Home Upgrade Grant (HUG2): Solar & Heating for Off-Gas Homes
HUG2 provided up to £10,000 in grants for off-gas-grid homes in England — covering solar panels, heat pumps, and insulation. The scheme ended in March 2025 and has been replaced by the Warm Homes Local Grant. Here's everything you need to know, and what to apply for now.
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📋 HUG2 Update — March 2025
HUG2 officially ended in March 2025. If you were hoping to apply, the replacement programme is the Warm Homes Local Grant, delivered through your local council. It covers the same measures — solar panels, heat pumps, insulation — for similar qualifying households. Contact your council for current availability in your area.
Read the Warm Homes Plan guide →HUG2 at a Glance
What Was the Home Upgrade Grant Phase 2?
The Home Upgrade Grant Phase 2 (HUG2) ran from April 2023 to March 2025 and targeted one of the most energy-vulnerable groups in England: lower-income households not connected to the mains gas network. With approximately 4 million UK homes off-gas-grid — typically rural properties, older housing stock, and properties in more remote areas — these households faced disproportionately high heating costs.
Rather than using energy suppliers as delivery partners (as ECO4 and GBIS do), HUG2 was administered through Local Energy Hubs — regional bodies that distributed funding to local councils, who then managed applications and installations in their area. This approach allowed more flexible targeting of rural and hard-to-treat homes.
HUG2 was Phase 2 of the broader Home Upgrade Grant programme; Phase 1 ran in 2022–2023. Together they represent the government's targeted response to fuel poverty in off-gas-grid communities, a commitment that continues under the Warm Homes Plan from 2025.
Who Qualified for HUG2?
What Did HUG2 Fund?
HUG2 took a whole-house approach — an assessor would recommend the best combination of measures for the specific property, up to the £10,000 maximum grant value. Eligible measures included:
Rooftop solar — particularly valuable for off-gas homes with high electricity costs from storage heaters. Typically a 3–4kWp system.
Replacing oil or LPG boiler with an ASHP. Works especially well combined with solar panels.
For properties with land for ground loops. Highly efficient but higher installation cost.
Heats hot water using solar energy — complementary to solar PV.
Standard 270mm mineral wool. Often combined with solar to maximise impact.
Cavity wall or solid wall insulation depending on construction type.
Insulating the floor to prevent heat loss — particularly important for older homes.
HUG2 Has Ended — What to Apply for Now
If you are an off-gas-grid homeowner looking for grant support in 2025 or 2026, HUG2 has been replaced by:
The direct HUG2 successor, delivered through local councils. Same target group (lower-income, poor EPC), same measures (solar, heat pumps, insulation), and specifically includes off-gas-grid homes. Contact your local council to register interest.
If you receive qualifying benefits (Universal Credit, Pension Credit, etc.) ECO4 may still be available. ECO4 covers solar panels, heat pumps, and insulation at no cost for eligible households. Runs to March 2026.
If your priority is replacing an oil or LPG boiler with a heat pump, BUS provides £7,500 with no income test. As an off-gas-grid homeowner, you're a natural fit. Runs until March 2028.
Frequently Asked Questions
What is HUG2 (Home Upgrade Grant Phase 2)?
The Home Upgrade Grant Phase 2 (HUG2) was a UK government scheme providing grants of up to £10,000 to lower-income households in England that are not connected to the mains gas grid. It ran from April 2023 to March 2025. HUG2 was specifically designed to address the higher energy costs faced by off-gas-grid households — who often rely on oil, LPG, or electric heating — by funding solar panels, insulation, heat pumps, and solar thermal systems. Delivery was managed through local councils rather than energy suppliers.
What does "off-gas-grid" mean?
An off-gas-grid property is one that is not connected to the mains natural gas network. These homes heat using oil boilers, LPG (liquid petroleum gas) boilers, electric storage heaters, solid fuel stoves, or direct electric heating. Off-gas-grid homes typically have higher heating bills than gas-heated homes — which is why HUG2 targeted them specifically. You can check whether your postcode has mains gas access using the National Grid's Find My Supplier tool.
Did HUG2 cover solar panels?
Yes — solar PV panels were one of the primary eligible measures under HUG2. For an off-gas-grid home, solar panels are particularly valuable: they reduce your electricity costs (which are higher per unit than gas), and any surplus can be sold via the Smart Export Guarantee. Other eligible measures included air source heat pumps, ground source heat pumps, solar thermal, loft insulation, cavity wall insulation, solid wall insulation, and underfloor insulation.
Has HUG2 ended? What replaces it?
HUG2 formally ended in March 2025. The successor for off-gas-grid households is the Warm Homes Local Grant, which launched through local councils from 2025 as part of the wider Warm Homes Plan. The Warm Homes Local Grant covers similar measures to HUG2 (solar, heat pumps, insulation) and also targets lower-income households. If you are an off-gas-grid homeowner looking for grant support in 2025–26, contact your local council about the Warm Homes Local Grant.
What was the income threshold for HUG2?
HUG2 was available to households with a combined income below £36,000 per year. Alternatively, households receiving specific means-tested benefits (Universal Credit, Pension Credit, Housing Benefit, Child Tax Credit, Working Tax Credit) qualified regardless of income level. Properties had to have an EPC rating of D, E, F, or G, with lower-rated properties (E, F, G) receiving higher priority for available funding.
How did HUG2 work through local councils?
Unlike ECO4 and GBIS which operated through energy suppliers, HUG2 was delivered via local authority partnerships. Central government allocated funding to Local Energy Hubs (regional bodies), which then distributed it to individual local councils. Homeowners applied to their council directly, not to an energy supplier. Each council had its own application portal and waiting list. This structure continues with the Warm Homes Local Grant.
Can I still get a grant for my off-gas-grid home in 2026?
Yes — via the Warm Homes Local Grant. Contact your local council and ask specifically about off-gas-grid properties. Given the higher energy costs faced by these households, they typically remain a priority group. Some areas also have Local Authority Delivery (LAD) scheme funding that continues to target rural and off-gas-grid homes. Use the Simple Energy Advice service (simpleenergyadvice.org.uk) to find what is currently available in your area.
Related Guides & Tools
Sources
DESNZ Home Upgrade Grant Phase 2 guidance (gov.uk/government/schemes); Local Energy Hubs HUG2 delivery framework; Simple Energy Advice (simpleenergyadvice.org.uk); DESNZ Warm Homes Plan consultation (2025).