If you’ve recently completed a retrofit assessment or are planning one, you might be wondering how to fund the recommended upgrades. To help you get started, we’ve compiled a summary of the funding options available in our area, from Burnham-on-Sea to Weston-super-Mare.

Once you receive your retrofit assessment, you’ll have a detailed report outlining your home’s current energy performance and recommended improvements. The upfront cost of retrofitting can be daunting, but fortunately there are various local and national schemes to help make these improvements more affordable—especially for low-income households. These grants and funding options can reduce or even cover the cost of upgrades such as insulation, heat pumps and solar panels. By taking advantage of these schemes, you can future proof your home, making it greener, more energy-efficient and less expensive to run in the long term.

Local funding options:

1.     Lendology CIC – Home and renewable energy loans

Available in several council areas, including North Somerset Council (Weston-super-Mare) and Somerset Council (Burnham-on-Sea and Highbridge).

Lendology CIC is a social enterprise lender working in partnership with local councils to offer affordable loans for home improvements, including renewable energy installations. Their aim is to help homeowners and lanlords invest in renewable technologies and energy-efficient upgrades like solar panels, air/ground source heat pumps and biomass systems. These fixed loans can include repair or installation of heating and other works to keep a property warm and free of damp or mould.

What’s on offer:

  • Fixed interest loans for installing solar panels, air/ground source heat pumps, and biomass systems
  • Assistance with other property maintenance needs
  • Flexible repayment terms up to 15 years with no early repayment charges

Find out more: https://www.lendology.org.uk/about/

2. Bright Green Homes Project – Home upgrade grant

Available across several council areas, including North East Somerset Council and North Somerset Council (Weston-super-Mare)

The Bright Green Homes project supports low-income households without mains-gas central heating. The goal is to make homes more energy-efficient through insulation and low-carbon technology installations.

What’s on offer:

  • Cavity wall, external wall, underfloor and loft insulation
  • Air source heat pumps
  • Solar PV installations

Eligibility criteria:

  • Combined annual household income of £36,000 or less
  • Valid Energy Performance Certificate (EPC) rating of D, E, F, or G
  • No gas central heating in the property
  • Must reside in the North Somerset Council area
  • Note: Owner-occupiers and private landlords (with four or fewer properties) can apply. Landlords are required to contribute one-third of the upgrade costs.

Find out more: https://www.bristolcityleap.co.uk/domestic/bright-green-homes/

National funding options:

3.     Great British Insulation Scheme (GBIS)

Available nationwide, the Great British Insulation Scheme (GBIS) has seen 304 measures installed in Somerset from March 2023 to December 2024.

Helps households improve their home’s energy efficiency through free or discounted insulation measures. This can help reduce energy bills by an average of £300–£400 per year.

The scheme complements the ECO4 scheme, yet unlike ECO4’s ‘whole house’ approach, this scheme will mostly deliver single insulation measures.

What’s on offer:

  • Loft, roof, cavity wall, and other insulation installations

Eligibility:

  • EPC rating between D and G
  • Council Tax bands A-D (England) or A-E (Scotland/Wales)

Support levels:

  • General group: Reduced-cost insulation with around a 10% homeowner contribution
  • Low-income group: Free or heavily subsidised insulation

Check your eligibility with the government’s online tool

4.     ECO4 Grant

Available nationwide through major energy suppliers.

Provides funding to help lower-income households improve their homes’ energy efficiency and reduce heating costs.

What’s on offer:

  • Loft, cavity and internal wall insulation
  • Air and ground source heat pumps
  • Biomass boilers and boiler upgrades
  • Solar panel installations

The amount of funding available through the ECO4 grant varies depending on the type of upgrade you require, but for eligible homeowners, the ECO4 grant covers 100% of the cost of installation.

How to apply: This is a government scheme funded by participating energy suppliers. Apply via your energy supplier Popular providers include: British Gas, Octopus Energy and OVO Energy

5.     Boiler Upgrade Scheme

Available nationwide. Bridgwater Constituency (includes Burnham-on-Sea and Highbridge) had 60 heat pumps installs paid for under BUS by the end of 2024.

Provides grants to help property owners replace fossil fuel heating systems with more efficient, low-carbon alternatives. The scheme is administered by Ofgem on behalf of the government.

What’s on offer:

  • £7,500 off the cost and installation of an air source heat pump
  • £5,000 off the cost and installation of a biomass boiler
  • £6,000 off the cost and installation of a ground source heat pump

Eligibility criteria:

  • You must own the property you’re applying for
  • You must be replacing fossil fuel heating (oil, gas or electric)
  • Your property must have a valid EPC with no outstanding recommendations for loft or cavity wall insulation. You are still eligible if you’ve already had energy efficient funding.
  • Your property must have a maximum installation capacity of up to 45kWth– anything over is not eligible.

You can check if you’re eligible and apply for the grant on GOV.UK.

6.     Connected for Warmth

Available nationwide

Offers fully funded air source heat pump installations for eligible households. Typically costing between £12,000–£15,000, these systems can be installed at no cost to successful applicants.

What’s on offer:

  • Free air source heat pump and heating system installation

Eligibility criteria:

  • Property must not be heated by mains gas
  • EPC rating of D, E, F, or G (homeowners) or E, F, or G (private tenants)
  • An electric credit or smart meter installed
  • Household income below £31,000 or receipt of qualifying benefits

Tenants must have landlord permission before applying.

7.     Warm Homes: Local Grant (Coming soon)

Available from April 1st, 2025. Some areas will qualify automatically, while others will depend on government approval.

The scheme will provide grants for energy performance upgrades and low-carbon heating via local authorities. Part of the Warm Homes Plan which aims to upgrade five million homes in England by 2030 to help low-income households improve energy efficiency and reduce fuel poverty.

What’s on offer:

  • Up to £15,000 for energy performance upgrades (insulation, glazing, solar PV, etc.) with the aim of achieving band B and C where possible.
  • Up to £15,000 for low-carbon heating systems (e.g., heat pumps). These systems will be encouraged in homes not connected to the gas grid and heated by more carbon-intensive fuels like oil or coal.

Eligibility criteria:

  • Gross annual household income of £36,000 or less
  • Living in deprived areas or receiving means-tested benefits
  • EPC rating between D and G
  • Available for both owner-occupied and privately rented homes.
  • Landlords can apply for funding to upgrade properties, with full funding for the first property and 50% for additional properties.