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What Are the Retrofit Incentives for the UK? [Updated December 2024]

As of December 2024, the UK offers several incentives to encourage energy-efficient home retrofits:

Boiler Upgrade Scheme (BUS)

The government is increasing support for the BUS, extending £7,500 grants to direct toward the installation of heat pumps. The goal of this funding increase is to make heat pumps a competitively priced option when put next to traditional gas boilers. In line with this funding increase, planning regulations are being eased to ensure that, when it comes to actually putting in a heat pump, the relevant authority is more likely to say yes.

Source: Reuters

Great British Insulation Scheme (GBIS)

This scheme, once known as ECO+, aims to increase the energy efficiency of homes by installing various kinds of insulation. It targets homes in particular council tax bands and homes where the residents receive certain benefits. Its aim is to make improvements that will pay for themselves in the form of reduced energy bills and that will also reduce the carbon emissions from these homes.

Source: Wikipedia

Energy Company Obligation (ECO4)

ECO4 targets support for low-income homes by mandating energy suppliers to help fund energy-saving measures. The scheme gives priority to properties with low energy efficiency ratings. It then aims to improve that situation by making energy-saving improvements, ensuring better energy efficiency and greater affordability.

Source: Wikipedia

Green Home Finance Initiatives

Incentives are being given by financial institutions to encourage energy-efficient renovations in residential properties:

Nationwide Building Society – Provides a Green Additional Borrowing product, which allows existing mortgage customers to borrow either £5,000 or £20,000 at 0% interest for energy-efficient upgrades.

Source: Nationwide

Virgin Money – Offers significant cashback incentives for homeowners who make energy-efficient upgrades, with the amounts depending on how long the homeowner’s mortgage lasts.

Source: The Sun

The UK is dedicated to slashing energy use and helping families across the nation implement energy-saving changes to their homes.

November 2024

By November 2024, the UK government will have several incentives in place to encourage both homeowners and landlords to enhance the energy efficiency of their properties.

The UK’s wider plan to reach net-zero carbon emissions by 2050, in addition to cutting energy bills and enhancing the quality of life, includes these incentives.

Warm Homes Plan

Launched in September 2024, this drive intends to raise more than one million homes above the fuel poverty line. Basically, it focuses on one thing: the enhancement of energy efficiency standards. Key parts of the initiative are the Warm Homes: Local Grant and the Warm Homes: Social Housing Fund, both of which support energy performance upgrades necessary for achieving the targets set out in the Fuel Poverty Strategy.

Source: GOV.UK

Boiler Upgrade Scheme

This program gives money to homeowners to replace fossil fuel heating systems with low-carbon alternatives, like heat pumps. The amount of the grant has been increased to £7,500, making it one of the most kind European schemes in paying for the kind of thing to which this scheme pays. This is all done in the name of “encouraging the reduction of carbon emissions from heating homes.”

Source: GOV.UK

Social Housing Decarbonisation Fund

The government set aside more than £75 million in March 2024 to enhance nearly 8,800 social homes with energy-efficient measures, including insulation and heat pumps. Social housing tenants in these residences are expected to see their annual energy bills shrink by about £400 after the improvements.

Source: GOV.UK

£1 Billion Social Housing Retrofit Initiative

Launched in October 2024, this initiative, launched in collaboration with Barclays UK Corporate Bank and Lloyds Banking Group, offers an impressive £1 billion to carry out renovations on social housing across the UK. The aim of these renovations is twofold: to step up the energy efficiency of the homes and to reduce the carbon footprint of social housing.

Source: Energy Live News

Energy Company Obligation (ECO) 4 Scheme: This government program requires energy firms to finance the installation of energy-efficient measures in qualifying homes, with a focus on those inhabited by low-income individuals or under certain government benefits. The direct measures undertaken can include anything from low-cost insulations to complete heating system replacements—efforts aimed specifically at reducing energy consumption.

Source: The Scottish Sun

Aspecte offers a full-service property retrofit, inclusive of every part of a modern, sustainable home. If you want to know exactly how we can support you in this initiative, from solar panels to loft insulation, don’t hesitate to get in touch with us.