Finance is one of the key considerations for retrofit work, and there are funding options available. Although most of the Retrofit measures you may consider will pay back over time, some have longer a payback period and extra funding will help you fund these measures.
A simple method to work out the payback period would be to divide the total installation cost of retrofit works by the estimated annual savings from energy bills. But this should be used carefully, as this does not consider discount rates, future energy prices, inflation or costs for maintenance and replacement. The Energy Saving Trust gives more details on how to work out the payback periods.
If you cannot afford retrofit works and need some help with your energy bills, see our staying warm and well pages.
Energy grants
There are funding schemes available to improve energy efficiency and help with the installation of low-carbon heating.
You can see a full list from GOV.UK. The below schemes are highlighted for homeowners:
- Boiler Upgrade Scheme (BUS): An upfront capital grant available to support the installation of heat pumps and biomass boilers in homes.
- Home Upgrade Grant phase 2: This provides energy efficiency measures and low carbon heating help for low-income households who do not have a gas boiler.
- Energy company obligation scheme (ECO): This scheme requires energy suppliers to provide grants to pay the whole or partial cost of home energy efficiency improvement works. This applies to households considered to be in fuel poverty living in a property with a low EPC rating.
- Great British Insulation Scheme: This is a government scheme previously known as ECO+ scheme. You might get free or cheaper insulation if your home has an EPC rating of D to G and in Council Tax bands A-D. You can be a homeowner, landlord or tenant.
Electric vehicle charge point grant
There are grants available towards the installation of EV charge points and infrastructure. It is available to renters, flat owners, households and landlords. See GOV.UK for grant details.
Planning advice on the installation of charging points is also available for residents, businesses, developers and highways engineers.
When installing of EV charge point in front gardens, you should use paving that allows rainwater to seep through and drain into the ground below, as this helps to reduce local flood risk.
You can also consider installing PV panels at the same time, as solar panels help you to save money from charging electric cars and also to cut down carbon emissions.
Tax relief
There may be tax relief, or zero-rated tax, on the installation of energy-saving materials and heating equipment in residential and charitable buildings.
See here for details of what would be eligible for the VAT relief.
Green mortgages
Green mortgages can be:
- A mortgage that rewards you with cashback or a better interest rate when the property you are buying or living in has a good EPC rating of A or B.
- A mortgage with a discounted interest rate, or cashback on any money you borrow to upgrade your home’s energy efficiency.
There is an increasing number of banks providing green mortgages. You should always shop around to look for best deals, there are money saving websites such as money saving expert that help to provide a comparison of different current mortgage deals.
Other sources of retrofit finance
A blog post by Energy Saving Trust provides a useful overview of funding methods available.