With energy bills at an all time high, you may be looking into renewable energy options for your home. Here is an overview of all the possible renewable energy grants and funding options
Energy Company Obligation (ECO4) Scheme
ECO4 is the latest phase of the ongoing government scheme to support low-income households by funding energy-efficient upgrades to homes, It requires that large energy companies (such as EDF, British Gas, Scottish Power etc.) pay to have energy-saving measures installed in people’s homes.
ECO4 – install solar photovoltaics (PV) in all electrically heated homes. If Biomass machine or District Heat Network are ruled out.
Who is eligible for the scheme?
ECO4 is available to:
- Homeowners, landlords and private tenants
- People receiving income-related benefits
- Properties with inefficient electric heating, within the D-G energy efficiency band.
Qualifying benefits for the ECO4 scheme include:
- Jobseekers Allowance (JSA), income based
- Employment and Support Allowance (ESA), income related
- Housing Benefit
- Pension Credit
- Income Support (IS)
- Universal Credit (UC)
- Work Tax Credit (WTC)
- Warm House Discount Scheme Rebate
- Child Tax Credits
- Child Benefit, depending on income threshold
The LA Flex Scheme
If you are not receiving any benefits, you may still qualify for funding through the LA Flex Scheme. This is an extension of ECO4
Who is eligible for the scheme?
Although criteria can vary between councils, LA Flex is targeted at two groups of people who are on low incomes:
- Those that are in fuel poverty (households spending at least 10% of their net income on heating their home)
- Those who are more vulnerable and at risk during cold weather including:
- People with cardiovascular conditions
- People with respiratory conditions
- People with disabilities
- People with mental health conditions or learning disabilities that lowers the individual’s ability to look after themselves (including those with dementia)
- Older people (age 65 and over)
- Households with young children (0-5)
- Pregnant women
The Green Deal Scheme
The Green Deal helps you make energy-saving improvements to your home through a loan which you’ll have to pay back. One of the most accessible renewable energy grants, any household with an electricity meter (including prepayment meters) can use the scheme, as long as both the landlord and the tenant agree to the improvements if the building is rented. You must get your property assessed by a qualified Green Deal assessor to use the Green Deal, who will visit your home and talk to you about your property and your energy use to help decide if you could benefit from Green Deal improvements, such as solar photovoltaic (PV) panels. You will then receive a Green Deal advice report which is valid for 10 years, or until you make changes or energy saving improvements to the property, for example you build an extension or change the windows.
A finance plan can then be offered to you by a Green Deal provider for improvements recommended in your Green Deal assessment, which will be based on what you’ll be expected to save on your energy bills. The annual repayments on the loan should therefore not be more than the savings you might make on your energy bills.
The loan differs to a usual loan, as it will be paid back through a charge added to your electricity bill. This is because the Green Deal stays with the property. If you decide to move, you no longer benefit from the improvements and therefore you stop paying for them.
The Smart Export Guarantee (SEG) Scheme
Instead of offering renewable energy grants directly; the SEG scheme delivers a solution to reimburse your investment. The scheme requires energy suppliers with over 150,000 customers to pay homeowners for unused solar-generated electricity, feeding any unused electricity from your solar photovoltaic (PV) panels into the National Grid. Under SEG, you will get paid for every unit of electricity that you give back to the grid.
Who is eligible for the scheme?
- You must install a renewable electricity-generating system (such as solar panels)
- You will need a smart reader, since you’ll need to provide half-hourly export readings
- Your installation and installer should be certified through the Microgeneration Certification Scheme (MCS)
Pay 0% VAT on ‘energy-saving products’ until March 2027
VAT on ‘energy-saving products’ will be set at 0%, a significant reduction from the previous rate of 5% and the typical charge of 20%. Eligible parties will be reliant on installers and suppliers to qualify for this reduction. Products can not be bought or installed DIY.
If the cost of the products (not including VAT) is 60% or less of the total cost of the installation (not including VAT), you’ll pay 5% on everything. If the products cost more than 60% of the total cost of installation, homeowners will pay 5% VAT on the labour and the standard rate of 20% for the products.
Sophie Ben-Tovim
19/06/2023
