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Where does the funding for insulation grants come from?

Insulation grants are funded by all UK Energy Suppliers with more than 50,000 customers (domestic households), these are British Gas, NPower, E.ON, EDF, Scottish Power and Scottish & Southern Energy.

Energy companies are contracted to provide funding as part of a wider obligation placed on them by the Government to reduce household emissions across the UK.

CERT, or Carbon Emissions Reduction Target, ensures the UK meets it’s statutory carbon reduction target by 2020. In providing assistance to households in the form of energy grants, significant reductions in CO2 emissions can be made, helping the country to meet this target.

As the most immediate and cost effective way to maximise energy efficiency in a home is through cavity wall and loft insulation, it is not suprising that 62% of CERT funding has been allocated to these. The Government has also now agreed to extend this funding to 2012.

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