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Grants for Home Energy Efficiency Measures

The government’s Energy Review 2010 reaffirms the existing commitment to eliminate “fuel poverty” which is defined as the need to spend more than 10% of a family’s disposable income on energy to maintain a healthy living environment. To that end, families that can claim certain means-tested benefits may be eligible to receive 100% grants for insulation, lighting or more efficient heating systems.

Grants for heating and insulation improvements up to £6000 are available for qualifying households from the Warm Front scheme in England. For details and an online application form click this link:

Similar schemes operate in Wales, Scotland and Northern Ireland which can also be accessed via the link above.

The boiler scrappage scheme is now closed.

The Green Project
provides free and grant assisted loft and cavity wall insulation to all homeowners and private tenants. Call free on 0800 093 40 50 for more information or visit

In addition, householders, tenants and homeowners, over 70 years of age can get cavity wall and loft insulation free. Contact your local energy efficiency advice centres eeacs for information.

Landlord's Energy Saving Allowance

Running until 1 April 2015, landlords can claim tax allowances on up to £1,500 per year spent on energy saving improvements on UK properties let for residential use.

National Grants for Domestic, Community and Business Renewables Projects

As part of the government’s cost cutting measures the Low Carbon Buildings Programme has closed.

Renewable Heat Incentive Scheme

The latest grant regime from central government is the Renewable Heat Incentive (RHI) due to be implemented in full in 2012. The Renewable Heat Incentive for non-domestic generators opened for applications on Monday 28 November 2011.

Meanwhile an interim measure, the Renewable Heat Premium Payment scheme (RHPP) is in place and accepting applications for financial assistance. Both the RHI and RHPP are being administered by the Energy Saving Trust.

The Feed-In Tariffs Scheme (FITs)

Through the use of FITs, DECC hopes to encourage deployment of additional small-scale (less than 5MW) low-carbon electricity generation, particularly by organisations, businesses, communities and individuals that have not traditionally engaged in the electricity market.
This will allow many people to invest in small-scale low-carbon electricity, in return for a guaranteed payment from an electricity supplier of their choice for the electricity they generate and use as well as a guaranteed payment for unused surplus electricity they export back to the grid. FITs currently covers wind, PV, hydro, anaerobic digestion and microCHP generation.

The FITs scheme is currently under review (as at November 2011)
Changes to the payment rates may have an effect on schemes operated by the major power companies and others to install domestic PV systems at no upfront cost.

The Green Deal

The Government is establishing a framework to enable private firms to offer consumers energy efficiency improvements to their homes, community spaces and businesses at no upfront cost, and to recoup payments through a charge in instalments on the energy bill.
For the latest news on this scheme see:

Local Grants for Renewables Projects

Many local grants are available. We recommend that you check with your local council or library for grant availability in your area.

Affordable Energy offers homeowners and landlords grants for heating, insulation and solar heating.

The Scottish Community and Householder Renewables Initiative (SCHRI) provides funding for most household/community renewables technologies as well as funding for connections to the Lerwick District Heating Network. Information and application forms can be found at the Energy Savings Trust website:

Community Energy Scotland provide grant funding and advice on small-scale renewable energy to community groups throughout the Highlands and Islands. It also holds a grant and investment fund to help communities develop larger-scale projects to generate and sell energy, bringing revenue to their community. CES also provides renewable energy advice to applicants to Big Lottery Fund Scotland's Growing Community Assets (GCA) funding scheme.

E.ON funding for Community and Charitable Projects

The E.ON Sustainable Energy Fund no longer gives direct grants. It has changed to delivering this support through charities such as Age UK and through community partners and local authorities.

Financial assistance for Commercial Renewables Projects

Renewable Heat Incentive

The Renewable Heat Incentive (RHI) for non-domestic generators opened for applications on Monday 28 November 2011.

Renewables Obligation (RO)

The RO is the main support mechanism for renewable electricity projects in the UK.
It places an obligation on UK electricity suppliers to source an increasing proportion of electricity they supply to customers from renewable sources. The scheme is operated by Ofgem.

Enhanced Capital Allowance Scheme

Enhanced Capital Allowances (ECAs) enable a business to claim 100% first-year capital allowances on their spending on qualifying plant and machinery. There are three schemes for ECAs:

  • Energy-saving plant and machinery
  • Low carbon dioxide emission cars and natural gas and hydrogen refueling infrastructure
  • Water conservation plant and machinery

Businesses can write off the whole of the capital cost of their investment in these technologies against their taxable profits of the period during which they make the investment. This can deliver a helpful cash flow boost and a shortened payback period.

Details of the ECA Low Emission Transport stream can be found at

Included in the ECA Water Conservation Stream are low water use showers and toilets and Rainwater Harvesting. Information can be found at:

Energy Efficiency Financing for Industry

The scheme providing unsecured interest-free Energy-Efficiency Loans has been replaced by a financing scheme run by the Carbon Trust in association with Siemens Financial Services to fund projects such as lighting, boilers or insulation. Details of the scheme can be found at:

Shell Springboard

Annually awards grants of up to £40,000 for UK businesses who submit the most compelling plans for a product or service which helps combat climate change.

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