Retrofit can be expensive with large upfront costs and long payback times. Improvements will reduce your fuel bills which means that many measures will pay for themselves over time.
There are some grants and incentives that you may qualify for:
Clean Heat Grant (Boiler Upgrade Scheme)
- Until April 2025, households can apply for a grant to help afford a low carbon heating system. The grant provides funding towards an air source or ground source heat pump
- Check the Clean Heat Grant for eligibility criteria and how to apply
- Register to be part of the scheme as a heat pump installer.
Up to April 2027, the cost of some improvements will be free from VAT. This applies to the supply and installation of these. Costs of these measures can lower by between five and twenty percent. This exemption is applied for by a contractor who is:
- installing energy saving materials (such as insulation)
- installing grant-funded heating equipment.
A full list of exempt measures has not yet been published. There are some exemptions to the 0% VAT rate, such as double glazing and domestic battery energy storage.
A green mortgage takes many forms but the two most common are:
- A mortgage that rewards a person for buying or owning an energy efficient home (usually EPC A or B). The homeowner is rewarded as they are offered more favourable mortgage terms such as a lower interest rate or cashback upon sale
- Money is lent at discounted rates to enable a homeowner to pay for green home improvements
Find out more about green mortgages and where to find them
- Retrofit measures can be eligible for Capital Gains Tax relief
- This tax often applies when you own multiple properties such as Buy to let, second homes, inherited properties and you sell one
- Always seek advice from a professional on tax issues
- Find out more by accessing the government's Capital Gains Tax calculator.
Warm Homes Discount Industry Initiatives
- Warm Homes Discount is on top of winter fuel grants
- Funded by energy companies between October and March
- Rebates of £140 to households in danger of fuel poverty
- Varies slightly from supplier to supplier