Funding programme - Low carbon building programme - Programme funding - Phase 1

Two streams of grants are available under Phase 1:

Stream 1: for householders and community organisations.

Householders £6.5 million
Communities £4 million
Total Stream one funding£10.5 million

For more information about the grants available and eligibility criteria for LCBP Stream 1, visit the FAQs sections on the DTI Low Carbon Buildings Programme website:

Stream two: for medium and large microgeneration projects by public, not for profit and commercial organisations.

Stream 2A £6 million
Stream 2B £12 million
Total Stream two funding£18 million

Stream 2A – to be allocated over seven funding rounds (and one reserve round) Maximum grant of £100k or 40-50% of total costs (excl. VAT). There will be quarterly deadlines for stream 2A applications.

Stream 2A is most suitable where relatively small changes are planned to an existing building or where the planned new building will be smaller than 1,000 m2; it would also be suitable where time is of more importance than achieving a very low carbon building.

Stream 2B – to be allocated over three funding rounds (and one reserve round) Maximum grant of £1m or 40-50% of total costs (excl. VAT). Deadlines for applications will be twice a year.

Stream 2B is more robust and takes a longer due to a two stage process but the outcome should be an exemplar low carbon building.

For more information about the grants available and eligibility criteria for LCBP stream 2, visit the FAQs sections on the DTI Low Carbon Buildings Programme website:

LCBP Phase 1 Microgeneration technology grant funding

The following grants are available under LCBP Phase 1 for each accredited microgeneration technology.

Technology % Grant available
Solar photovoltaics Maximum £3,000 per kWp installed, up to a maximum of £15,000 subject to an overall 50% limit of the installed cost (exclusive of VAT)
Wind turbines Maximum £1,000 per kW installed, up to a maximum of £5,000 subject to an overall 30% limit of the installed cost (exclusive of VAT)
Small hydro Maximum £1,000 per kW installed, up to a maximum of £5,000 subject to an overall 30% limit of the installed cost (exclusive of VAT)
Solar thermal hot water Maximum £400 regardless of size subject to an overall 30% limit (exclusive of VAT)
Heat pumps

Ground / water / air source
Maximum £1,200 regardless of size subject to an overall 30% limit (exclusive of VAT)
Bio-energy

1.Room Heater/Stoves automated wood pellet feed

2. Wood fuelled boiler systems
Maximum £600 regardless of size subject to an overall 20% limit (exclusive of VAT)

Maximum £1,500 regardless of size subject to an overall 30% limit (exclusive of VAT)
Renewable CHP Grant levels to be defined
MicroCHP (Combined heat and power) Grant levels to be defined
Fuel cells Grant levels to be defined

In order to qualify for grant assistance, a number of energy efficiency measures must already by installed (where practical), including loft insulation, cavity wall insulation, low energy lightbulbs and heating system controls.

It should be noted that only accredited products installed by LCBP accredited installers are able to attract grant funding. It is important that a grant offer letter is received before installation commences.