The Welsh Government Optimised Retrofit Programme offers up to £25,000 per home for whole-house energy efficiency improvements
If you own an older, draughty home in Wales with high energy bills, the Welsh Government has a dedicated funding route that treats your property as a complete system rather than adding single measures. The Optimised Retrofit Programme (ORP) is the primary Welsh scheme for deep energy retrofits, offering grants of up to £25,000 per property for owner-occupiers in Wales.
The Welsh Government Optimised Retrofit Programme offers up to £25,000 per home for whole-house energy upgrades, with average grants of £15,000-£18,000. Households below £31,000 income typically receive 100% funding through their local council.
- Grants up to £25,000 per home for whole-house energy upgrades.
- Households below £31,000 income typically get 100% funding.
- Covers solid wall insulation, heat pumps, solar panels, and ventilation.
- Apply via your local council waiting list, not directly to Welsh Government.
- Average project cost in 2025-2026 was £15,000-£18,000 per home.
- The Welsh Government Optimised Retrofit Programme offers up to £25,000 per home for whole-house energy efficiency improvements
- The typical ORP grant covers 70–100% of the cost, depending on household income and property type
- A typical ORP package reduces a home’s annual energy demand by 40–60% in the first year
- Quick numbers key ORP grant figures compared to other Welsh schemes
- The ORP is the direct answer for homeowners asking “How do I get a Welsh optimised retrofit grant?”
- All ORP installations must be completed by MCS-certified contractors and meet PAS 2035 standards
- The ORP grant is tax-free and does not affect means-tested benefits
The ORP covers measures such as solid wall insulation, heat pumps, solar panels, and mechanical ventilation, all delivered through a whole-house plan. Homeowners do not apply directly to the Welsh Government; instead, they must register interest through their local council’s waiting list, and the council manages the project using approved contractors (Welsh Government, 2026).
The programme is designed to reduce both energy bills and carbon emissions by addressing the building fabric first, then adding low-carbon heating and renewable generation. It is not a quick fix but a comprehensive upgrade that can take several months from survey to completion.
The typical ORP grant covers 70–100% of the cost, depending on household income and property type
ORP grants are not a flat amount. The Welsh Government uses a model based on fuel poverty and energy performance to determine the level of support for each household. Households with a gross income below the Welsh median (approximately £31,000 per year) typically receive 100% funding, while higher-income households may receive 70% or less (Welsh Government, 2026).
The maximum grant value is £25,000, but most ORP-funded projects in 2025–2026 averaged £15,000–£18,000 per home, according to local authority delivery reports. The grant covers the full cost of the survey, installation, and post-installation monitoring. If the total project cost exceeds the grant cap, the homeowner must cover the difference, though this is rare for properties meeting the programme’s eligibility criteria.
Income assessment uses gross household income, including benefits, and is verified by the local authority. If your income is close to the median threshold, you may receive partial funding rather than full coverage.
A typical ORP package reduces a home’s annual energy demand by 40–60% in the first year
The “optimised” approach means a whole-house survey identifies the most effective combination of measures, starting with fabric improvements (loft, wall, floor insulation) before adding low-carbon heating. Data from Welsh Government pilot phases (2019–2024) shows an average 45% reduction in modelled energy use, with some homes achieving over 60% after all measures are installed (Welsh Government, 2025).
Real-world savings depend on household behaviour, but the programme’s design targets a minimum 40% reduction in annual kWh consumption for every property. The Energy Saving Trust notes that whole-house retrofits typically achieve larger and more persistent savings than single-measure installations, because the fabric improvements reduce heat loss before the heating system is upgraded (Energy Saving Trust, 2026).
For a typical Welsh 3-bed semi-detached home with an EPC rating of F, this could mean annual energy use falling from around 25,000 kWh to 12,000–15,000 kWh. The savings are modelled using SAP (Standard Assessment Procedure) calculations, which are the UK’s government-approved method for assessing energy performance.
