Home Energy Grants UK 2026: Every Scheme Landlords Can Access

The landscape of energy efficiency grants for UK landlords has shifted significantly heading into 2026. Some schemes have expanded, one has closed entirely, and a new programme has launched. If you are a private landlord working towards the October 2030 EPC Band C deadline, understanding which grants are still available — and which are not — could save you thousands of pounds.

This guide covers every funding scheme that landlords in England and Wales can access in 2026, how to combine them, and how grant spending interacts with the £10,000 cost cap.

The grant landscape in 2026: what’s open, what’s closed

Here is the current status of every major energy efficiency funding scheme relevant to landlords, as of March 2026:

Boiler Upgrade Scheme (BUS)

The BUS is the single most valuable grant available to landlords right now. It provides a £7,500 voucher towards replacing a fossil fuel heating system with a low-carbon alternative.

• What it funds: Air source heat pumps (£7,500), ground source heat pumps (£7,500) or biomass boilers (£5,000, rural off-grid properties only)
• Landlord eligibility: Yes — private landlords with buy-to-let properties are fully eligible
• How to apply: Through an MCS-certified installer, who handles the Ofgem application on your behalf. You do not apply directly.
• Requirements: The property must have a valid EPC, must currently have a fossil fuel heating system, and must not have outstanding EPC recommendations for loft or cavity wall insulation (install these first)
• EPC impact: An air source heat pump typically adds 10–20 SAP points, often enough to jump from Band D to Band C or even Band B
• Scheme duration: Funded through to March 2028

For the full application process, eligibility details and catches, see our complete BUS guide for landlords.

ECO4 (Energy Company Obligation)

ECO4 is funded by large energy suppliers and delivered through approved installers. It can cover insulation, heating upgrades and sometimes glazing at no cost to the landlord — but eligibility depends on the tenant, not you.

• What it funds: Loft insulation, cavity wall insulation, solid wall insulation, underfloor insulation, heating system upgrades, heating controls and (in some cases) double glazing
• Eligibility: The tenant must receive a qualifying benefit (Universal Credit, Pension Credit, Housing Benefit, income-based JSA/ESA, Child Tax Credit under £16,190) or be referred through the local authority’s LA Flex route
• How to apply: Through an ECO-approved installer, not directly. The installer verifies eligibility, surveys the property and arranges funding from an obligated energy supplier.
• Scheme end date: 31 December 2026 — no new applications after this date

ECO4 is particularly valuable because it does not count towards your £10,000 cost cap. The improvements are funded by energy companies, not by you, so your personal compliance budget remains untouched. For full details, see our ECO4 guide for landlords.

Warm Homes: Local Grant

This is the newest funding stream, introduced as part of the Warm Homes Plan in January 2026. It is delivered through local authorities and specifically targets landlord compliance:

• First property: 100% of improvement costs funded — fully free for the landlord
• Subsequent properties: 50% of improvement costs funded, with the landlord covering the remainder
• Eligible improvements: Insulation, heating upgrades, glazing and ventilation — similar to ECO4
• How to access: Contact your local authority’s housing or energy efficiency team. Availability and application processes vary by council.

The 100% funding for the first property is a significant incentive, particularly for landlords with just one or two rental properties. If you own a single buy-to-let, you could potentially achieve Band C compliance at zero personal cost through this scheme alone.

For portfolio landlords, the 50% contribution on subsequent properties still represents a substantial saving. On a typical £6,000 package of improvements, you would pay £3,000 — and only that £3,000 counts towards the £10,000 cost cap.

Great British Insulation Scheme (GBIS)

GBIS closed to new applications in January 2026. If you have an existing application in progress, it will be honoured, but no new properties can be submitted to the scheme.

GBIS was designed to deliver single insulation measures (primarily cavity wall insulation) to homes in lower council tax bands. It ran alongside ECO4 but with broader eligibility. Its closure means landlords who were relying on GBIS for insulation funding need to look to ECO4, the Warm Homes: Local Grant or self-funding as alternatives.

Local authority schemes

Many local councils operate their own energy efficiency grant programmes, often funded through central government allocations or devolution deals. These vary significantly by area:

• Some councils offer direct grants for insulation or heating improvements
• Others provide interest-free loans or cashback schemes
• Eligibility criteria, funding levels and available measures differ from council to council
• Some schemes are landlord-specific; others cover all property owners

The best way to find out what your local authority offers is to visit their website and search for “energy efficiency grants” or “home improvement grants”, or contact their housing team directly. The government’s Simple Energy Advice service can also help identify local schemes.

VAT reductions on energy-saving materials

Since April 2022, the VAT rate on the supply and installation of qualifying energy-saving materials has been reduced to 0% for residential properties. This applies until at least March 2027, at which point it is scheduled to revert to 5% (the previous reduced rate, down from the standard 20%).

Qualifying materials include:

• Insulation (all types: loft, cavity wall, solid wall, floor)
• Solar panels
• Heat pumps (air source and ground source)
• Draught proofing
• Heating controls and thermostats
• Hot water cylinder insulation
• Double or triple glazing (when replacing single glazing)

The 0% rate applies regardless of whether you use a grant scheme or self-fund the improvements. It effectively gives landlords a 20% discount on the normal-rate price of materials and installation. Make sure your installer is applying the correct VAT rate — we have seen cases where contractors charge 20% VAT on work that should be zero-rated.

How grants interact with the £10,000 cost cap

This is one of the most misunderstood aspects of the compliance framework. The £10,000 cost cap measures your personal out-of-pocket expenditure on qualifying improvements. Government grants are not your money, so they do not count:

Example: You install loft insulation for £400 (self-funded), cavity wall insulation through ECO4 (free), and a heat pump using the BUS grant where you pay £5,700 after the £7,500 voucher. Your total spend towards the cap: £400 + £5,700 = £6,100. You still have £3,900 remaining under the cap for further improvements if needed.

How to find grants for your specific property

With multiple schemes running in parallel, the optimal strategy depends on your property and your tenant’s circumstances. Here is a step-by-step approach:

• Step 1: Check your property’s EPC to see your current band, SAP score and recommended improvements
• Step 2: Check tenant eligibility for ECO4. If your tenant receives qualifying benefits, this should be your first call — it is fully funded and does not consume your cost cap.
• Step 3: Contact your local authority about the Warm Homes: Local Grant. If your first property qualifies for 100% funding, this is the next best option.
• Step 4: If the property has a gas boiler and you are considering a heat pump, apply for the BUS grant through an MCS-certified installer.
• Step 5: Check for local authority schemes specific to your area.
• Step 6: For any remaining improvements not covered by grants, self-fund using the 0% VAT benefit and track your spending against the £10,000 cap.
• Step 7: After all improvements are complete, commission a new EPC assessment to capture the gains on your certificate.

For properties with gas boilers specifically, the combination of ECO4 (for insulation) and BUS (for a heat pump) can deliver a comprehensive upgrade at minimal personal cost. Across our pilot data, Bristol has 104,000 gas boiler properties, Manchester has 125,000 and Leeds has 202,000 — hundreds of thousands of properties that could benefit from this strategy.