The short answer is no, most UK energy grants are not repayable
If you are considering applying for a government energy grant, you may be concerned about having to pay the money back later. The vast majority of UK energy grants for homeowners are outright, non-repayable awards.
The Department for Energy Security and Net Zero (DESNZ) confirms that grants under schemes like ECO4, the Boiler Upgrade Scheme, and the Great British Insulation Scheme do not require repayment (DESNZ, ECO scheme overview, 2026). The key distinction is that grants are not loans. They are subsidies built to reduce your upfront costs, not debts you must repay.
Only in very specific circumstances, outlined in your grant agreement, would you ever be asked to return the money.
Who is eligible for non-repayable energy grants in 2026
Eligibility for non-repayable grants is primarily based on income, property type, or receipt of specific benefits. The rules vary by scheme.
ECO4 targets low-income households and those in fuel poverty. You may qualify if you receive means-tested benefits or have a household income below £31,000 (Ofgem, ECO4 eligibility, 2026).
The Boiler Upgrade Scheme is open to all owner-occupiers in England and Wales, regardless of income, for installing a heat pump or biomass boiler (GOV.UK, Boiler Upgrade Scheme, 2026).
The Great British Insulation Scheme closed on 31 March 2026. It funded insulation measures only and never covered windows or glazing.
Home Energy Scotland offers grants for heat pumps and insulation, with some measures income-assessed (Energy Saving Trust, Home Energy Scotland, 2026).
Quick numbers typical grant amounts and conditions
| Grant scheme | Maximum grant amount | Typical household saving | Repayment required? | Key condition |
|---|---|---|---|---|
| Boiler Upgrade Scheme | £7,500 (2026) | £7,500 off heat pump installation | No | Must be owner-occupier; installation by MCS-certified installer |
| ECO4 | Varies by measure (insulation, boiler replacement) | Average £4,000–£10,000 | No | Must meet income or benefits criteria |
| Great British Insulation Scheme | Up to £1,500 for cavity wall or loft insulation | ~£300–£500 per year on heating bills | No | Must be in eligible EPC band and council tax band |
| Home Energy Scotland grant | Up to £7,500 (heat pump) + £1,500 (insulation) | £9,000 total | No | Must be owner-occupier in Scotland; income-assessed for some measures |
All figures are for 2026 as published by DESNZ, Ofgem, and Energy Saving Trust (DESNZ, Boiler Upgrade Scheme guidance, 2026; Ofgem, ECO4 overview, 2026; Energy Saving Trust, Home Energy Scotland, 2026).
When you might have to pay back an energy grant, the rare exceptions
Repayment is only required if you breach the specific terms of the grant agreement. The most common trigger is selling the property within a set period, typically five years, after receiving a grant for a heat pump or insulation (DESNZ, Boiler Upgrade Scheme terms and conditions, 2026).
Other triggers include failing to complete the installation as approved, or withdrawing from the scheme after receiving funds. The grant agreement will specify a “clawback” or repayment clause. Read it carefully before signing.
If you sell the property within the clawback period, you may need to repay a portion of the grant. The exact amount depends on the scheme and the time remaining. For example, the Boiler Upgrade Scheme requires repayment if the property is sold within five years, unless the new owner is also eligible and takes over the grant conditions.
How to verify your installer is legitimate to avoid grant repayment risks
Using an unapproved installer is one of the fastest ways to lose your grant or face repayment demands. Most grants require the installer to hold specific certifications.
- For heat pumps, solar panels, and biomass boilers, the installer must be MCS-certified. Check their status on the MCS Installer Database at mcscertified.com.
- For insulation, check the installer is registered with TrustMark or a similar consumer protection scheme (TrustMark, find a tradesperson, 2026).
- For gas boilers, ensure the installer is on the Gas Safe Register (Gas Safe Register, check an engineer, 2026).
- For electrical work, verify NICEIC or NAPIT registration.
Using an uncertified installer can void your grant and may result in a repayment demand from the scheme administrator.
How to confirm your specific grant is non-repayable, step-by-step
If you are unsure whether your grant is repayable, follow these steps.
- Identify the grant scheme, check your offer letter or the scheme name. It will usually say ECO4, Boiler Upgrade Scheme, Great British Insulation Scheme, or Home Energy Scotland.
- Read the terms and conditions, look for sections headed “repayment”, “clawback”, or “recovery of grant”. If you cannot find these, the grant is likely non-repayable.
- Contact the scheme administrator, for ECO4, contact Ofgem. For the Boiler Upgrade Scheme, contact DESNZ. For Home Energy Scotland, contact Energy Saving Trust. Ask them to confirm in writing whether repayment applies.
- Ask your installer, request written confirmation of the grant conditions before work begins. A reputable installer will provide this.
- Keep all paperwork, store the grant agreement, installation certificate, and any correspondence for at least five years. This protects you if a repayment question arises later.
For a full list of current grants and how to apply, visit GOV.UK, energy grants for your home, 2026.
