Government Incentives & Backed Schemes For Green Energy 2025

Published Feb 7, 2025By Libby Whitfield8 min read
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Embarking on the journey of upgrading your property’s sustainability through renewable energy sources and low carbon heating solutions, can be a significant investment for any homeowner. Fortunately, our Eco Butler is here to guide you towards available grants and funding opportunities to support this eco-conscious endeavour. Whether your considering solar panels, air source heat pumps, or another energy-efficient upgrade, our comprehensive guide is designed to help you maximise your savings while contributing to a greener future.


Explore how you can not only save money but also potentially generate extra income, by exporting excess energy to the National Grid, providing an opportunity to offset the cost of the initial installation.

Schemes Available

There are numerous schemes available that can help with your sustainable project, whether you are looking to boost your electricity generation or optimise your heating efficiency.


  • Energy Company Obligation (ECO4)
  • Great British Insulation Scheme
  • Boiler Upgrade Scheme (BUS)
  • Smart Export Guarantee (SEG)

1) Energy Company Obligation (ECO4)


ECO4, part of the Energy Company Obligation (ECO) scheme in the UK, focuses on improving energy efficiency in domestic properties that have previously received a low EPC rating of D and below. The primary objective of ECO4 is to drive retrofitting initiatives in households with existing heating systems, aiming to upgrade them to more sustainable and energy-efficient standards. By targeting properties with lower EPC ratings, ECO4 aims to address energy inefficiencies and reduce carbon emissions in the residential sector.


Through this scheme, homeowners can access funding and support to implement energy-saving measures such as insulation upgrades, heating system improvements, and other retrofit improvements.


Scheme

Start & End
Date

Energy Saving Measures
Installed

ECO

January 2013 to 31 March 2015

1.03 Million

ECO2

1 April 2015 to 31 March 2017

1.2 Million

ECO3

3 December 2018 to 31 March 2022

1.03 Million

ECO4

1 April 2022 until 31 March 2026

Ongoing


Find More Information For ECO, ECO2 and ECO3

2) Great British Insulation Scheme


Without sufficient wall or loft insulation you can lose up to 25% of the heat generated by your heating system. The Great British Insulation Scheme is a vital initiative in preventing further inefficiencies in your home by offering financial support towards insulation upgrades.


According to Ofgem this is a complementary solution to the ECO4 mentioned above, and is primarily offered to homes with an EPC rating lower than D that do not currently have cavity wall insulation or loft insulation. However, you can only receive funding for one insulation measure per property.


Click here to find out if you are eligible - https://www.gov.uk/apply-great-british-insulation-scheme

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Find Out If Your EPC Rating Is Low

For Grants such as ECO4 and The Great British Insulation Scheme You Must Have A EPC Rating Lower Than D To Be Eligible For Funding

Check Your EPC Rating

3) Boiler Upgrade Scheme (BUS)


If you are considering making the switch from a traditional fossil fuelled heating system to a more sustainable energy source, the Boiler Upgrade Scheme can provide financial support for the installation of heat pumps or biomass boilers.


Installation Type

Maximum Grant Available

Air Source Heat Pump

£7,500

Ground Source Heat Pump

£7,500

Biomass Boiler

£5,000


4) Smart Export Guarantee (SEG)


Not only can you generate electricity, you can also sell the surplus back to the national grid. One way you can do this is by applying to a SEG licensee (An Energy Company that offers SEG tariff). To find out if you meet the criteria, you can visit the Gov.uk website.


The average home could earn anywhere between £95 to £250 or higher. This is dependent on the size of your solar panel system or other technology types eligible for SEG (Solar PV, wind, hydro, micro combined heat and power (micro-CHP) and anaerobic digestion (AD)), the location of your property and the price (p/kWh) given by your energy supplier.


Key Takeaways


In conclusion, although making the switch to a sustainable energy source or low carbon heating system is a significant investment, there are many financial support schemes accessible to assist you on your green energy journey.


  • The ECO4 focuses on improving the energy efficiency of domestic properties with low EPC ratings.
  • The Great Insulation Scheme offers support for cavity wall and loft insulation.
  • The Boiler Upgrade Scheme provides financial assistance for the installation of heat pumps or biomass boilers.
  • The Boiler Upgrade Scheme provides financial assistance for the installation of heat pumps or biomass boilers.


By exploring these schemes and initiatives, you can save money and contribute to a greener environment.


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