The Energy Company Obligation (ECO) scheme, specifically the latest phase known as ECO4, along with the Great British Insulation Scheme (GBIS), have garnered significant interest among homeowners looking to enhance their energy efficiency. One of the most common inquiries we receive at Energy Saving Genie is whether external wall insulation grants are available under these grant schemes.
External wall insulation not only looks great but also boosts your home’s energy efficiency. We have a range of installers who provide this service to commercial customers, yet we’ve seen only a handful of homes benefit from it through these grant schemes. You might wonder why, especially if you’re keen on these improvements for your own home. The main reason is the high installation cost, which isn’t fully covered by current grants.
Here we explain the external wall insulation grant options under the two main grant schemes (ECO4 and GBIS).
What are the ECO4 and GBIS Grant Schemes?
ECO4 Grant Scheme
The Energy Company Obligation’s Phase 4 is called ECO4 and it is part of the UK government’s initiative to reduce carbon emissions and alleviate fuel poverty. Energy suppliers are obligated to fund measures that enhance energy efficiency in homes, thereby reducing overall energy consumption and carbon emissions. These measures can include a variety of home improvements, such as insulation, heating upgrades, and renewable energy installations.
Great British Insulation Scheme (GBIS)
The GBIS aims to further support energy efficiency improvements across the UK. It complements the ECO4 scheme by providing additional funding and resources to help more households improve their energy efficiency. The GBIS focuses on making homes warmer and reducing energy bills through the installation of insulation (one insulation measure per property).
Is External Wall Insulation Covered Under ECO4 and GBIS Grants?
Theoretically, external wall insulation grants are included in the guidance for both of Ofgem’s ECO4 scheme and the GBIS. However, this measure hasn’t been made available as the grant funding levels are too low to cover costs. So, despite its inclusion in the official guidelines, external wall insulation does not receive sufficient funding through either ECO4 or GBIS to cover the full cost of installation. As a result, we have yet to see any of our 30+ registered installers offer external wall insulation under these schemes. The financial gap between the grant provided and the actual cost of the insulation is often too large, making it an unfeasible option for both installers and homeowners.Why Isn’t External Wall Insulation Widely Funded?
The primary reason for the lack of funding for external wall insulation under ECO4 and GBIS is cost. External wall insulation is a relatively expensive measure compared to other energy efficiency improvements. The grant allocations under these schemes do not sufficiently bridge the cost gap, leading energy suppliers and installers to prioritise other, more cost-effective measures. According to Green Match, for a 3-bed semi-detached home in the UK, homeowners should expect to pay around £2700 for cavity wall insulation, whereas solid wall insulation averages are around £7,500 – £13,000. For solid wall insulation costs, internal wall insulation would be at the lower end of the range and external insulation would be at the higher end. Kate Hallewellof Energy Saving Genie says, ‘The average costs for insulation mean that mostly low-cost insulation is being installed through the Great British Insulation Scheme. Daniel Chulan of E.ON Energy UK reported that 50% of their GBIS delivery had been for cavity wall insulation, which supports the funding levels that we are seeing and the unviability of costlier measures such as external wall insulation.’
Other Options to Insulate Walls
You can apply for internal wall insulation grants if your home has solid walls and, as it isn’t as expensive to install, the funding is likely to cover more of the cost and include lower householder contributions. If you have cavity walls, then cavity wall insulation can be installed and, in most cases, cavity wall insulation is fully-funded.Alternative Measures Under ECO4 and GBIS
While external wall insulation may not be a viable option under the ECO4 and GBIS schemes, there are numerous other measures that can significantly improve your home’s energy efficiency and reduce carbon emissions. These include:- Internal Wall Insulation: Insulating the walls from the inside to reduce heat loss.
- Loft Insulation: A cost-effective way to prevent heat loss through the roof.
- Cavity Wall Insulation: Filling the gaps between walls to reduce heat loss.
- Heating System Upgrades: Replacing old, inefficient boilers with modern, energy-efficient models.
- Renewable Energy Installations: Heat pumps and solar panels provide sustainable energy solutions.
If You Really Want External Wall Insulation
While external wall insulation may not be a viable option under the current funding rates for ECO4 and GBIS schemes, it’s important to note that the rules and eligibility criteria for these grants are constantly evolving. To stay up-to-date with the latest information and ensure you don’t miss out on any new opportunities, we recommend registering for updates with Energy Saving Genie. The easiest way to do this is to input your address into our free grant checker. By doing so, you’ll receive timely updates and guidance on available grants and energy-saving measures that suit your needs and you’ll be first on the list when external wall insulation is available.
