Grants for energy efficient home improvements
How can government funding, energy suppliers and local authorities help landlords?
Government funding is available to reduce our impact on the environment, and energy suppliers and local authorities all provide grants to help save energy.
Landlords in Scotland can borrow up to £100,000 interest free with a Private Rented Sector Scotland Loan, which is funded by the Scottish Government to help landlords make energy efficiency improvements.
This scheme was introduced in April 2022 to encourage homeowners and landlords in England and Wales to scrap gas boilers and replace them with a renewable heating source.
The following grants (one per property) are available to help property owners with the upfront cost of installing low carbon heating technologies.
You can get one grant per property. Current grants are available for:
£7,500 towards an air source heat pump
£7,500 towards a ground source heat pump (including water source heat pumps and those on shared ground loops)
£5,000 towards a biomass boiler
Before you consider this option it is crucial to get a professional to carry out a heat loss calculations report on your property to work out the amount of heat needed to keep your property warm, for details see: www.jtannerproperties.co.uk.
The grants for heat pumps went up on 23 October 2023. If you applied before 23 October and your installer has not fitted your new heat pump yet, the Government advises you talk to them about cancelling your grant and reapplying to get the increased amount.
You need to use an MSC certified installer, who will apply for the grant on your behalf and then take it off their final bill.
For more information and to find out whether you might be eligible for a grant, visit GOV.UK and the Energy Saving Trust.
This is an obligation placed on energy companies to support energy efficiency improvements, including insulation and some heating improvements, but it’s only for low income and vulnerable households, or properties with an EPC of D or lower.
You can check whether you might qualify and see the latest offers from suppliers on the Simple Energy Advice website.
If you use solar panels or other renewable sources to generate electricity for your property, you can sign up to the Smart Export Guarantee tariff with an energy company. Under this scheme, you get paid for any excess electricity you generate and feed back into the National Grid.
You should be able to sign up to an SEG tariff as long as:
Your installation is 5MW capacity or less (50kW for micro-CHP) and MCS-certified
You have an electricity meter that can provide half-hourly readings (smart meter)
See the latest deals from suppliers on the Solar Energy UK website.
Here’s our round-up of all the things you can do to give green-minded tenants their dream home:
⬜ Make sure your property has an EPC rating of ‘E’ – and ideally ‘C’ or higher
⬜ Find out what you would need to do and how much it would cost to get it to an EPC C rating
⬜ Insulate the walls, floor and roof
⬜ Install double glazed windows
⬜ Install smart, eco-friendly appliances
⬜ Have low-flush toilets and water-saving shower heads
⬜ Upgrade the boiler
⬜ Install energy-efficient heating solutions
⬜ Upgrade all light bulbs to LED
⬜ Make the outdoor space eco-friendly
⬜ Provide a composting bin
Sustainability isn’t just about reducing our impact on the environment, it’s also cost-effective, making it a win-win for both you and your tenants.
For more details see: www.jtannerproperties.co.uk
The younger generation is more environmentally conscious and want a home to be as efficient as possible, both financially and in terms of saving the planet. Global warming is getting worse, and a lot of that comes from buildings and homes. With buildings making up 21% of our housing stock, it’s very important that landlords do as much as they can. We have a huge amount of power and can make an enormous difference if we want to, and I really think we should.
With the rental market as tight and competitive as ever, investing in energy efficiency and sustainability is a great way to make your property stand out from the crowd.
For practical advice to help you make informed decisions about how to future proof your home and attract the best tenants during a cost of living crisis, tune in to our podcast on navigating soaring energy bills and the cost of living crisis, with energy expert, Rik Smith.
Hopefully you’ve found our guide to eco-friendly property adaptations useful.
If you have any questions on anything that we’ve discussed or you have any suggestions for other things landlords can do, drop us a message on X or LinkedIn and let us know.
To keep up to date on the rules around energy efficiency in rental properties and other property news, sign up to our news partner, LandlordZONE.
And you can watch LandlordZONE’s webinar, ‘What’s next for energy efficiency in rental properties?’, hosted by LandlordZONE’s Head of Content, Nigel Lewis and guests, energy efficiency expert, James Tanner and Chris O’Donnell, Head of Data Analytics at Utilita, for more tips and advice on how to make your rental property more energy efficient.