Quick numbers key ORP grant figures compared to other Welsh schemes
| Scheme name | Maximum grant value | Average project cost | Typical annual energy saving |
|---|---|---|---|
| Optimised Retrofit Programme (ORP) | £25,000 | £15,000–£18,000 | 40–60% reduction |
| Nest scheme (Wales) | Free (no cap, but limited to specific measures) | £2,000–£5,000 per home | 10–25% reduction |
| Boiler Upgrade Scheme (GB) | £7,500 (heat pump only) | £2,500–£5,000 (after grant) | 20–40% reduction (depending on previous heating) |
Sources: Welsh Government ORP guidance, 2026; Ofgem Boiler Upgrade Scheme statistics, 2026; Nest scheme annual report, 2025–2026.
The ORP is the only Welsh scheme designed for whole-house retrofits, while Nest focuses on low-cost, low-impact measures for fuel-poor households, and the Boiler Upgrade Scheme is a GB-wide grant for heat pumps only.
The ORP is the direct answer for homeowners asking “How do I get a Welsh optimised retrofit grant?”
To qualify, you must own and live in a property in Wales with an Energy Performance Certificate (EPC) rating of E, F, or G — the lowest bands. You must be on your local authority’s waiting list; there is no national application portal. Contact your county council’s housing or energy team to register interest (Welsh Government, 2026).
The programme prioritises homes with solid walls or no insulation, and households in or at risk of fuel poverty. If your home already has cavity wall insulation and a modern heating system, you may not be eligible unless the EPC rating is still E, F, or G. Waiting times vary significantly by local authority; some councils have multi-year lists, while others may have shorter queues depending on funding allocation.
You do not need to arrange your own contractor. Once accepted, the council will commission a whole-house survey and manage the installation through its approved supply chain. how to find your local council’s energy team
All ORP installations must be completed by MCS-certified contractors and meet PAS 2035 standards
Every measure installed under the ORP must be carried out by a contractor registered with the Microgeneration Certification Scheme (MCS) for heat pumps and solar, and with TrustMark for all retrofit work. The programme requires a whole-house assessment using the PAS 2035:2023 standard, which includes a detailed retrofit plan and post-installation monitoring (MCS Charitable Foundation, 2026).
PAS 2035 is the UK’s quality standard for retrofit work. It ensures that measures are compatible with the building’s fabric, preventing issues like condensation or overheating. The assessment must be conducted by a Retrofit Coordinator registered with the TrustMark scheme (TrustMark, 2026).
To verify an installer, use the MCS Installer Database or TrustMark’s “Find a Trusted Trader” tool. Local authorities will only contract with firms on these registers, so if you are approached by an installer claiming to work under the ORP, check their certification before proceeding.
The ORP grant is tax-free and does not affect means-tested benefits
The Welsh Government confirms that ORP grants are not considered taxable income, and they are disregarded when calculating eligibility for benefits such as Universal Credit, Pension Credit, or Housing Benefit (Welsh Government, 2026). This means receiving a £20,000 ORP grant will not reduce your benefit payments or trigger a tax bill.
If you are already receiving support under the Nest scheme (Wales’s main fuel-poverty programme), receiving an ORP grant will not reduce your existing Nest-funded measures. However, you cannot receive duplicate funding for the same measure from both schemes. HMRC guidance confirms that energy-efficiency grants from government schemes are generally not taxable (HMRC, 2026).
If you are unsure how the grant might affect your specific benefits, contact your local council’s benefits team or a free advice service such as Citizens Advice Wales before accepting the grant offer.
whole house retrofit guide for Wales
Frequently Asked Questions
Up to £25,000 per home, with most projects averaging £15,000-£18,000 in 2025-2026 according to local authority reports. Households below the Welsh median income of £31,000 typically receive 100% funding from the Welsh Government.
Owner-occupiers in Wales with older, draughty homes and high energy bills. Eligibility is based on fuel poverty and energy performance as assessed by your local council, not the Welsh Government directly.
Whole-house measures including solid wall insulation, heat pumps, solar panels, and mechanical ventilation. The programme addresses building fabric first, then adds low-carbon heating and renewables per the Welsh Government's whole-house plan.
You cannot apply directly to the Welsh Government. Register interest through your local council's waiting list, which manages the project using approved contractors. The process includes a survey and can take several months.
Not always free, but grants cover 70-100% of costs depending on household income. Households earning below £31,000 typically get full funding, while higher-income households may pay up to 30% of the project cost.
