Green Energy Grants

Written by

Natalie Kunz

Last updated

13 March 2024

What Is a Green Energy Grant?

Since the phenomenon of sustainable development arose, governments are more and more increasing their sensitivity and concern towards green energies and renewables sources.To give incentives to UK citizens to switch to a more environment-friendly type of green resources, the government decided to set up grants.

These ‘green energy grants’ represent a way for the government to convince citizens that a better way of living and consuming natural resources is possible. Therefore the tradeoff of those “green grants” is for the government to provide a financial help to citizens willing to invest in new and eco-friendly resources to heat their property or get hot water. Green energy includes solar panels or solar PV, solar thermal, boilers such as biomass boilers, wood-pellets boilers, combi boilers and so on.

How Can I Apply for It?

According to your needs, you will be directed to a specific type of grant that best fits your needs. Each grant has a precise procedure that you have to follow step by step. Here are some guidelines to how to apply for a distinct type of green energy grant:

1. Identify your need: boiler replacement, solar panel installation.
2. Go on the government website to see what energy grant is the most suitable for you.
3. After answering the small survey on this website, it will tell you to what type of grant you have to apply for.
4. Before fully applying for a specific grant, be sure to be informed about it.
5. Apply by following the steps explained on the government website

Choose the Grant That Best Fits Your Needs

Green Homes Grant

The Green Homes Grant is the most recent government incentive rolled out in England. Under this scheme, homeowners and landlords can receive financial support for home improvements done between 30 September 2020 – 31 March 2021. 

There are two categories: primary measures and secondary measures. Primary measures encourage home renovations such as insulation or low carbon heating, while secondary measures support windows and doors renovations, as well as certain thermostat controls.

For more detailed information about the Green Homes Grant, check out our video below:

Boiler Replacement Allowance

If you have a 15-year-old gas or oil central heating boiler or even more, you can apply for this grant. You also need to earn an income inferior to £40,000 per year (including job, pension, benefits etc.) and be the owner of your house and occupy it as your main residence.

To be able to replace your old boiler with a new one and thus benefit from the Boiler Replacement Allowance (BRA), you must choose a new boiler with an ‘A’ rated SEDBUK efficiency grade. This boiler must be fixed up by a gas safe registered installer. This certification states that the installer is qualified to install your new boiler and implements a safe environment while working in your house.

Energy Performance Certificate

This certification enables you to know how energy efficient is your property. It gives you a grade from ‘A’ (very efficient) until ‘G’ (inefficient). According to your grade, you get advice on how you can save on your energy bills and improve your home efficiency. This grade is particularly interesting if you identified that you’re losing a lot of money on energy bills, or if you want to rent or sell your house.

A house with a good rating represents a better investment as people will be able to reduce their energy bills thanks to the improvements made with the EPC. However, this certificate is only valid for a 10 years period. You then have to renew it if you want to benefit again from its advantages.

Renewable Heat Incentive (RHI)

To be able to receive the RHI, you first need to receive the Energy Performance Certificate (EPC) which testifies that your house is energy efficient. Then, to benefit from the RHI, you need to invest in either one of the four following categories:

• Biomass boiler
• Solar thermal
• Ground Source Heat Pump
• Air Source Heat Pump

Be sure that your installation is certified with the Microgeneration Certification Scheme (MCS). Ask your installer when choosing the product to be sure that you will be eligible later on to benefit from the RHI.

The Green Deal

This grant enables you to receive financial help from the government to implement a new energy-saving measure in your property. This energy improvement could be for example the installation of double glazing, solid wall insulation, cavity wall insulation and boiler. Three different types of Green deal exist nowadays:

• Green Deal Assessment
• Green Deal Home Improvement Fund (GDHIF)
• Green Deal Finance

Feed-In Tariff

To benefit from this grant, you need to install those kinds of products, certified by an MCS supplier:

• Solar panels
• Wind turbines
• Hydroelectricity
• Micro Combined Heat and Power (MCP)
• Anaerobic digesters

The grant’s main focus is however on solar panels going from 4 kWh until 5 kWh capacity.

If you are eligible, you will earn money from each kWh generated during 20 years. However, you can also export or sell the energy produced that you do not use to the national grid and you will also earn money for it.

Energy Company Obligation

This grant focuses on helping people with low income, fuel poverty and vulnerable consumer to lower their energy consumption by implementing different green actions. These actions are undertaken by suppliers who have to fulfil 3 obligations:

• Domestic carbon reduction
• Community carbon reduction
• Home heating cost reduction

Hence, the vulnerable population can also benefit from this help and improve its energy bills with better use of heating resources and house properties.

The new ECO+ scheme will be launched in Spring 2023.

5% VAT Reduction for Energy-Saving Products

A VAT reduction of 5% on various energy-saving products is possible if you are over 60 years old or are receiving income or disability benefits. 

You can receive a tax rebate on the whole product or only the installation costs, depending on a few price factor.

If you are interested in green energy products, GreenMatch can help you compare the most competitive offers on the market. Simply fill in the contact form to get started—our service is completely free and non-binding.