GUIDE | ENERGY & HOME
TL;DR
The Warm Homes Plan is the government's £15 billion programme to upgrade UK homes with insulation, solar panels, heat pumps and batteries by 2030. Several schemes are open now. Low-income households can get free upgrades through ECO4 (open until December 2026) and the Warm Homes Local Grant. The Boiler Upgrade Scheme heat pump grant is open to all homeowners with no means test.
|
Key Facts
|
What the Warm Homes Plan is
The Warm Homes Plan, published in January 2026, is the government's framework for improving the energy efficiency of UK homes. It brings together several existing funding streams and new programmes under one policy with the stated aim of upgrading up to 5 million homes with solar panels, insulation, heat pumps and batteries by 2030.
The plan is not a single scheme you apply to directly. It is a collection of grants, loans and regulations. The part that applies to any individual household depends on income, tenure, property type and the specific technology being considered.
What is available right now
| Scheme | Who qualifies | What it covers | Status |
|---|---|---|---|
| ECO4 | Low income, qualifying benefits, bands A-D EPC | Insulation, heat pumps, solar panels - free | Open until December 2026 |
| Boiler Upgrade Scheme (BUS) | All homeowners in England and Wales - no means test | £7,500 grant toward heat pump installation | Open now |
| Warm Homes Local Grant | Low income households | Energy efficiency upgrades - successor to ECO4 | Rolling out from 2026 |
| Home Energy Scotland | Scotland only - various eligibility | Grants and interest-free loans | Open - separate from England/Wales schemes |
| Nest programme (Wales) | Wales only - low income | Heating and insulation upgrades | Open |
| Zero-rated VAT on solar | All homeowners | Solar panels, batteries, installation at 0% VAT | In force now |
| Warm Homes Fund loans | All homeowners | Low/zero interest loans for solar, batteries, heat pumps | Details expected later 2026 |
ECO4 - free upgrades for low-income households
Energy Company Obligation 4 (ECO4) is the current scheme through which energy companies fund free home upgrades for low-income and fuel-poor households. It was extended to December 2026, having previously been due to end in March 2026. There will be no ECO5 - the Warm Homes Local Grant is the intended successor.
ECO4 eligibility is based on receiving qualifying means-tested benefits (such as Universal Credit, Pension Credit, or income-based JSA/ESA) and living in a property with an EPC rating of band D or lower. Eligible measures include loft insulation, cavity wall insulation, solid wall insulation, heat pumps, and solar panels.
To check eligibility and find an installer, visit GOV.UK or contact your energy supplier. Suppliers are obligated to fund ECO4 upgrades as part of their regulatory obligations and there is no charge to qualifying households.
Boiler Upgrade Scheme - £7,500 heat pump grant
The Boiler Upgrade Scheme (BUS) provides a £7,500 grant toward the installation of an air source heat pump in a property in England or Wales. There is no income test - any homeowner can apply regardless of income. The grant is paid directly to the installer, who deducts it from the quoted price.
An important change from April 2026 removed the previous requirement that a property must have insulation recommendations on its Energy Performance Certificate (EPC) before being eligible for the BUS. This change opened the scheme to a significantly wider group of homeowners. Properties with poor insulation can now access the heat pump grant even if the EPC recommends further insulation work first.
The grant applies to properties in England and Wales. Scotland has separate schemes through Home Energy Scotland.
Solar panels and batteries
Solar panel installation is zero-rated for VAT. On a typical 4kW solar and battery system costing around £12,000, this represents a saving of approximately £2,000 compared to the standard 20% rate. The zero rating applies to solar panels, battery storage systems, and their installation.
The government has confirmed a £5 billion Warm Homes Fund that will provide low or zero interest loans for solar panels, batteries and heat pumps for homeowners who do not qualify for free grants. The details of interest rates, loan terms and how to apply are expected to be confirmed later in 2026.
Privately rented properties
The Warm Homes Plan also introduces new minimum energy efficiency standards for privately rented properties. Landlords will be required to bring properties up to a minimum EPC band C by 2030. The government confirmed these minimum standards in the plan alongside the wider home upgrade programme. Tenants in rented properties with poor energy efficiency should be aware that their landlord will face requirements to upgrade the property over the coming years.
|
Disclaimer: This article is for general information only and does not constitute financial, legal or employment advice. Kaeltripton.com is an independent editorial publisher and is not regulated by the FCA or TPR. Always verify information at primary sources and consult a qualified adviser before making decisions. |
Frequently asked questions
How do I apply for ECO4 free upgrades?
Contact your energy supplier directly - all major suppliers are obligated to fund ECO4 measures. Alternatively, check your eligibility at the Great British Insulation Scheme or ECO4 page on GOV.UK. You can also contact local authorities and housing charities who can assist with applications.
Can I get the Boiler Upgrade Scheme grant for a gas boiler?
No. The BUS covers air source heat pumps, ground source heat pumps, and biomass boilers in some cases. It does not fund gas boiler replacements. The scheme is specifically designed to support the switch from gas heating to low-carbon alternatives.
What is the Future Homes Standard?
The Future Homes Standard requires all new homes built in England to be highly energy efficient, with very low carbon emissions - initially implemented in early 2026. It effectively means new homes must have solar panels as standard and cannot be built with gas boilers. It applies to new builds only, not existing properties.
Where can I find official information on all available schemes?
The central source is GOV.UK's energy efficiency and fuel poverty pages. The full Warm Homes Plan is published at GOV.UK - Warm Homes Plan. For the Boiler Upgrade Scheme, see the dedicated BUS page on GOV.UK.
|
Primary Sources |
