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What Are the Retrofit Incentives for the UK?

Last Updated on 20 July 2026

Access the latest retrofit incentives to reduce the cost of heat pumps and insulation. We manage every government retrofit scheme application on your behalf to keep you compliant. See what you can claim below and contact us to get started.

Boiler Upgrade Scheme and Retrofit Incentives

What you get Up to £7,500 for hydronic or air-to-water and ground-source heat pumps, £2,500 for air-to-air heat pumps or heat batteries. Off-gas-grid homes may receive £9,000 from 21 July 2026. The scheme runs to 2030. GOV.UKFind a grant

Who it’s for Homeowners and small non-domestic buildings in England and Wales replacing a fossil fuel system. GOV.UK overview

Good to know Installation of energy-saving materials is at 0% VAT until 31 March 2027. This stacks with BUS. HMRC Notice 708/6

Planning rules eased England widened permitted development on 29 May 2025. Most air source heat pumps no longer need planning consent and larger units are allowed, with conditions. SI 2025/560

Warm Homes Local Grant

What you get Support for insulation and energy upgrades is now moving to the Warm Homes Local Grant following the end of previous schemes. Warm Homes PlanApply for a grant

Quality and compliance Government audits show the importance of professional installation for solid wall insulation. We use accredited designs and document ventilation and moisture risk as standard. Latest scheme statisticsPolicy update

Energy Company Obligation 4

What you get Whole-house energy efficiency upgrades targeted at low-income or vulnerable households. ECO4 now runs to 31 December 2026 and is delivered via energy suppliers. Ofgem overviewSupplier guidance

Who it’s for You must meet supplier eligibility. We can check this for you and manage referrals. Ofgem

0% VAT on energy-saving materials

What you get 0% VAT on the installation of energy-saving materials such as heat pumps and biomass boilers until 31 March 2027. Groundworks for ground and water source heat pumps also qualify. From 1 April 2027 the rate reverts to 5%. HMRC Notice 708/6

Local authority and social housing routes

These are not homeowner-applied schemes. We support councils, registered providers and contractors with delivery, design and QA.

Home Upgrade Grant Phase 2 HUG2 closed to new bids. Delivery runs to March 2025, with final batch deadlines now passed. Check with your council for any in-flight projects. GOV.UKDelivery guidance PDF

Warm Homes Social Housing Fund Following Wave 2.2, providers are now looking toward Wave 3 for continued decarbonisation. Successor scheme guidance

Warm Homes Plan

The government has earmarked £13.2 billion for home upgrades across 2025/26 to 2029/30. Packages are expected to include insulation, heat pumps and solar. We will update this section as homeowner guidance lands. Spending Review 2025

How we help with retrofit incentives

  • Confirm eligibility and the most cost-effective route
  • Provide compliant designs and performance models
  • Manage grant paperwork and evidence packs
  • Install to PAS-aligned methods with full QA
  • Commission, handover and post-install checks

Next steps

1 Tell us your property type, current heating and EPC.
2 We confirm what you can claim and issue a fixed quote.
3 We install and handle the grant claim for you.

FAQs about the government retrofit scheme

Can I combine BUS with 0% VAT Yes. BUS is a grant. The VAT relief is a separate tax rule that applies to the installation. HMRC

Do I need planning permission for an air source heat pump In most cases no, under the updated permitted development rights in England from 29 May 2025. Some sites still need consent such as listed buildings or flats with specific constraints. SI 2025/560

When does BUS end Voucher issuing is scheduled to close 31 December 2027. Book early to avoid cut-offs. Find a grant

Common questions about the government retrofit scheme

Do I need an EPC for a government retrofit scheme?

A valid Energy Performance Certificate (EPC) is no longer required for the Boiler Upgrade Scheme as of April 2026. However, your EPC band still matters for other insulation initiatives like ECO4. We can check your property records to find the most effective route. Ofgem guidance

Can landlords and private tenants access retrofit incentives?

Yes. Landlords can apply for heat pump grants, provided they inform their tenants about the planned work. If you are a tenant looking to upgrade the property, you usually need your landlord’s written permission before you claim any funding. Citizens Advice

Can I combine different retrofit incentives?

You can combine a government heat pump grant with the temporary 0% VAT relief to significantly reduce your total installation cost. But you generally cannot stack two different government grants for the exact same physical measure. HMRC Notice 708/6

Do I need planning permission for an air source heat pump?

Usually not. Updated permitted development rules in England as of May 2025 mean most standard domestic installs skip formal planning. Properties like listed buildings or flats still need consent, which our team manages for you. SI 2025/560

When does the current government retrofit scheme expire?

Boiler Upgrade Scheme vouchers are scheduled to run until 31 December 2027. The 0% VAT relief on installation work reverts to the standard 5% rate earlier, on 31 March 2027. Secure your funding early to avoid these cut-off dates.

Are there funds for non-domestic buildings?

Yes. The Boiler Upgrade Scheme covers some small non-domestic buildings alongside standard residential homes. Self-builds and holiday properties have specific compliance conditions, so contact us directly to confirm exactly what you can claim.

Author

  • A middle-aged man with short gray hair is smiling, wearing a light checkered shirt, standing in front of a plain light-colored wall.

    I lead the Property Services team at Aspect Group Services, bringing years of experience in construction and a practical approach to delivering high-quality work. My background in project management means I keep projects running smoothly, on time and to a high standard.

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