UK Government Energy Efficiency Grants in 2025

As energy prices continue to fluctuate and the UK intensifies its push toward net-zero, 2025 has brought a new wave of government energy efficiency grants aimed at helping homeowners upgrade their properties. Whether you’re hoping to reduce your energy bills, future-proof your home, or simply live more sustainably, these grants offer financial support to make those goals more achievable.

In this guide, we’ll cover the key grants available in 2025 and how smart heating solutions like Wiser can help you get the most from them.

Why Energy Efficiency Matters in 2025

Residential buildings contribute substantially to the UK's energy consumption and carbon emissions. To address this, the government has introduced several incentive schemes supporting homeowners in improving energy efficiency. From insulation and heat pumps to smart heating systems, these grants make sustainable living more accessible and affordable.

Key UK Energy Efficiency Grants Available in 2025

1. Home Upgrade Grant (HUG 2)

The Home Upgrade Grant Phase 2 (HUG 2) targets low-income households in England, particularly those off the gas grid. With £630 million allocated for delivery between September 2023 and March 2025, HUG 2 funds:

• Loft, cavity wall, and solid wall insulation
• Installation of low-carbon heating systems (e.g., heat pumps)
• Solar PV panels and heating controls

To qualify, your property must have an Energy Performance Certificate (EPC) rating of D or below, and your household must fall below a certain income threshold or receive qualifying benefits. You can learn more on how to apply for this scheme here.

2. Boiler Upgrade Scheme (BUS)

Running until 31 December 2027, the Boiler Upgrade Scheme supports the transition to low-carbon heating technologies by offering:

• £7,500 towards the cost of an air source or ground source heat pump
• £5,000 for a biomass boiler (in off-gas grid areas only)

Homeowners in England and Wales with eligible homes (typically with an EPC rating of A–D and no outstanding insulation recommendations) can apply through an MCS-certified installer, who applies on your behalf.

3. Energy Company Obligation (ECO4)

The ECO4 scheme is a government initiative obligating large energy suppliers to help low-income and vulnerable households improve energy efficiency. Running until March 2026, ECO4 offers fully or partially funded upgrades including:

• Home insulation (loft, cavity wall, underfloor)
• Boiler replacements and first-time central heating
• Renewable heating systems (heat pumps)

ECO4 targets properties with poor EPC ratings (typically E, F or G) and residents receiving specific benefits. Installations are carried out by ECO-approved contractors, and applications can be made via your energy supplier or local authority. Explore more and learn more about this scheme through Ofgem.

4. Industrial Energy Transformation Fund (IETF) – For Businesses

The Industrial Energy Transformation Fund (IETF) supports UK manufacturing businesses in reducing their carbon emissions and energy bills through capital investments in energy efficiency and low-carbon technologies.

Currently in Phase 3, which is active in 2025, the IETF provides match funding for:

• Energy efficiency technologies, such as heat recovery systems and insulation
• Industrial process electrification
• Low-carbon heating systems

Eligible businesses include manufacturers, data centres, and other high-energy users. Projects must typically demonstrate measurable energy or carbon savings. Grants range from £100,000 to several million pounds, depending on the project size and impact.

Take Control of Your Energy Efficiency with Wiser

Whether you're a homeowner applying for grants like HUG 2 or BUS, or a business investing through the Industrial Energy Transformation Fund, integrating smart technology can take your energy savings even further.

Wiser smart heating systems allow you to:

• Control heating room-by-room with smart radiator valves
• Optimise your schedule to avoid heating empty spaces
• Access energy insights to track and reduce consumption
• Lower your monthly energy bills by up to 30% while reducing carbon emissions

By making your heating smarter, you’re not just improving comfort, you’re making every unit of energy count. Explore the full range of Wiser smart heating products today and find out how much you could save.