Home energyEnergy and green upgrades
UK energy grants in 2026 explained: BUS, ECO4, GBIS and 0% VAT
The main UK energy support in 2026 is the Boiler Upgrade Scheme (7,500 pounds for a heat pump, rising to 9,000 pounds off the gas grid), means-tested ECO4 funding, and 0 percent VAT on qualifying energy-saving materials until 31 March 2027. The Great British Insulation Scheme closed on 31 March 2026 and is not accepting new applications. This guide explains which applies to you and how to claim.
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What it is
There is no single "energy grant" in the UK. Instead there are several distinct schemes, each with its own rules, and they can sometimes be combined. This page is the hub that explains each one in plain English and points you to the right installer page.
Getting the scheme right matters, because some are open to everyone (like 0 percent VAT), some are means-tested (like ECO4), and some are payments rather than grants (like export tariffs).
How it works
The Boiler Upgrade Scheme gives 7,500 pounds towards an air source or ground source heat pump in England and Wales, rising to 9,000 pounds if you are off the gas grid and replacing oil or LPG, applied by your MCS-certified installer.
ECO4 is means-tested, delivered through obligated energy suppliers and TrustMark-registered installers, and focuses on insulation and efficiency in eligible homes. It now runs to 31 December 2026. The Great British Insulation Scheme closed on 31 March 2026 and is no longer taking applications.
0 percent VAT applies to qualifying energy-saving materials, including solar, batteries, heat pumps and insulation, until 31 March 2027, after which it is set to revert to 5 percent.
Who it is for
- Everyone installing qualifying measures before 31 March 2027 benefits from 0 percent VAT.
- Homeowners replacing a fossil-fuel boiler in England and Wales can use the Boiler Upgrade Scheme.
- Lower-income and benefit-eligible households should check ECO4 for insulation and efficiency funding; GBIS is closed.
Grants and savings
- Boiler Upgrade Scheme: 7,500 pounds towards a heat pump, 9,000 pounds off the gas grid replacing oil or LPG (gov.uk).
- 0 percent0 percent VAT on qualifying energy-saving materials until 31 March 2027, then set to revert to 5 percent (gov.uk).
- ECO4: means-tested funding for insulation and efficiency in eligible homes, running to 31 December 2026 (gov.uk).
- Smart Export Guarantee: payment for surplus solar electricity exported to the grid (Ofgem).
UK energy support schemes in 2026 at a glance
| Scheme | What it gives | Who qualifies |
|---|---|---|
| Boiler Upgrade Scheme | 7,500 to 9,000 pounds off a heat pump | Homeowners in England and Wales, MCS install |
| 0% VAT | No VAT on qualifying measures to 31 Mar 2027 | Everyone installing qualifying measures |
| ECO4 | Funded insulation and efficiency measures, to 31 Dec 2026 | Means-tested, eligible lower-income homes |
| Great British Insulation Scheme | Closed 31 Mar 2026, no longer taking applications | Was means-tested, broader eligibility |
| Smart Export Guarantee | Payment for exported solar electricity | Homes with an MCS-certified solar system |
How to choose an installer
- Government scheme work must be done by a TrustMark-registered installer, and heat pump or solar work by an MCS-certified one.
- Be wary of cold callers offering "free" grants; genuine schemes are means-tested and delivered through approved installers.
- Always confirm in writing which scheme funds the work and what you pay if a grant is not approved.
Frequently asked questions
Can I combine more than one energy grant?
Sometimes. For example 0 percent VAT applies alongside the Boiler Upgrade Scheme on a qualifying heat pump. Means-tested schemes like ECO4 have their own rules. Ask your installer which schemes your work qualifies for and how they stack.
Which energy grant is open to everyone?
The 0 percent VAT relief on qualifying energy-saving materials is not means-tested, so any homeowner installing eligible measures before 31 March 2027 benefits. The Boiler Upgrade Scheme is open to eligible homeowners in England and Wales; ECO4 is means-tested.
When do these energy grants end?
The 0 percent VAT rate applies until 31 March 2027, then is set to revert to 5 percent. ECO4 has been extended and now runs to 31 December 2026. The Great British Insulation Scheme closed as planned on 31 March 2026 and is not being extended. Always check the current end dates on gov.uk before relying on a scheme.
Sources
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Editor, VettedHome
Adam leads VettedHome's editorial coverage of UK home services. He is the founder and managing director of Muswell Rose, the commercial strategy and modern systems business behind a portfolio of UK information sites, and he researches and writes the plain-English guides that help homeowners choose between installers and trades, drawing on the standards set by the relevant bodies for each job, such as Gas Safe Register, NICEIC, MCS, TrustMark and the Property Care Association. He is clear about what to check before any work starts.
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