Currently, we utilise three schemes to help Islanders upgrade their homes:

• Energy Company Obligation ECO4
• The Great British Insulation Scheme (GBIS)
• Home Upgrade Grand Phase 2 (HUG2)

Each scheme offers different home upgrades and varies in its eligibility criteria. If you and your home qualify, the grant could cover up to 100% of the cost of a heating or insulation upgrade.

Can’t I Apply For a Grant Myself?

Absolutely! For ECO4 grants, for example, you can find contact details of energy suppliers participating in the scheme on the Ofgem website. You can also check out gov.uk for more information.

However, even if you’re eligible for a grant, in our experience, it can be challenging to find tradespeople to carry out the work. That’s because installers need to be “PAS” certified to install, commission, and hand over the project.

Typically, most PAS-certified installers you’ll deal with are mainland-based. Many won’t be prepared to take on a project on the Isle of Wight, and the ones that are will have their own unique criteria when undertaking grant-funded jobs.

On the other hand, Future Isle of Wight’s volunteer team all live and work locally, so we understand the unique issues residents face. We can arrange for grant-funded work to be carried out by an appropriate retrofit company and act as an unbiased third party to ensure everything runs smoothly.

What Makes Me Eligible for a Grant?

Each scheme has different criteria. In very broad terms, you’ll need to be on certain benefits or have a combined household income of under £31,000. You’ll also need to live in a privately owned or rented property with a poor Energy Performance Certificate (EPC) rating.

Let’s take a closer look at the different schemes:

ECO4

The Energy Company Obligation (ECO4) scheme runs until March 2026. The initiative is backed by the UK government, overseen by Ofgem and funded by the big energy companies. 

ECO4 aims to reduce carbon emissions and eradicate fuel poverty by making homes more energy-efficient. The scheme is aimed at low-income or vulnerable households and typically requires applicants to be on one of the following qualifying benefits:

• Income-based Jobseekers Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Income Support (IS)
• Pension Credit Guarantee Credit (PCGC)
• Working Tax Credit (WTC)
• Child Tax Credit (CTC)
• Universal Credit (UC)
• Housing Benefit
• Pension Credit Savings Credit (PCSC),
• Child Benefit

As well as being on a qualifying benefit, your home needs to have an Energy Performance Certificate (EPC) rating of D, E, F or G.

If nobody in your household is on one of the benefits listed above, there may still be a way to qualify, known as “LA Flex”. This part of the scheme allows the local authority to nominate your property for funding, but you’ll need to have a total household income of under £31,000.

What can I get with an ECO4 grant?

The ECO scheme grants allow for various energy efficiency improvements such as boiler replacement, cavity wall insulation, internal wall insulation, loft insulation, heat pumps, and solar panels.

The value of an ECO4 grant varies based on the improvements a surveyor thinks your house would benefit from, as well as your specific circumstances. In short, an ECO4 grant could partially or completely cover the upgrade costs.

Please be aware that ECO4 takes a “fabric-first” approach. That means you’ll only be able to get things like air-sourced heat pumps and solar panels if your house is insulated to the required standard.

Typically, that means if you’re entitled to a grant, the funds first need to be used for loft, cavity wall or internal wall insulation —if your house requires any of those measures.

The Great British Insulation Scheme (GBIS)

The Great British Insulation Scheme (GBIS) is meant to complement ECO4. However, unlike the “whole house” upgrades you can get with ECO4, the GBIS scheme mostly offers a single insulation measure, such as cavity wall or loft insulation.

You’ll need to meet the following criteria to get a free or partially-funded insulation upgrade:

• You’re on a qualifying benefit and a homeowner with an EPC of D to G.
• You’re on a qualifying benefit and rent a home (not through the council or Housing Association) with an EPC of D or E.
• You’re a homeowner with an EPC of D or lower and a council tax band of A to D.

Qualifying benefits:

• Income based Job Seekers Allowance
• Income related Employment and Support Allowance (ESA)
• Income Support
• Pension Credit
• Guarantee Credit
• Working Tax Credit
• Child Tax Credit
• Universal Credit
• Housing Benefit

Home Upgrade Grant (HUG)

The Home Upgrade Grant (HUG) Phase 2 is a Government-backed local authority scheme for properties without gas heating. HUGS is aimed at people struggling to pay their heating bills or unable to keep their homes warm over the winter. 

HUGS funding is potentially available to homeowners and tenants (with their landlord’s cooperation).

If you’re eligible, free home improvements could consist of:

• Various insulation measures
• Air-source heat pumps
• Electric radiators

Please note that like ECO4, a HUG grant requires a “fabric-first” approach. Put simply, that means funding will first be used to address any shortcomings in your home’s insulation before the rest can be spent on heating upgrades.

Eligibility

To get HUG funding, you must:

• Own or rent a property heated by oil, coal, LPG or electric heaters;
• Not use a gas boiler as your home’s primary heating system;
• Have an energy performance certificate (EPC) rating of D, E, F or G (landlords may be responsible for paying towards the costs of F or G-rated properties).

You’ll also need to have a household income below £36,000 a year to qualify or be on one of the following benefits:

• Child Benefit
• Child Tax Credit
• Council Tax Support
• Housing Benefit
• Income-based Jobseeker’s Allowance
• Income Support
• Pension Credit Guarantee Credit
• Pension Credit Savings Credit
• Social Fund (Sure Start Maternity Grant, Funeral Payment, Cold Weather Payment)
• Working Tax Credit
• Universal Credit