Net Zero, homeowner and landlord funding for 2025

As the UK intensifies its efforts toward sustainability, a variety of energy grants, landlord funding schemes, and retrofit incentives are available in 2025 to assist homeowners, landlords, and tenants in enhancing energy efficiency. These funding opportunities aim to reduce carbon emissions, lower energy bills, and support the government’s net-zero objectives.

In this guide, we’ll explore the latest energy grants in the UK, key funding schemes for landlords, and retrofit incentives available in 2025.

Energy Grants in the UK: What’s Available in 2025?

With escalating energy costs and a growing emphasis on reducing carbon footprints, the UK government continues to support households and businesses through green energy grants. Here are some of the key schemes available this year:

1. Warm Homes: Local Grant (WH:LG) 2025

• What is it? A government-funded scheme delivered by local authorities to provide energy performance upgrades and low-carbon heating to low-income households in England.
• Who can apply? Low-income homeowners and private rental tenants with properties having an Energy Performance Certificate (EPC) rating between D and G.
• Funding available: Up to £15,000 per property for energy performance improvements such as insulation and solar panels, with an additional £15,000 available for low-carbon heating installations like heat pumps.

2. Boiler Upgrade Scheme (BUS) 2025

• What is it? A grant to replace old gas or oil boilers with low-carbon heating solutions.
• Who can apply? Homeowners and landlords in England and Wales.
• Funding available: Up to £7,500 towards the cost of an air-source or ground-source heat pump.

3. Great British Insulation Scheme

• What is it? A government-backed initiative helping homes become more energy efficient through insulation.
• Who can apply? Households with poor insulation, particularly those with low income.
• Funding available: Partial or full funding for cavity wall, loft, and floor insulation.

Landlord Funding Schemes for Energy Efficiency

Landlords are increasingly encouraged to upgrade their properties to meet Minimum Energy Efficiency Standards (MEES) and attract eco-conscious tenants. Here are the notable landlord funding schemes in 2025:

1. Private Rented Sector (PRS) Energy Efficiency Fund

• What is it? Government funding to help landlords meet EPC rating requirements.
• Who can apply? Private landlords with properties rated below EPC C.
• Funding available: Up to £5,000 per property for energy-efficient upgrades.

2. Warm Homes: Local Grant for Landlords

• What is it? Part of the WH:LG scheme, providing grants to tenants for energy efficiency improvements.
• Who can apply? Private tenants with eligible properties.
• Funding available: Full funding for the first property and 50% funding for additional properties for measures like insulation and low-carbon heating.

3. Local Authority Retrofit Grants

• What is it? Regional funding schemes provided by local councils to improve energy efficiency.
• Who can apply? Landlords and homeowners in designated council areas.
• Funding available: Varies depending on location and council budgets.

Retrofit Incentives: Making Homes Greener in 2025

For those looking to upgrade older properties, retrofit incentives make energy-efficient improvements more affordable. Here’s what’s on offer:

1. Home Upgrade Grant Phase 2 (HUG2)

• What is it? A retrofit funding program targeting off-gas grid homes.
• Who can apply? Low-income households in rural areas.
• Funding available: Grants for insulation, heat pumps, and solar panels.

2. VAT Reduction on Energy Efficiency Upgrades

• What is it? A 0% VAT rate on energy-saving materials to reduce costs.
• Who can apply? Homeowners and landlords upgrading insulation, heat pumps, or solar panels.
• Funding available: A VAT reduction on installation costs.

3. Solar Panel & Battery Storage Grants

• What is it? Various funding schemes supporting solar panel and battery storage installations.
• Who can apply? Homeowners, landlords, and businesses.
• Funding available: Discounts and grants through local and national schemes.

How to Apply for Green Energy Grants in the UK

Applying for energy grants in the UK is usually straightforward. Here’s how to get started:

1. Check eligibility – Visit the UK government or energy supplier websites to see if you qualify.
2. Gather necessary documents – You may need proof of ownership, income details, and an EPC certificate.
3. Apply online – Most schemes offer quick digital applications through government or local council portals.
4. Wait for approval – Some funding schemes have limited budgets, so apply early.

Why Apply for Energy Efficiency Grants in 2025?

Investing in energy-efficient home improvements not only reduces energy bills but also increases property value and supports the UK’s journey to net zero. Whether you’re a homeowner, landlord, or tenant, exploring these green grants, landlord funding schemes, and retrofit incentives can help make sustainable living more affordable.