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Building a home with robust heating can be a challenge. With the mounting cost of heating and electricity being a major concern, it can be expensive to maintain your home’s temperature. Luckily, many incentives in the UK can help keep your heating running efficiently and save you money in the long run.
Let’s navigate some of the options and for which homes they would be most suitable.
Insulation & Heating Grants
When it comes to grants, gas boilers often lose out due to their lack of sustainability. That’s not to say there are no incentives you can take advantage of for gas boilers or heating, but they are rarer and apply more to low-income households.
The ECO4 (Energy Company Obligation) scheme falls under this umbrella and allows for retrofit projects for homes that have an energy efficiency rating between D and G.
This can enable applicants to receive some funding for:
- Insulation (cavity wall, loft, underfloor, solid wall)
- New boiler
- New storage heaters
- Central heating
All of these can contribute to decreased energy bills and more comfortable living. Several benefits can make you or a member of the household eligible for ECO4 funding. The benefits include:
- Child Tax Credits (CTC)
- Child Benefits – depends on income threshold* (see thresholds)
- Jobseekers Allowance (JSA)
- Employment & Support Allowance (ESA)
- Income Support (IS)
- Pension Credit Guarantee Credit
- Universal Credit (UC)
- Warm Home Discount Rebate
- Working Tax Credit (WTC)
- Housing Benefit
- Pension Credit Saving Credit
If you’re not sure if this would be worth it, it’s important to note that an improvement to an EPC band of C can potentially save £1,600 per year.
Heat Pump Grants
Heat pumps are widely considered the most eco-friendly type of heating and the cheapest in terms of operational costs. However, the installation costs of a heat pump can be rather high, which is why a grant will be necessary. An air source heat pump grant can be very effective in slashing costs (although air source heat pumps are the cheapest type).
The Boiler Upgrade Scheme (BUS) also covers heat pumps, allowing consumers to offset up to £7,500 on installation. You meet the specific income requirements of each grant or loan. This one applies if you own the property where the heat pump will be installed but you may also be eligible if you live in a rented property.
You also need to have a valid Energy Performance Certificate (EPC) with no outstanding loft or cavity wall insulation recommendations. If you do have insulation recommendations, you will be recommended those instead.
Biomass Boiler Grants
Biomass boilers are highly sustainable and have some grants that help support them. The average biomass boiler can cost a lot of money compared to most other heating options but the fuel costs can be relatively low and highly sustainable.
The Boiler Upgrade Scheme is one of the most viable options here as well. Homeowners can acquire £5,000 off the upfront cost of a biomass boiler and its installation. However, biomass boilers are only eligible if installed in rural locations and in properties disconnected from the gas grid.
Window Insulation Incentives
Windows are an often-overlooked heat escape zone which can cost homes a lot in terms of heating bills. Numerous incentives help cover the cost of better glazing to help mitigate these losses. Most of these apply to homes that only have single-glazing and are means-tested for low-income homeowners.
Single-glazed or badly sealed windows could lose any home about 10% of its heating, which can add up over time. Fixing such issues is an alternative to heating your home so there are a few government programs like
Obtaining windows is also possible through the ECO4 scheme but what you receive can vary based on inspection, so it’s not a surefire strategy. Still, as a comprehensive scheme, it covers England, Scotland, and Wales and is geared towards those income-related benefits. If you’re in Northern Ireland, there’s no need to feel left out. The Affordable Warmth Scheme is another one that can enhance your draught-proofing, windows, doors, and glazing.
Similarly, the Home Upgrade Grant (HUG2) can help procure new windows, doors, and draught-proofing all over the UK. The Home Energy Scotland Grant and Loan can help with certain upgrades for Scottish homeowners.
Energy Grants
Another aspect of improving heating is decreasing the cost of energy consumption. Many may opt for installing hydropower or solar panels to help decrease the energy load on their energy and heating systems. This can be a viable option especially if you have an electric boiler or a central heating system that is compatible with solar energy.
Luckily, the ECO4 scheme can come in handy here. The ECO4 scheme is based on means-testing and assessment of your property so it may not always lead to the exact recommendations you’re looking for.
Additionally, there is a 0% VAT applied by the government to make, not only solar panels cheaper, but also solar batteries.
