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UK Retrofit Costs Explained 2025

Complete Guide to Home Energy Upgrade Costs

12 min read
~2,600 words
Updated February 2026
£1K to £50K+
Retrofit Range
£7,500
Heat Pump Grant
15% to 40%
Potential Bill Savings

Retrofitting your home to improve energy efficiency reduces bills, increases comfort, and prepares you for upcoming regulations. With rising energy costs and the October 2030 EPC requirements for landlords, understanding retrofit costs has never been more important.

This guide covers every major retrofit measure from simple draught proofing to whole house deep retrofit, with realistic costs, potential savings, and payback periods for UK homes in 2025.

The Fabric First Approach

Always insulate before upgrading heating systems. A well insulated home needs less heating, meaning smaller (cheaper) heat pumps and lower running costs. The order should be: loft insulation → wall insulation → draught proofing → windows → heating system → renewables.

Insulation

Heating Systems

Windows and Doors

Renewables

Controls and Quick Wins

Whole House Retrofit Packages

Combining measures often makes sense logistically and can improve overall performance.

Typical whole house retrofit package costs and impacts
PackageTypical CostEPC ImprovementAnnual Savings
Basic Package (loft, draught proofing, controls)£1,000 to £2,000+8 to 15 points£250 to £400
Standard Package (+ cavity walls, boiler)£5,000 to £10,000+15 to 25 points£400 to £700
Deep Retrofit (+ heat pump, solar)£25,000 to £45,000+30 to 50 points£800 to £1,500
Full Passivhaus Standard£50,000 to £100,000+A rating achievable£1,500+

Available Funding and Grants

Check what grants you qualify for before paying full price. Significant funding is available for many homeowners.

Boiler Upgrade Scheme (BUS)

Eligibility: Any homeowner, valid EPC, no previous grant

Applied for by installer. Check gov.uk for current availability and funding.

£7,500 for heat pump

ECO4 Scheme

Eligibility: Low income households, certain benefits

Covers insulation, heating, solar. Apply through energy suppliers.

Up to 100% of costs

Great British Insulation Scheme

Eligibility: Council tax bands A to D, EPC D to G

Cavity and loft insulation. Wider eligibility than ECO4.

Up to £2,000 to £4,000

Home Upgrade Grant (HUG2)

Eligibility: Off gas grid homes, low income areas. Scheme closed March 2025 — check gov.uk for successor programmes.

Administered by local authorities. Check availability.

Up to £25,000

0% VAT on Energy Saving Materials

Eligibility: All homeowners until 2027

Insulation, heat pumps, solar. Labour charged at standard rate.

20% saving on materials

Key Takeaways

Fabric first: insulate before upgrading heating systems
Loft insulation is best value: £300 to £600 for 5 to 10 EPC points
Heat pumps: £7,500 BUS grant makes them affordable
Solar PV: 7 to 12 year payback with SEG payments
Check ECO4 and GBIS grants before paying full price
Target EPC C minimum for future regulations and value

Calculate Your Retrofit Costs

Get a personalised estimate for upgrading your home's energy efficiency.

Use Retrofit Calculator

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Costs and savings are estimates based on typical UK properties. Actual results depend on property type, location, and usage patterns. Grant eligibility criteria may change.