Energy efficiency grants and loans

Homeowners can apply for a grant to cover part of the cost of replacing fossil fuel heating systems (gas boilers) with air source or ground source heat pumps or biomass boilers as part of the government Boiler Upgrade Scheme.

You may be eligible for the scheme if you:

Own the property you’re applying for (including if it’s a second home, or a property you rent out to tenants)

Have installed (or plan to install) your new heating system on or after 1 April 2022

Are replacing fossil fuel heating systems (such as oil, gas or electric)

The grant covers:

£5,000 off the cost and installation of an air source heat pump

£5,000 off the cost and installation of a biomass boiler

£6,000 off the cost and installation of a ground source heat pump

Your selected installer will apply to Ofgem for this grant on your behalf. For additional information on the scheme and details on how to find a certified installer please visit our boiler upgrade scheme page. We advise that you take professional advice on the suitability of installing an air source heat pump, ground source heat pump or biomass boiler at your property.

The Energy Company Obligation is an obligation on energy suppliers to deliver energy efficiency and heating measures to the homes of low-income residents living in the least energy efficient homes.

Improvements covered by the scheme include:

Insulation upgrades – such as loft insulation, cavity wall insulation and solid wall insulation

Draft proofing

Improved heating controls

Installation of first time central heating

You may be eligible for the scheme if you:

Receive certain mean tested benefits

Own your own property or are a landlord

Your property classed as energy inefficient

You can apply for the ECO4 scheme through an ECO supplier listed on the Ofgem website: ECO supplier contact details | Ofgem or by contacting a TrustMark registered tradesperson. Installers under the ECO scheme must be TrustMark accredited and will have a registration number.

For additional information on this scheme and how to apply please visit our webpage on energy company obligation.

This scheme is a loan, which allows you to spread the cost of the improvements over a period of between 10 and 25 years. Green Deal loans differ from standard loans because the repayments are added to your electricity bill.

Improvements covered by the scheme include:

Insulation – such as loft insulation, cavity wall insulation and solid wall insulation

Draught proofing

Double glazing

Renewable energy generation, such as solar panels or heat pumps

Any household with an electricity meter (including prepayment meters) in England, Scotland or Wales can use the scheme. You can apply for the scheme through a Green Deal approved provider.

The DraughtBusters draught proofing service is available to people living in energy poverty, families with young children, the elderly and people under debt management. They might be able to help others too if you make contact.

If you’d like to enquire about DraughtBusters helping you draught proof your home, please email ReadingDraughtBusters@gmail.com.

If you would like to be kept up to date with any future energy funding schemes that become available, please email your contact details to energyfunding@reading.gov.uk or call us on 0118 937 3787.