Last updated May 2025

Introduction

With rising energy bills and growing awareness about our carbon footprints, many UK homeowners are now exploring energy-efficient upgrades. But with dozens of schemes, conflicting advice, and evolving policies, it’s hard to know which home energy grants you actually qualify for. That’s where this guide comes in. We’ll help you understand what’s available in 2025, who qualifies, and how to apply — all in clear, plain English.

Whether you’re replacing an old boiler, insulating a cold home, or looking to install solar panels or a heat pump, there may be a government-backed grant to support you. This guide is updated for 2025 and focused entirely on the UK homeowner experience.

[1] Source: Ofgem Energy Price Cap Report 2025 (https://www.ofgem.gov.uk)

What Grants Are Available in 2025?

Here’s a quick overview of the key government-backed grants and energy support schemes available across the UK in 2025:

– ECO4 (Energy Company Obligation): Supports insulation, heating systems, and renewables for low-income households. Check here.
– Boiler Upgrade Scheme: Offers £7,500 grants for air and ground source heat pumps. Check here
– Home Upgrade Grant Phase 2 (HUG2): For off-grid homes with low income or high fuel costs. Check here
– Warmer Homes Scotland & Nest (Wales): Regional support schemes. Scotland check here or Wales check here
– 0% VAT on energy-saving home improvements until March 2027. Applies to everyone!

ECO4 (Energy Company Obligation)

ECO4 is a UK government scheme designed to help lower-income households make their homes more energy-efficient. It can cover upgrades like loft and cavity wall insulation, air source heat pumps, solar PV, and heating controls.

You may qualify if you receive certain means-tested benefits or your local council allows you to apply under ‘LA Flex’, which allows councils to define additional eligibility criteria beyond national benefit rules. Not all local authorities participate.. EPC ratings of D or lower are usually eligible, and private homeowners, tenants, and some landlords can all benefit.

[6] Source: ECO4 Guidance, Ofgem (https://www.ofgem.gov.uk/environmental-and-social-schemes/eco)

Boiler Upgrade Scheme (BUS)

The Boiler Upgrade Scheme offers grants of £7,500 to support the upfront cost of installing air or ground source heat pumps. It’s open to owner-occupiers and small landlords in England and Wales, provided the home meets minimum insulation requirements. Note: Scotland has its own equivalent administered by Home Energy Scotland.

Applications must be made through an MCS-certified installer, who will apply on your behalf.

[7] Source: GOV.UK Boiler Upgrade Scheme (https://www.gov.uk/apply-boiler-upgrade-scheme)

Home Upgrade Grant Phase 2 (HUG2)

HUG2 helps low-income households in England who are not connected to the gas grid. It supports the installation of wall insulation, low carbon heating (like heat pumps), and solar panels.

The scheme is run by local authorities and is available to households with incomes below £31,000 or those in fuel poverty.

Regional Schemes

In Scotland, the Warmer Homes Scotland scheme offers free upgrades for eligible households, including insulation, draught-proofing, and low-carbon heating.
In Wales, Nest provides free home energy advice and improvements for eligible residents.
In Northern Ireland, the Affordable Warmth Scheme provides grants for insulation and heating upgrades.

VAT Discounts and Tax Relief

Since April 2022, homeowners have been eligible for 0% VAT on the installation of qualifying energy-saving materials — including heat pumps, solar panels, and insulation. This applies until March 2027 and is automatically handled by your installer.

How to Check What You Qualify For

To find out which grants you might be eligible for, consider the following questions:
– Do you own your home?
– Is it connected to the gas grid?
– What’s your EPC rating?
– Are you receiving means-tested benefits?
You can then use council tools or trusted installers to confirm your eligibility.

Avoiding Scams

Be cautious of cold callers or anyone asking for upfront fees to ‘secure’ a grant. Legitimate schemes do not require payment to apply. Always use certified installers (MCS or TrustMark) and confirm scheme details via official websites.

Source: Action Fraud UK (https://www.actionfraud.police.uk)

Conclusion: What to Do Next

Grants in 2025 offer a genuine opportunity to cut your energy bills, improve home comfort, and future-proof your property. Navigating the system can be complex, but support is available. Begin by checking your eligibility and reaching out to certified installers.

→ For more on the Home Upgrade Grants, visit the [Energy Saving Trust]

→ Check which upgrades and grants would be beneficial for you using the [Find ways to save energy in your home]

ECO4 Grants – Free Home Upgrades

You could qualify for free insulation, solar panels, or heating upgrades through the ECO4 scheme.
✔ Check if you’re eligible → Blue Ape Renewables | ★★★★★ | ECO4-compliant retrofits: insulation, solar PV, heating systems. Trusted UK installer.

£7,500 Heat Pump Grant (BUS)

The Boiler Upgrade Scheme provides £7,500 toward a heat pump installation for eligible homes.
✔ Get a free quote from certified heat pump specialists →Blue Ape Renewables | ★★★★★ | MCS-certified heat pump installs with full BUS grant support. Smooth application included.

Solar Panels + Battery Storage – VAT-Free

Solar panels and batteries are now 0% VAT until 2027.
✔ Request a tailored quote today → Blue Ape Renewables | ★★★★★ | Fully installed solar and battery systems. Grant-ready and VAT-free.

EV Charger Installation

Install a home EV charger alongside your retrofit upgrade.
✔ Book an EV charger install → Blue Ape Renewables ★★★★☆ | Fast installs of EV charging points from certified UK pros.