Government Grants & Incentives for Green Homes
A complete guide to every UK grant, scheme, and tax break available for solar panels, heat pumps, EV chargers, insulation, and more in 2025.
BUS Grant
£7,500
Towards a heat pump installation
VAT Relief
0%
On solar, batteries & insulation until 2027
EV Charger Grant
£350
For renters & flat-dwellers
ECO4 Scheme
Free
Insulation & heating for eligible homes
Boiler Upgrade Scheme (BUS) - £7,500
The BUS grant is the UK's flagship scheme for encouraging the switch from gas and oil boilers to clean heating. It offers £7,500 towards the cost of an air source heat pump (ASHP) or ground source heat pump (GSHP).
Key Details
The grant is deducted from your installer's invoice - you never have to pay the full amount upfront. Combined with 0% VAT, a typical ASHP installation that would cost £10,000 could end up costing just £2,500.
Smart Export Guarantee (SEG)
The SEG requires large energy suppliers to pay you for electricity you export to the grid from your solar panels or other small-scale generation. Unlike the old Feed-in Tariff, rates vary by supplier and are not fixed.
| Supplier | Export Rate | Type |
|---|---|---|
| Octopus Energy | 15p/kWh | Variable (Agile Export) |
| British Gas | 5.6p/kWh | Fixed |
| E.ON Next | 4.1p/kWh | Fixed |
| EDF | 3.0p/kWh | Fixed |
Rates as of early 2025 - check supplier websites for current rates. You don't need to be a customer to apply.
0% VAT on Energy-Saving Materials
Since April 2022, the UK government reduced VAT to 0% (from 5%) on the installation of energy-saving materials in residential properties. This applies until at least March 2027.
What qualifies for 0% VAT?
ECO4 Scheme - Free Insulation & Heating
The Energy Company Obligation (ECO4) scheme funds energy efficiency improvements for low-income and vulnerable households. Funded by the "Big Six" energy suppliers, it can provide free insulation, heating system upgrades, and even solar panels.
You may qualify if:
- • Your home has an EPC rating of D, E, F, or G
- • You receive certain benefits (Universal Credit, Pension Credit, Child Tax Credits, etc.)
- • Your home is poorly insulated
- • You live in social housing with a low EPC rating
Contact your energy supplier or local council to check eligibility. The scheme runs until March 2026.
EV Chargepoint Grant - £350
The OZEV (Office for Zero Emission Vehicles) grant provides up to £350 towards installing a home EV charger. Since April 2022, it's only available to renters and residents of flats - homeowners of houses must fund chargers themselves.
To qualify, you need off-street parking and must install an OZEV-approved smart charger. Your installer handles the grant application. See our EV Chargers Guide for full details.
Quick Reference Summary
| Scheme | Value | Available Until | Who |
|---|---|---|---|
| BUS Grant | £7,500 | Mar 2028 | Eng & Wales homeowners |
| 0% VAT | £250-£500 saved | Mar 2027 | All UK homeowners |
| SEG Payments | 3-15p/kWh | Ongoing | Solar panel owners |
| EV Charger Grant | £350 | Ongoing | Renters & flats only |
| ECO4 | Free measures | Mar 2026 | Low-income households |
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