Green Deal and ECO Funding for Energy Improvements

What This Requirement Covers

Several Government-backed funding schemes help homeowners and landlords improve the energy efficiency of their properties. The main current schemes are the Energy Company Obligation (ECO4), the Great British Insulation Scheme (GBIS), and the Boiler Upgrade Scheme.

Key Requirements

Energy Company Obligation (ECO4)

1. ECO4 (April 2022 to March 2026) requires large energy suppliers to fund energy efficiency improvements in fuel-poor and low-income households
2. Eligible measures include: cavity wall insulation, loft insulation, solid wall insulation, boiler replacement, heat pump installation, and other measures
3. Eligibility is primarily based on the household's income and benefits status, and the property's EPC rating
4. The property must be privately owned (owner-occupied or private rented) with an EPC rating of D, E, F, or G

Great British Insulation Scheme (GBIS)

1. GBIS (launched 2023) provides free or subsidised insulation for homes in the lowest EPC bands
2. Eligible measures include: cavity wall insulation, loft insulation, flat roof insulation, room-in-roof insulation, and solid wall insulation
3. A general eligibility group covers properties in Council Tax bands A-D with an EPC of D or below
4. A low-income group covers households receiving means-tested benefits

Boiler Upgrade Scheme (BUS)

1. Provides grants for heat pumps:

- Air source heat pump: Up to GBP 7,500 - Ground source heat pump: Up to GBP 7,500 - Biomass boiler: Up to GBP 5,000 (rural properties only, off the gas grid)

1. The property must have a valid EPC (no older than 10 years)
2. The installation must be carried out by an MCS-certified installer
3. The scheme runs until March 2028

Home Energy Scotland and Welsh Government Schemes

1. Scotland: Home Energy Scotland provides interest-free loans and cashback for energy improvements
2. Wales: The Welsh Government's Warm Homes Nest and Arbed schemes provide funding for low-income households
3. Northern Ireland: The Northern Ireland Sustainable Energy Programme (NISEP) provides support for energy improvements

Practical Compliance Tips

1. Check eligibility for ECO4 and GBIS before paying for insulation work; the funding can cover the full cost
2. For heat pump installations, apply for the Boiler Upgrade Scheme grant through your MCS-certified installer
3. Obtain a current EPC before applying for any funding scheme; most schemes require an EPC
4. Combine measures where possible (e.g., insulation and heat pump) for the greatest energy saving
5. Check for local authority grants and loans in addition to the national schemes
6. Keep all funding documentation, installation certificates, and EPCs for future reference
7. Energy efficiency improvements typically increase property value and reduce ongoing energy costs