Low Carbon Buildings Programme: funding

Low Carbon Buildings Programme: Phase 2

Key information

Funding area:
UK wide
Open for applications
Next Application Deadline:

Full scheme details

Start date:



Charities and community organisations are being encouraged to apply for grants through the Low Carbon Buildings Programme.

Phase 2 of the Low Carbon Buildings Programme (LCBP2) supports the installation of microgeneration technologies for organisations in the UK public and not-for-profit sectors. Grants are available for the purchase and installation of: solar thermal hot water, solar photovoltaics, wind turbines, ground source heat pumps, automated wood pellet stoves and wood fuelled boiler systems. The LCBP grants are managed by Building Research Establishment Ltd (BRE) on behalf of the Department for Business, Enterprise and Regulatory Reform (BERR).

Total Fund Value:

£ 50,000,000

Grant Value – maximum:

£ 1,000,000

Grant Value – notes:

Organisations can apply for between 30% and 50% of the eligible costs for installing microgeneration technologies, over one year.

Extended Description:

Grants are available for the purchase and installation of any combination of the microgeneration technologies, at one or more properties within a site owned or leased by the applicant.

Types of microgeneration technologies that can be applied for include:

  • solar thermal hot water (30%);
  • solar photovoltaics (50%);
  • wind turbines (30%);
  • ground source heat pumps (35%);
  • automated wood pellet stoves (35%);
  • wood fuelled boiler systems (35%).

The percentage (%) indicates the maximum amount of eligible costs that can be applied for for each technology. Further information and a list of eligble costs for each technology is available in the Guidance Notes, which can be downloaded at the bottom of this page.

The supply and installation of microgeneration technologies will be carried out by “Framework Suppliers” (opens new window), who have been appointed by and are contracted to the BERR.

Latest Information:

New grant levels:
From 1st April 2008, organisations can apply for 50% of the cost for installing approved microgeneration technologies.

For more information, go to the Low Carbon Buildings website (opens new window).

Further Information:

The DEFRA scheme Bio-Energy Capital Grants supports the installation of biomass-fuelled heat and combined heat and power (CHP) projects in the industrial, commercial and community sectors. The scheme is now closed and is due to re-open in Spring.

See the ‘Appendix’ heading at the bottom of this page for a link to the scheme details.


LCBP2 grants cannot be used for:

  • work carried out prior to the grant offer letter;
  • refurbished equipment;
  • DIY installations;
  • payment of VAT;
  • warranty costs;
  • non-associated costs e.g. roofing works outside the direct installation of the microgeneration system, vandal covers, asbestos removal, upgrades to the ring main, new radiators or other elements of the heat distribution system.

Please note: applicants are not entitled to apply for a grant if they receive any other funding from the national government or devolved administrations, in relation to the proposed technology and/or its installation at the property.

For further details, see the Terms and Conditions (opens new window).

Key Criteria:

The following general conditions of the scheme apply to all applications:

  • supply and installation of the microgeneration technologies must be carried out by a certificated installer which could be either the Framework Suppliers (opens new window) – or one of their sub contracted installers;
  • technologies must be chosen from the LCBP2 Product List (opens new window); all these are Certificated Products;
  • only public sector and not-for-profit organisations are eligible. E.g. Local authorities, housing associations and trusts, hospitals, schools, universities and colleges, libraries, public service organisations, registered charities, environmental trusts or local community groups governed by written constitution;

Grants will be available for:

  • installations of up to max 50kW electricity and 45kW heat per property;
  • a maximum of three eligible technologies for each proposed building. Requests for additional technologies need to be agreed by BRE and BERR;
  • the supply and installation of a renewable energy scheme at a permanent building located in the United Kingdom (excluding Isle of Man and the Channel Islands).
Eligible Expenditure:

Organisations can apply for between 30% and 50% of the eligible costs of installing microgeneration technologies. In general only costs directly related to the installed equipment and work are eligible. A list of eligible costs is set out in the Terms and Conditions (opens new window).

Application Procedure:

Applications for the LCBP2 are accepted on an ongoing basis. Before making an application, you should ensure that you have read the guidance notes thoroughly, investigated the microgeneration options for your project and received all necessary quotations and advice from a Framework Supplier.

