulation. What you might not have heard about are the energy saving grants and other funding opportunities that could help you cover the cost of these solutions. Fortunately, that’s what we’re here for. 

Green Energy Grants

Local Authority Delivery Scheme (LADS) 

Ends 31/08/23

The Local Authority Delivery Scheme is a government-funded programme that helps households in the UK make energy efficiency improvements to their home and save money on their energy bills. The scheme provides grants for a range of measures, such as internal and external wall insulation. For properties that are already insulated but still meet the EPC criteria (outlined below), it also covers Solar PV solutions. 

LADS funding was allocated by direct award to local authorities who submitted a bid under the sustainable warmth competition or via a consortium within the Energy Hub. It works through Regional Energy Hubs, which use local knowledge and regional expertise to identify those households which are most likely to require support, and which would best benefit from energy efficiency upgrades. It is also managed through partners like EON, WarmWorks and Equans. 

Funding criteria include having an Energy Performance Certificate (EPC) of D, E, F or G; having a combined annual household income under £31,000 (gross); being in receipt of certain benefits, or being located in a local authority target area. 

Help me apply

ECO 4 (Energy Company Obligation)

The Energy Company Obligation (ECO) is a government energy efficiency scheme designed to help reduce carbon emissions and tackle fuel poverty. The scheme, which has been running since 2013, is funded by the ‘Big Six’ energy companies and is managed by Ofgem.

Under the ECO 4 scheme, medium and large energy suppliers are placed under a Home Heating Cost Reduction Obligation (HHCRO), which means they must promote energy efficiency measures such as insulation or heating system upgrades to low-income and vulnerable households. 

You may qualify for funding to cover or contribute towards energy saving measures under the HHCRO if you are a homeowner or private tenant in receipt of benefits, such as pension credit or income support, or if you are living in fuel poverty. If you live in social housing, the criteria are based on the EPC of your property.

Another of the ECO 4 scheme’s obligations is known as the Local Authority Eligibility Flexibility (LAFLEX) and it is designed to help homeowners or private tenants who are not in receipt of benefits, but are still living on a low income and are vulnerable to the effects of living in a cold home, with the installation of energy saving solutions. Home insulation experts can apply for LAFLEX on your behalf and provide you with services such as loft insulation, cavity wall insulation, room-in-roof insulation and a new boiler. 

LAFLEX is an extension of the government’s Energy Company Obligation (ECO) scheme and allows Local Authorities to set their own eligibility criteria. Generally speaking, most Local Authorities class ‘low-income households’ as those with a combined total of £27,000 per year. 

Help me apply

Home Upgrade Grant (HUG) 

Ends 31/03/2025

The Home Upgrade Grant supports low-income households by upgrading the energy efficiency of properties that do not have gas central heating. Energy efficiency measures covered by the grant include home insulation, and renewable home energy technologies such as air source heat pumps, and solar panels. Eligible households must have an annual income of less than £31,000 per year, while rented properties must have an EPC rating of D to G. 

The scheme allows multiple measures to be installed and focuses on the lowest EPC-rated properties, so the lower the rating, the higher the funding. 

The HUG scheme is managed through energy hubs, local authorities and management agencies such as E-On Green Funding Solutions and WarmWorks. Up to £630m of grant funding was made available for successful local authorities to help them deliver the second phase of the HUG scheme, from April 2023 until March 2025.

Help me apply

Boiler Upgrade Scheme (BUS) 

Scheme extended until 2028

The Boiler Upgrade Scheme (BUS) is a government-funded initiative to help households reduce their energy bills and carbon emissions, while increasing their comfort levels. The scheme offers grants to people who wish to replace their old, inefficient boilers with more energy-efficient options, such as heat pumps and biomass boilers. It is available to everyone and has no eligibility criteria. 

An MCS-certified installer can apply on your behalf for:

  • £5000 off the cost and installation of an air source heat pump;
  • £5000 off the cost and installation of a biomass boiler; or 
  • £6000 off the cost and installation of a ground source heat pump, including water source heat pumps.

This scheme is led by the installer, so they will make a BUS application on your behalf, liaise with Ofgem, and claim the money back from them at the end of the project. Therefore, the grant value should be reflected in your quote.  

The BUS scheme is operating on a ‘first come, first served basis’, so interested parties should register their interest with an air source or ground source heat pump installer. 

Help me apply

Zero VAT on energy-saving solutions

While not technically a grant, this initiative is certainly worth knowing about. In 2022, the government introduced a zero-rate of VAT for the installation of certain energy saving materials in residential accommodation, including solar panels, heat pumps, biomass boilers and insulation. There are certain eligibility criteria, but if it is met, the zero-rate of VAT will be automatically applied by your installer. This zero-rate will end after five years, providing an additional incentive to invest in green home energy solutions sooner rather than later. 

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