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The 2026 Energy Landscape: Why This Year is Critical for Forest Row Homes

As we move into 2026, the landscape of government energy grants is shifting. Some schemes are ending, others are stabilising, and new opportunities are on the horizon. Here is your definitive guide to what funding is available right now and why 2026 is the "use it or lose it" year for many households in Forest Row.

If you have been waiting for the "right time" to upgrade your insulation, install a heat pump, or look at solar, the timeline has just tightened.

Here is the breakdown of the major UK grants and plans affecting us this year.


1. The "Cliff Edge": ECO4 Ends in March 2026

What is it? The Energy Company Obligation (ECO4) is the government's primary scheme for improving energy efficiency in low-income households or homes with low Energy Performance Certificate (EPC) ratings (bands D to G). It fully funds measures like cavity wall insulation, loft insulation, and boiler upgrades.

The 2026 Urgency: The current legislation for ECO4 ends on 31 March 2026. While the government has mooted a successor scheme under the "Warm Homes Plan," there is often a gap between one scheme ending and the new one starting. If you qualify, or if you know a neighbour who might, applications must be submitted immediately to ensure installers can finish the work before the March deadline.

  • Who is this for? Households on means-tested benefits OR those living in the least energy-efficient social housing.

  • The GBIS Exception: If you don't receive benefits but your home is in Council Tax bands A-D with an EPC of D-G, you may still qualify for the "Great British Insulation Scheme" (GBIS), which runs on a similar timeline.


2. The "Stable" Grant: Boiler Upgrade Scheme (BUS)

What is it? This is the big one for homeowners looking to move away from gas or oil. The government offers a flat grant of £7,500 towards the cost and installation of an air source heat pump or a ground source heat pump.

The 2026 Outlook: The good news is that funding for the BUS has been confirmed until 2028. However, demand is rising sharply. As gas prices fluctuate and the £7,500 grant makes heat pumps cost-competitive with new gas boilers, installer availability in East Sussex is tightening.

  • Fact: You do not need to be on benefits to claim this. It is open to almost all homeowners.

  • FRECL Advice: Don't wait until your boiler breaks in December. Plan the switch in spring/summer 2026 while installers have capacity.


3. The "Hidden" Grant: 0% VAT (Ending 2027)

What is it? It isn't a cheque in the post, but it is a massive saving. Currently, you pay 0% VAT on the installation of "Energy Saving Materials." This includes:

  • Solar Panels

  • Battery Storage (even when retrofitted to existing solar)

  • Heat Pumps

  • Insulation


The 2026 Urgency: This tax relief is currently legislated to end on 31 March 2027. That means 2026 is the final full calendar year where you are guaranteed to save 20% on these installations. On a typical £10,000 solar and battery system, that is a £2,000 saving that disappears if the VAT relief is not extended.


4. The Future: Great British Energy & The "Warm Homes Plan"

The new government has launched Great British Energy, a publicly owned company designed to drive clean power.


What does this mean for Forest Row? The strategy is moving towards "Area-Based" delivery. Instead of individual households fighting for grants, Local Authorities and Community Energy Groups (like us!) will be empowered to retrofit whole streets or neighbourhoods.

This is why we are launching the Forest Row Energy Register. To attract this new funding to our village, we need to prove our "readiness." We need to know who has solar, who has heat pumps, and who is desperate for insulation.


Your Action Plan for 2026

1. Audit Your Home (This Month) Before you spend a penny, see where your heat is going. Forest Row Energy has a Thermal Imaging Camera available for residents to borrow.

2. Check Your Supplier. The renewable energy market is full of cowboys. If you are considering Solar, Batteries, or Heat Pumps to take advantage of the 0% VAT or the £7,500 grant, use a trusted local installer.

3. Get on the Map: Help us bring the "Warm Homes" funding to Forest Row.

🔗 References & Sources

 
 
 

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