Other Grant Schemes
Home Upgrade Grant (HUG2)
The Home Upgrade Grant (HUG2) is designed to support low-income households in making energy-efficient improvements. This scheme focuses on upgrading the energy performance of homes that are not connected to the gas grid, targeting rural and hard-to-reach areas. Measures covered under HUG2 include insulation, low-carbon heating systems, and energy-efficient windows and doors, alongside cavity wall or solid wall insulation. Improving the overall energy efficiency of homes results in savings on energy bills and carbon emissions, providing long-term benefits to eligible households.Boiler Upgrade Scheme
The Boiler Upgrade Scheme (BUS) is another important initiative aimed at improving energy efficiency in homes across the UK. This scheme offers grants to homeowners and landlords to help cover the cost of replacing old, inefficient boilers with new, energy-efficient models. The Boiler Upgrade Scheme not only helps reduce energy consumption and carbon emissions but also contributes to lower energy bills for households. By upgrading to a modern boiler, you can ensure a more reliable and efficient heating system, which is essential for maintaining a comfortable home environment.Conclusion
While both the ECO4 and GBIS schemes list external wall insulation as an eligible measure, the reality is that the funding provided is insufficient to cover its high costs. Therefore, it is not commonly offered by our network of installers. However, there are still plenty of other energy-saving measures available through the ECO4 and GBIS grant schemes that can help improve your home’s efficiency and reduce your carbon footprint. For more information on how to take advantage of the ECO4 and GBIS schemes and explore the best energy-saving measures for your home, use Energy Saving Genie’s free grant checker.Frequently Asked Questions (FAQs) About External Wall Insulation Grants
Can I get a grant for external wall insulation under the ECO4 scheme?
External wall insulation grants are included in the ECO4 scheme, but the funding provided is often insufficient to cover the full cost of installation. This means we haven’t seen any fully-funded external wall insulation installations through grants alone.
How much could an external wall insulation grant save you?
The Energy Saving Trust estimates that solid wall insulation installed on a 3-bed semi-detached property would save £290 a year.
Do I need to apply on the GOV.UK website?
No. Simply use our free grant checker to check your eligibility and to apply for grants. There, you can register for updates relating to external wall insulation.
Do I need to claim benefits to be eligible for GBIS?
No, the GBIS scheme has both a low-income group and a general group. If you don’t claim any benefits, you can qualify through the general group.
What benefits are included in the low-income group of the Great British Insulation Scheme?
• Child Tax Credit
• Housing Benefit
• Income-based Jobseekers Allowance (JSA)
• Income related Employment and Support Allowance (ESA)
• Income Support
• Pension Credit Guarantee Credit
• Pension Credit Saving Credit
• Universal Credit
• Working Tax Credit
(Child Benefit is also a qualifying benefit but if you only get Child benefit you also need to meet income rules)
What health conditions or other factors are included in the low-income group of the Great British Insulation Scheme?
The eligibility groups for the Great British Insulation Scheme mirror the ECO4 grant scheme. Applicants can qualify through:
- claiming an eligible benefit
- claiming child benefit and meeting income rules
- having a health condition
- having annual household income under £31,000
- being vulnerable to the effects of living in a cold home
If you don’t meet any of the low-income criteria, you will instead be able to access funding through the ‘general’ group.
How do I know what my Energy Performance Certificate rating is?
While homeowners can check their EPC bands on the government website, our free grant checker integrates with the gov.uk Energy Performance Certificate register so you can check your EPC rating and check eligibility for grants at the same time (win/win!).
Where is the Great British Insulation Scheme available?
The Great British Insulation Scheme (GBIS) is available in England, Scotland and Wales.
Where is the Energy Company Obligation (ECO4) available?
The Energy Company Obligation (ECO4) is available in England, Scotland and Wales.
Why can't I have free external wall insulation?
At the moment funding levels don’t fund completely free external wall insulation. The grant rules do change, so sign up for alerts to make sure you don’t miss out if funded external wall insulation is offered in the future.
Can I pay the shortfall in funding for external wall insulation?
Yes, some installers will often allow customers to pay the shortfall if their mind is set on external wall insulation. If you use the free grant checker include information about wanting external wall insulation and you can request a free obligation quote for the grant and potential costs.
Does the GBIS scheme cover external wall insulation costs?
While the Great British Insulation Scheme (GBIS) includes external wall insulation in its guidelines, the actual funding available typically doesn’t cover the full cost, making it only viable with contributions towards the installation.
Why is it hard to find funding for external wall insulation?
External wall insulation is relatively expensive compared to other energy efficiency measures. The grants provided under ECO4 and GBIS often do not fully cover these costs, leading to a preference for more cost-effective measures.
What are my alternatives if I can't get a grant for external wall insulation?
The main alternate to external wall insulation is internal wall insulation where walls are insulated from the inside.
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