Grants for churches in 2026: what replaced the Listed Places of Worship scheme, and how to fund heating and solar

Church energy grants: key facts for 2026

Listed Places of Worship Grant Scheme: closed, and what replaced it

For years the Listed Places of Worship Grant Scheme (LPWGS) refunded VAT on repairs to listed places of worship. The House of Commons Library notes it provided VAT relief but didn't make grants. It is now closed. GOV.UK says the scheme "is no longer accepting applications from new or returning applicants", that all award decisions within the £23 million 2025-26 budget have been finalised, and that "there will be no further funding rounds".

England: the Places of Worship Renewal Fund

The replacement in England is the Places of Worship Renewal Fund (PWRF), funded by DCMS and delivered by Historic England. It's a capital grant scheme, not a VAT refund:

Can it pay for heating or solar? Only as a small part of a repair project. Historic England says grants can't be awarded for improvements and alterations alone. Its own examples of improvements that can sit inside a repair application include "new or improved heating to combat damp issues" and "the strengthening of roof structures to allow the fitting of solar panels". Energy audits can be included as project development costs.

Timing: both 2026 expression of interest rounds have closed (the second closed on 2 October 2026). In year one only, projects that started on or after 1 October 2025, finished or are due to finish by 30 September 2026, and lost expected match funding can apply for £10,000 to £50,000 by 31 December 2026. Watch Historic England for the next window.

Scotland, Wales and Northern Ireland

• Scotland: Historic Environment Scotland runs the Scotland's Places of Worship Fund, a pilot worth up to £1 million that refunds VAT on eligible repair, maintenance and conservation work to listed places of worship. It's first come, first served and open until 31 March 2027 or until the money runs out.
• Northern Ireland: the National Churches Trust runs repair grants of up to £50,000 for listed places of worship, funded by the Department for Communities.
• UK-wide: GOV.UK points places of worship to the National Lottery Heritage Fund, which funds all types of heritage project.

Grants for churches in 2026: who funds what

The Church of England's grants are for its own parishes. Other denominations should ask their own national or regional bodies, and every church can approach charitable trusts. Speak to your Net Zero Carbon Officer or Diocesan Environment Officer before applying to any Church of England fund.

Church heating: heat the people, not the building

Church heating is the biggest energy cost for most churches and the hardest to get right. The Church of England's heating guidance says its principles "start with people, not technology", and it asks five questions first: who are you heating, what happens in the building, when and for how long, where in the building, and which areas or objects need special care?

• Fix the fabric first. The guidance says repairing roofs and gutters, draught-proofing doors and windows and insulating pipes makes a building warmer and drier and cuts the heat needed.
• Protect historic interiors. Rapid swings in temperature or humidity can damage timber, organs and decoration. Get expert advice before changing how a historic church is heated.
• Plan the switch. The guidance calls electric heating powered by renewable energy a key long-term goal, but says change may need to be gradual, using zoning and hybrid set-ups on the way.
• Don't wait for hydrogen. The Church Buildings Council concludes hydrogen is "not likely to be practically and economically viable" for heating churches in the short and medium term, and says a "hydrogen-ready" boiler won't make a meaningful contribution to net zero.

For larger halls and multi-building sites, see commercial heat pumps. For heating at the vicarage or your own home, see heat pumps for homes.

Church heating grants: the Boiler Upgrade Scheme for church buildings

The main national church heating grant is the Boiler Upgrade Scheme (BUS). Ofgem's installer guidance for applications from 28 April 2026 says non-residential properties are eligible for air-to-water and ground source heat pumps, and gives "churches, community centres, and office spaces" as examples. Its property owner guidance says churches "may be eligible, subject to meeting wider eligibility requirements".

• The grant: The Boiler Upgrade Scheme isn't just for homes. It pays £7,500 towards an air or ground source heat pump in a small non-domestic building, for systems up to 45kWth (70kWth with more than one heat pump). Until March 2027, a building heated by oil or LPG with no mains gas connection can get an extra £1,500, so £9,000 in total. The scheme now runs to 2030.
• Not air-to-air: air-to-air heat pumps are for residential properties only, so they can't get a BUS grant in a church.
• What's being replaced: fossil fuel heating (gas, oil, LPG) or electric heating, but not an existing heat pump.
• Who signs: the BUS is installer-led. Where the building is owned by an organisation that isn't on Companies House, Ofgem needs a letter of authorisation: a trustee signs for a charity, and the religious leader of the place of worship signs where the church isn't a company or charity. For a Church of England parish, check with your diocese who holds the property.
• Where: England and Wales only.

Buildings registered for public religious worship and church halls are exempt from business rates, so rates don't come into the decision. For the scheme in detail, see our Boiler Upgrade Scheme guide.

