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Home energy grants

You can apply for grants of up to £2,500 per building if you are installing approved systems to generate your own electricity. Producing clean, green energy in your home can help to reduce your carbon emissions and could also bring down your fuel bills.

What is microgeneration?

Microgeneration means when individuals, businesses and communities generate low carbon heat and power to meet their own needs. Microgeneration systems use a range of technologies like wind, solar and hydro power.

What is a microgeneration grant?

If you're a householder and want to install microgeneration technologies, you can apply for a grant to cover part (up to 50 per cent) of the installation cost. Currently, the maximum amount is £2,500 per property.

Grants are provided by the Department for Business, Innovation and Skills (BIS). They are delivered through the Energy Saving Trust (EST) as part of the Low Carbon Buildings Programme (LCBP) Phase 1.

Who is eligible for a grant?

To be eligible for a grant, you must:

  • make sure your home is energy efficient (see below for details)
  • choose an approved installer and product
  • speak to your local authority about planning requirements before applying for a grant

How much are the grants?

You can apply for funding for up to three different technologies in one building, and for as many as three different buildings. There is a maximum of £2,500 of funding available per building. The current grant levels for different technologies are:

Technology Maximum amount of grant
Solar photovoltaics (solar panels)
Maximum of £2,000 per kilowatt (kW) of installed capacity, subject to an overall maximum of £2,500 or 50 per cent of the relevant eligible costs, whichever is the lower
Wind turbines Maximum of £1,000 per kW of installed capacity, subject to an overall maximum of £2,500 or 30 per cent of the relevant eligible costs, whichever is the lower
Small hydro Maximum of £1,000 per kW of installed capacity, subject to an overall maximum of £2,500 or 30 per cent of the relevant eligible costs, whichever is the lower
Solar thermal hot water Overall maximum of £400 or 30 per cent of the relevant eligible costs, whichever is the lower
Ground source heat pumps Overall maximum of £1,200 or 30 per cent of the relevant eligible costs, whichever is the lower
Automated wood pellet fed room heaters/stoves Overall maximum of £600 or 20 per cent of the relevant eligible costs, whichever is the lower
Wood fuelled boiler systems Overall maximum of £1,500 or 30 per cent of the relevant eligible costs, whichever is the lower

What must I do before applying?

Before applying, you need to make sure you have:

  • insulated the whole of the loft of the property to meet current building regulations (eg 270 millimetres of loft insulation or suitable alternative)
  • installed cavity wall insulation (if you have cavity walls)
  • fitted low energy light bulbs in all appropriate light fittings
  • installed basic controls for your heating system to include a room thermostat and a programmer or timer

It's advisable to complete a home energy check to assess which measures are most suitable for your home. You can also call your local Energy Saving Trust advice centre on 0800 512 012 for guidance on energy efficiency measures and grants available in your area.

How does the process work?

Here’s a step-by-step guide to the process:

1. Check the energy efficiency of your home
Check that you have completed the energy efficiency measures required by the programme

2. Check if you need planning permission
Make sure you have obtained planning permission for your installation if necessary. Since spring 2008, most microgeneration installations which have little or no impact outside the property have not needed planning consent. Check the planning portal for more information.

3. Get a quote
You need to obtain a quote from an approved installer. The Microgeneration Certification scheme provides consumers with independent certification of microgeneration products and services and a route for complaints.

4. Make an application online
See the 'How to apply for a grant' section below.

5. Install the technology
After receiving a grant offer via email, order the equipment and begin installing the technology. The grant validity period varies by technology.

6. Make a claim
After you have completed the installation and paid the installer, you can submit the claim documents to the Energy Saving Trust. The grant claim is checked and, if in order, the grant will be issued within 25 working days of receipt of all the documentation.

How to apply for a grant

You can apply for a grant online through the Low Carbon Buildings Programme. If you apply online you will get an instant decision on whether a grant application has been successful or not.

Other rewards for micogeneration

You can also access other rewards for generating electricity:

  • you can receive Renewable Obligation Certificates (ROCs), or other green energy certificates, which entitle you to money for generating energy 
  • you may be able to claim other grants and should contact your local council or Regional Development Agency 
  • ask your electricity supplier for information on selling surplus electricity to the national grid 
  • some banks and other organisations are offering ‘green loans’ to help with installation costs

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