Go Green, Get Grants: Renewable Energy Grants in the UK [2024]

As the world shifts towards sustainable energy sources, the UK has been at the forefront of implementing policies and incentives to encourage renewable energy adoption. With the election in July bringing in a new government, the future of renewable energy in the country is still being determined. The Department of Energy Security and Net Zero have appointed leading industry and academic experts to their Clean Power 2030 Advisory Commission to accelerate their mission for clean power by 2030. They have also assembled a ‘solar taskforce’ to boost solar energy’s role in the clean power mission, with a new solar roadmap set for release soon.

Government Grants and Schemes

Renewable Heat Incentive (RHI)

This scheme offers payments to homeowners and businesses who install renewable heat systems, such as solar thermal, ground source heat pumps, and biomass boilers. The Domestic Renewable Heat Incentive is now closed to new applicants, but between 2011 and 2021 there were over 78,000 approved applications, with payments towards a renewable energy heat pump totalling £529m since its launch.

Smart Export Guarantee (SEG)

SEG enables households and businesses with renewable energy systems such as solar to export surplus electricity back to the grid for a fixed tariff. This was instituted as a replacement to the Feed-in-Tariff which ended in 2019. Electricity suppliers with at least 150,000 domestic customers are required to offer a SEF tariff. Rates do vary by supplier so research into the best rates is recommended.

Green Homes Grant (GHG)

While the scheme has now closed, it provided vouchers to homeowners to install energy-efficient home improvements, including renewable heat systems.

Boiler Upgrade Scheme (BUS)

This scheme is available to homeowners and non-domestic buildings, providing upfront capital grants to support the installation of heat pumps and biomass boilers in the property. On behalf of property owners, installers can apply for £7,500 to cover some or all of the cost and installation of an air source heat pump, ground source heat pump, or biomass boiler. The Department of Energy Security and Net Zero announced an extension of the BUS from 2025 to 2028, with an additional £1.5 billion in funding.

Local Authority Grants

Many local authorities offer their own grants and incentives to support renewable energy projects within their communities. See a list for local councils and some of the grants they are offering.

• Manchester City Council (MCC) - The Home Upgrade Grant Phase 2 (HUG2) began in November 2023, and is a programme of energy efficiency upgrade works to privately owned and rented properties across Manchester, with delivery to continue until March 2025. It is specifically targeted at properties that do not have gas central heating and an EPC of D or below. The funding is intended to provide low carbon heating systems such as air source heat pumps, loft insulation measures and solar panels.

• Bury Council - The EC04 Scheme is available for homes in the Oldham, Trafford, Bury, Salford, Stockport, Tameside and Rochdale boroughs. The EC04 or Energy Company Obligation is a government scheme designed to tackle fuel poverty and help reduce carbon emissions. Your local authority can refer owner-occupiers and private tenants they deem eligible such as those in low-income households. More information on the scheme can be accessed through your council’s website.

• The Greater Manchester Combined Authority (GMCA) is backing the independent non-profit service Your Home Better, which is available to the residents of Greater Manchester. They provide unbiased, expert advice and can guide homeowners through their retrofit journey and energy-saving improvements.

Proposed Grants and Future Initiatives

Net Zero Strategy: The UK government's Net Zero Strategy outlines ambitious plans to achieve net-zero greenhouse gas emissions by 2050. This includes continued investment in renewable energy and the development of new incentives and policies. This includes the Great British Energy Bill, where a publicly owned clean power company will be set up to accelerate investment in renewable energy.

Building Regulations: The government is considering tightening building regulations to require new homes and commercial buildings to be more energy-efficient and incorporate renewable energy technologies. In 2022, the Building Regulations Part L was updated, with the mandate to improve the current minimum standard for carbon emissions by 31%.

Community Energy: There is a growing focus on supporting community energy projects, which enable local communities to generate and share renewable energy. Community Energy England has regional Net Zero Hubs that are currently accepting applications for renewable energy projects.

Renewable Energy Innovation Fund: The government has announced plans to establish a

Renewable Energy Innovation Fund to support the development of new renewable energy technologies and reduce costs. The Strategic Innovation Fund aims to help transform gas and electricity networks for a low-carbon future. They aim to invest £450 million by 2028.

Carbon Capture and Storage (CCS): While not strictly a renewable energy source, CCS is considered a crucial component of achieving net-zero emissions. The government is investing in CCS projects to capture and store carbon dioxide from industrial processes.

International Cooperation: The UK is also working with other countries to promote renewable energy and combat climate change. This includes participating in international climate agreements and supporting the development of renewable energy projects in developing countries.

The UK offers a range of grants and incentives to support the adoption of renewable energy. By understanding the available options and staying informed about future developments, you can make informed decisions and contribute to a more sustainable future. Check with your local council websites for up to date information on available grants and incentives in your area.

Get in touch with Atlantic Renewables to discuss your renewable energy requirements and start your green journey today!