Faculty, List A and List B: consents for church heating and solar

In the Church of England, most changes to a church need a faculty from the diocese. Since 1 July 2022, the Faculty Jurisdiction Rules have made some low-carbon work simpler and require every proposal to show it has had due regard to the Church Buildings Council's net zero guidance.

A faculty application for solar or a heat pump will usually need a statement of significance, a statement of needs, drawings and technical specifications, and for roof-mounted solar an engineering statement on the weight of the array and wind loading. The ecclesiastical exemption covers listed building control, not planning: the Church of England is clear it isn't exempt from planning permission or building regulations.

Other denominations with the ecclesiastical exemption run their own consent systems, and places of worship of other faiths use the normal listed building and planning route. Our charity and church solar guide explains the exemption in detail.

Solar panels for churches: funding and fit

Solar works best on a church that uses power through the week: a hall, an office, a café, a heat pump or a nursery. A church used mainly on Sundays exports much of its weekday output, so it earns Smart Export Guarantee payments rather than saving on bills.

• Pair solar with the heating plan. A heat pump or electric pew heaters add electrical load, which a solar roof can offset. Plan them together.
• Hidden roofs first. A south-facing aisle roof, a hall or a vestry is usually easier to get approved than the main nave.
• Fund it locally. Give to Go Green match funding, community share offers and charitable trusts are the usual routes. The Renewal Fund only helps with structural work to take panels as part of a repair project.
• Cost: DESNZ's official data puts 10-50kW solar at a median £1,262/kW installed (2025/26), including VAT where it applies. Church roofs, access, scaffolding and fixings for slate or lead often push costs up, so get a survey-based quote.

For the full church and charity solar guide, including the 0% VAT test and community energy, see charity solar panel grants.

0% VAT on church heat pumps, solar and insulation until March 2027

Most churches aren't VAT-registered, so VAT is a real cost. The Church of England's VAT guidance says a temporary zero rate applies to energy-saving materials "such as solar panels, heat pumps, and insulation, until 31 March 2027, provided the building is used entirely for charitable, non-business purposes".

• Business use matters. Where business use such as commercial lettings or a café is more than incidental, relief may be restricted or lost.
• Keep contracts separate. The guidance warns against combining energy-saving work with general repairs in one contract, which could make the standard rate apply to the whole project.
• Agree it before work starts. The Church of England says contractors must have the appropriate certification before applying the zero rate, and this should be agreed before work begins.
• After March 2027: HMRC's VAT Notice 708/6 sets 0% until 31 March 2027, then 5%. Projects that complete before then get the full saving.

Ordinary business premises pay 20% VAT on solar, batteries and heat pumps, which VAT-registered businesses can normally reclaim. The 0% rate is only for homes and buildings used solely for a relevant charitable purpose, and it runs to 31 March 2027. For the qualifying test in detail, see VAT relief on energy-saving materials.

The GBE Community Fund: the government's company, not us

Great British Energy, the government's publicly owned energy company (gbe.gov.uk), runs the GBE Community Fund. We are an independent guide with a similar name. We are not Great British Energy and we don't run or assess this fund.

• Who: legally constituted, incorporated community organisations in England, Wales or Northern Ireland, including registered charities, community benefit societies and community interest companies. Scotland is supported separately through Local Energy Scotland's CARES programmes.
• Stages: feasibility up to £40,000, development up to £100,000, and capital up to £3 million or 50% of project costs, from a £20 million fund.
• Ownership: projects must be at least 50% community owned when operating.
• Window: closes on 12 November 2026 at 11:55pm.

A church may be able to host a community-owned solar scheme on its roof or land, with a community energy group as the applicant. Check the full guidance on gbe.gov.uk before you apply.

How to get a church heating or solar project quoted

Before you ask for quotes

• Twelve months of gas, oil and electricity bills, and a note of when the building is actually used each week.
• Your quinquennial inspection report and any condition survey.
• The listing grade, whether you're in a conservation area, and who owns the building.
• A conversation with your DAC, archdeacon or Net Zero Carbon Officer (Church of England), or your denomination's buildings team.
• Any grant timetable you're working to, and the VAT position.

Questions to ask every installer

• Have you worked on churches like ours, including listed ones?
• Have you modelled our real pattern of use, and why this heating approach?
• Are you MCS certified for the heat pump or solar system, so the BUS grant and export payments are available?
• Will you supply the specifications and engineering information our faculty or planning application needs?
• How do you protect historic fabric, organs and interiors during work?

1. Send us the basics using the form. It takes two minutes.
2. One suitable installer contacts you for a survey. You won't be passed round a list.
3. Options and quote you can take to the PCC or trustees and your DAC.
4. Consents and grants: faculty or planning, BUS application through the installer, and any other funding.
5. Install and commission, around services, weddings and funerals.