A Complete Guide to Government Energy Grants in 2026

Overview of Available Grants

The UK government offers several grant schemes to help homeowners improve the energy efficiency of their properties. These programmes can fund insulation, heating upgrades, solar panels, and heat pump installations — often at no cost to eligible households. With energy prices remaining high and net zero targets driving policy, 2026 is an excellent time to take advantage of the funding available.

The main schemes currently running are the Energy Company Obligation (ECO4), the Great British Insulation Scheme (GBIS), the Boiler Upgrade Scheme (BUS), and the Home Upgrade Grant Phase 2 (HUG2). Each has different eligibility criteria, coverage, and available measures. Understanding which schemes you qualify for can help you access thousands of pounds in free home improvements.

ECO4: The Energy Company Obligation

ECO4 is the largest and most comprehensive of the government energy grant schemes. It requires major energy suppliers to fund energy efficiency improvements in eligible homes across England, Scotland, and Wales. The scheme takes a whole-house approach, meaning your property could receive multiple measures — such as insulation, a new heating system, and renewable technology — in a single package worth over £10,000.

To qualify for ECO4, you generally need to receive qualifying benefits such as Universal Credit, Pension Credit, or Child Tax Credit, and live in a property rated EPC D, E, F, or G. The scheme is scheduled to run until March 2026, so time is limited. If you think you may be eligible, it is worth applying as soon as possible before funding is fully allocated.

GBIS: The Great British Insulation Scheme

Formerly known as ECO+, the Great British Insulation Scheme focuses specifically on insulation measures for homes with poor energy ratings. What makes GBIS particularly accessible is that you do not necessarily need to be on benefits to qualify. Homeowners in Council Tax bands A to D with properties rated EPC D or below can apply regardless of their income.

GBIS typically funds single insulation measures such as loft insulation, cavity wall insulation, or room-in-roof insulation. The installation is usually completed within one to three days, making it one of the quickest routes to improving your home's energy efficiency and reducing heating bills.

BUS: The Boiler Upgrade Scheme

The Boiler Upgrade Scheme offers upfront grants of up to £7,500 towards replacing a fossil fuel heating system with an air source or ground source heat pump. Available in England and Wales, BUS is administered by Ofgem and has been extended to run until March 2028. Unlike ECO4, there is no income or benefits requirement — any homeowner with a valid EPC can apply, provided the property meets the technical criteria.

To qualify, your property must have a valid EPC with no outstanding recommendations for loft or cavity wall insulation. If insulation is recommended, you should address this first — potentially through ECO4 or GBIS — before applying for the heat pump grant. The grant is applied directly to your installer's invoice, so you only pay the remaining balance.

HUG2: Home Upgrade Grant Phase 2

HUG2 is specifically designed for off-gas-grid homes in England. If your property is not connected to the mains gas network and you rely on oil, LPG, electric, or solid fuel heating, HUG2 could provide up to £25,000 in funding for a comprehensive package of energy improvements. This makes it one of the most generous schemes available, covering everything from insulation to heat pumps and solar panels.

Eligibility is based on household income (below £31,000) or receipt of qualifying benefits, and your property must have an EPC rating of D or below. HUG2 is delivered through local authority consortia, so availability depends on your area. Not all councils participate, but entering your postcode on our eligibility checker will quickly tell you if funding is available where you live.

How to Apply

The application process varies by scheme, but in most cases you can start by entering your postcode to check eligibility. For ECO4 and GBIS, a qualified energy assessor will visit your property to determine which measures are suitable. For BUS, you will need to choose an MCS-certified heat pump installer who applies to Ofgem on your behalf. For HUG2, your local authority manages the process from assessment to installation.

Many households qualify for more than one scheme, and it is often possible to combine funding. For example, you might receive insulation through GBIS and a heat pump through BUS. A good starting point is to check your eligibility with EcoEnergy247 — we can help identify which grants apply to your property and guide you through the application process at no cost.

Eligibility at a Glance

• ECO4 — requires qualifying benefits and EPC D-G; covers multiple measures; England, Scotland & Wales
• GBIS — open to Council Tax bands A-D with EPC D-G regardless of income; focuses on insulation; England, Scotland & Wales
• BUS — no income requirement; EPC needed with no outstanding insulation recommendations; up to £7,500 for heat pumps; England & Wales
• HUG2 — off-gas-grid homes only; income below £31,000 or qualifying benefits; up to £25,000; England only