In the race to reduce carbon emissions and combat rising energy costs, several government-backed grants and schemes have been introduced to help households and businesses transition to greener, more efficient technologies.
From solar panel installations and home energy upgrades to zero VAT incentives and decarbonisation programs, these initiatives make it easier and more affordable to adopt sustainable energy solutions.
Below, we break down the most impactful schemes available, highlighting how they can help you reduce your carbon footprint and save on energy bills.
Wasted energy makes up 30% of the average energy bill - do something about it! Get more from your smart meter with Loop.
Energy Company Obligation 4 (ECO4)
The Energy Company Obligation 4 (ECO4) scheme, worth £4 billion, provides free energy efficiency and heating measures—such as solar panels, new boilers, air source heat pumps, and insulation—to households in Great Britain. It supports those in fuel poverty, with eligibility determined by local authorities. The scheme runs from April 2022 to March 2026.
Solar Together
Solar Together is an ongoing group-buying scheme that helps homeowners, renters (with permission), and businesses install solar panels at 30-35% below average market prices. Participants register for free, with no obligation to proceed, while installers bid in an auction to win installation contracts. You’ll fully own the system, and all generated electricity is yours. The scheme isn’t tied to rent-a-roof programs, and solar batteries may also be available at reduced costs. After registration, you have about five weeks to decide on installation, and deposits are refundable if issues arise.
Home Upgrade Scheme (HUG2)
The Home Upgrade Grant (HUG) provides energy efficiency upgrades and low-carbon heating to low-income, off-grid households in England with an Energy Performance Certificate (EPC) rating of D to G. Funded by local authorities, eligible households can receive up to £10,000 in support. The scheme runs from April 2023 to March 2025 and is available in specific local authority areas.
Smart Export Guarantee (SEG)
The Smart Export Guarantee (SEG) allows homeowners to earn money by exporting surplus renewable energy, such as solar power, to the grid. Under this government-backed scheme, energy suppliers with over 150,000 customers offer an export tariff, paying households 1-24p per kWh for the electricity they sell. To qualify, solar panel systems must have a capacity of 5MW or less, be MCS-certified, and include a smart meter for half-hourly export readings. The scheme has no end date and supports a cleaner national grid while compensating renewable energy producers.
Zero per cent VAT
The Zero Percent VAT Scheme offers 0% VAT on the installation of energy-saving materials, including solar panels, home batteries, heat pumps, and insulation, in residential properties across the UK. Introduced on 1 April 2022, the scheme will run until 31 March 2027, after which the VAT rate will return to 5%. The 0% VAT applies only when a VAT-registered installer supplies and fits the hardware. This initiative aims to reduce costs for consumers and boost demand for renewable energy technologies.
Welsh Government Warm Homes Nest Scheme
The Welsh Government Warm Homes Nest Scheme offers free energy efficiency advice and improvements, such as solar panels, heat pumps, and insulation, to eligible low-income households and those in deprived communities across Wales. It aims to lower energy bills, reduce carbon footprints, and improve health and wellbeing. The scheme supports Wales' goals of reducing climate change, achieving net zero by 2050, and eradicating fuel poverty. Households receiving income-related benefits and homes with low energy performance are eligible. The scheme is ongoing with no set end date.
Social Housing Decarbonisation Fund
The Social Housing Decarbonisation Fund (SHDF) is a government program aimed at reducing the carbon footprint of social housing in the UK by upgrading energy efficiency. Running until March 2026, the fund provides financial support to install improvements like insulation, heat pumps, and solar panels, making homes warmer, greener, and cheaper to heat. Social housing tenants with low energy efficiency ratings receive these upgrades free of charge, funded by the government in partnership with social housing providers. The goal is to combat fuel poverty while reducing greenhouse gas emissions.
• • •
Cut Your Energy Bill With Loop
Loop is a FREE energy-saving app that links to your smart meter, analyses your energy use and shows you easy ways to save. On average, Loop users cut their energy use by 15%! How much could you save?
