Energy Support and Funding

Energy support in England is built around a small number of national funding schemes.
There are not dozens of separate government grants, even though it can often feel that way.

What changes is how national funding is delivered, who it is prioritised for and which routes are available at different times.

This page explains what support exists nationally, how it works and how eligibility is typically defined.

Understanding Energy Support in England

The National Picture

National support currently sits mainly in two schemes.

Energy Company Obligation (EC04)

For eligible low-income and harder to heat homes

Boiler Upgrade Scheme (BUS)

Support towards heat pumps and certain biomass systems

Find Out More

Energy Company Obligation (EC04)

  • ECO4 is a UK government policy that requires large energy suppliers to fund energy efficiency improvements in eligible homes.

    It is not a grant paid directly to households.
    Funding is delivered through obligated energy suppliers working with approved delivery partners.

    ECO4 has been one of the main national mechanisms used to improve energy efficiency in lower-income and harder-to-heat homes.

    Official Government Overview

  • ECO4 has typically supported measures such as:

    • Loft insulation

    • Cavity wall insulation

    • Solid wall insulation

    • Heating system upgrades in specific circumstances

    • Associated energy efficiency improvements required to meet scheme standards

    The exact measures available depend on household eligibility, property suitability, and delivery rules.

    Official guidance on measures:
    https://www.ofgem.gov.uk/environmental-and-social-schemes/energy-company-obligation-eco

  • Households have typically been eligible forECO4 only if they meet a qualifying household route and the property is suitable for improvement.

    This has usually meant one of the following applies:

    • Someone in the household receives specific means-tested benefits

    • The household qualifies under a local authority referral route (LA Flex), which may include vulnerability related to health, disability, or low income

    In all cases, the property must also meet scheme requirements relating to energy performance and suitability.

    A low energy performance rating alone has not been sufficient to qualify.

    Official eligibility guidance:
    https://www.gov.uk/energy-company-obligation#who-can-get-help

  • Although ECO4 is a national scheme, households do not apply directly through the government.

    Delivery has usually taken place through:

    • Approved installers working on behalf of energy suppliers

    • Local authority referral pathways

    • Supplier-led delivery programmes

    The delivery route depends on location, household circumstances, and current funding availability.

  • Contact your local council to find out if they’re taking part in the Energy Company Obligation scheme, or contact an energy supplier directly.

    You can find contact details of suppliers who are taking part in the scheme on the Ofgem website.

    Nuvoe does not process applications.
    Our role is to explain how the scheme works so households can approach the correct official route with clarity.

  • For authoritative and up-to-date information, refer to:

    Nuvoe explains how energy support schemes work in practice.
    Official sources provide regulatory and policy detail.

Find Out More

Boiler Upgrade Scheme (BUS)

  • The Boiler Upgrade Scheme (BUS) is a government grant that helps property owners replace fossil fuel heating systems with low-carbon heating technologies.

    The scheme is designed to reduce carbon emissions from heating, rather than to provide income-based support.
    It is not means-tested and is based primarily on property eligibility, not household income or benefits.

    BUS is available in England and Wales.

    Official scheme overview (Ofgem)

  • BUS provides a fixed grant towards the installation of eligible low-carbon heating systems:

    • £7,500 towards an air source heat pump

    • £7,500 towards a ground source heat pump

    • £5,000 towards a biomass boiler (limited cases, mainly rural)

    Biomass boilers are only eligible where:

    • The property is rural

    • There is no access to the gas grid

    • Air or ground source heat pumps are not suitable

    BUS does not fund:

    • Gas or oil boilers

    • Hybrid systems

    • Solar panels on their own

    • Insulation as a standalone measure

  • The Boiler Upgrade Scheme applies to:

    • Domestic properties (most homes)

    • Small non-domestic properties, such as:

    • Small commercial buildings

    • Small public sector buildings

    Large non-domestic or industrial properties are not eligible.

  • New-build properties are not eligible for BUS unless:

    • The property has never been connected to the gas grid
      and

    • A valid Energy Performance Certificate (EPC) has been issued

    Most new builds are excluded because low-carbon heating should already be installed at construction stage.

  • You may be eligible if:

    • You own the property (including landlords)

    • The property is in England or Wales

    • You are replacing an existing fossil fuel heating system

    • The property has a valid EPC

    • The EPC shows no outstanding loft or cavity wall insulation recommendations (unless exempt)

    BUS eligibility is not based on benefits, income, or health conditions.

  • All installations funded under BUS must be carried out by an MCS-certified installer.

    MCS (Microgeneration Certification Scheme) certification ensures:

    • The installer meets government technical standards

    • The system design is appropriate for the property

    • Consumer protections are in place

    Only MCS-certified installers can apply for BUS funding.

    Official MCS installer register:
    https://mcscertified.com/find-an-installer/

  • BUS is installer-led.

    This means:

    • Homeowners cannot apply directly

    • A BUS-registered, MCS-certified installer applies on your behalf

    • The grant is applied at installation, not paid to you separately

    The installer:

    • Confirms eligibility

    • Submits the BUS application

    • Claims the grant from Ofgem

    • Deducts the grant from your invoice

    Official installer guidance (Ofgem):
    https://www.ofgem.gov.uk/environmental-and-social-schemes/boiler-upgrade-scheme-bus/installers

  • Low-carbon heating installations funded under BUS are eligible for 0% VAT until at least March 2027.

    This applies to:

    • Heat pumps

    • Biomass boilers

    • Associated installation work

    This VAT relief is separate from the BUS grant and reduces overall costs further.

    Government VAT guidance:
    https://www.gov.uk/guidance/vat-on-energy-saving-materials

    1. Find an MCS-certified, BUS-registered installer

    2. Installer assesses your property

    3. Eligibility is confirmed

    4. Installer applies for the BUS grant

    5. Grant is deducted from the final cost

    Find a BUS installer (Ofgem):
    https://www.ofgem.gov.uk/environmental-and-social-schemes/boiler-upgrade-scheme-bus/installers

Where Support Now Sits

Great British Insulation Scheme (GBIS) has now closed, but national support has not disappeared. EC04 remains open until 31 December 2026 and the Boiler Upgrade Scheme remains open until 31 December 2027. Alongside these national routes, further support is being delivered through the Warm Homes Plan and local authority -led schemes.