There is a two-stage application process. The applicant must fill in a general application form and a second form, specific to the technology being applied for.

Applications should be made on-line at: www.lowcarbonbuildingsphase2.org.uk (opens new window). If for any reason this is not possible, a paper application may be downloaded and printed out from: www.lowcarbonbuildingsphase2.org.uk (opens new window).

Applicants are required to send copies of installer quotations and proof of not-for-profit status. For on-line applicants, a password-protected folder is made available for uploading these documents. If applying by post, these documents must be provided on CD-ROM or floppy disk.

The application will be assessed and the applicant contacted with the decision within 5-7 working days. Grant applications over £100,000 may require more detailed assessments, and therefore results may take longer.

If you have an enquiry about Phase 2 of the Low Carbon Buildings Programme, phone: 08704 23 23 13, or email: info@lcbpphase2.org.uk (opens new window).

Contact Information:

Low Carbon Buildings Programme – Phase 2
c/o BRE
Building 17
WD25 9XX

08704 23 23 13

Documents and Links

Biomass for Heat Bio-energy Capital Grants Scheme: Biomass for Heat

LCBP2 Framework Suppliers LCBP2 Framework Suppliers

LCBP2 Product List LCBP2 Product List

Application Form

Application Form Application Form


LCBP2 Guidance Notes LCBP2 Guidance Notes


Terms and Conditions Terms and Conditions

Useful Links

BERR’s microgeneration homepage BERR’s microgeneration homepage

Community Renewables Initiative Community Renewables Initiative

Carbon Trust Carbon Trust

Energy Saving Trust Energy Saving Trust

Micropower Council Micropower Council

Biomass fuel suppliers Biomass fuel suppliers

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4 Responses to Low Carbon Buildings Programme: funding

  1. the Grit says:

    Hi Matt,

    Dang, and I thought our Government was hard to deal with. Still, I guess un-needed bureaucrats and lawyers need to make a living too. Unfortunately.

    the Grit

  2. matt says:

    Oh I’ve been through the process for solar grants and I’m now doing so for lottery money for our local park for new play equipment. Believe me, it’s so bureaucratic it’s criminal and one does wonder what our taxes are actually being spent on when we have to raise monies for our local park for our kids.

    But look at it this way Grit, the process shown within the post above is so rigorous that most people won’t have a chance. Only those folk who have an organisation supporting them in administering their bid will have some chance.

    Often a national NGO does this support work and as a result of this extra work these NGOs are themselves turning into bureaucracies! Not good in my opinion but there is that balance that needs to be struck when giving out tax payer’s monies.

    Oh and btw, working within government is about the safest place to be at the moment. 🙂 Let us not forget, it was the real estate men and the bankers that got our economies into this mess.

  3. the Grit says:

    Hi Matt,

    Yeah, I actually used to be a Government employee, so I can testify as to how safe the job is, which is something that desperately needs to be changed. Heck, one guy I worked with used the police computer system to issue an arrest warrant on his neighbor (who he had some dispute with,) resulting in said neighbor’s false arrest and several million dollars of legal fees and punitive damages to the local Government. The maximum penalty for this act available under our Civil Service Code was two weeks suspension without pay. Fortunately, close examination of the guy’s application for employment turned up a discrepancy, and they could fire him for that.

    I sort of see your point about NGOs, but I’m still thinking that we would get better value for our tax dollars without all the dead weight.

    On the financial crisis/bank failure/ real estate mess, keep in mind that, and you can think our liberals in Government for this, the fundamental problems were an insistence by our Congress that our banks issue loans to high risk customers in the name of providing affordable public housing, and a failure of those same officials to keep an eye on the mess they made. Oh, and it didn’t help that all of our Presidential candidates spent the last two years talking about how bad our economy was in an effort to get elected. Allow me to take this opportunity to apologize on behalf of all of US for screwing all of you. On the other hand, I’d also point out that, as said in the great movie Animal House, y’all screwed up; you trusted us 🙂

    Hoping better times are ahead,
    the Grit

  4. matt says:

    No Grit, it was the capitalists that screwed up this time, not those liberal socialists. You just going to have to accept that. 🙂

    Anyway, we’re off topic.

Comments are closed.