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Water Re-use Solutions: A new proposal for our Water Environmental Incentive Scheme from April 2026.
We're committed to supporting sustainable development and long-term regional water resilience. From April 2026, we’ll be expanding our Environmental Incentive Scheme to support sustainably built homes. The Tier 2 is being introduced in addition to the current Tier 1, focussing specifically on on-site developments utilising water re-use initiatives.
Our new Tier 2 offers further financial rewards for installing rainwater harvesting (RWH) or greywater recycling systems (GWR). Helping you reduce water consumption and improve water management in new housing developments.
What the Tier 2 Environmental Incentive Scheme provides:
- £2,000 per property for installing a qualifying Rainwater Harvesting or Greywater Recycling system
- An early adopter bonus of £1,000 per property for homes connecting in 2026/27 or 2027/28
- This means up to £3,000 per property through Tier 2 alone
- Combine with Tier 1 savings for a total of up to £3,500 per new home.
This is one of the largest environmental incentives available. Designed to help you design homes with efficient water use and great drainage practices, without increasing your build costs.
How do I qualify?
Eligible properties must be:
- New-build residential homes with a new water connection and infrastructure charge
- Fully fitted with an operational RWH or GWR system before audit
- Supported by standard installation and compliance documentation.
Scroll through the table below for more information.
| Rainwater Harvesting Systems | Greywater Recycling Systems |
| Minimum 3000 litre storage | Must capture water from showers and basins (as a minimum) |
| Must be the primary water source for all toilets | Treats a minimum of 50 litres a day |
| Designed to BS EN 16941-1: 2024 standard | Serves all toilets as the primary resource |
| Designed to BS EN 16941-2:2021/2024 | |
| Both inclusive of communal systems, as long as the requirements above are still met . | |
Why apply?
Aiming towards these standards, and applying for our Environment Incentive Schemes, makes water smart developments more achievable and rewarding. By taking part early, you’ll maximise the financial benefits too.
How to apply? Applications are open from April 2026.
Step 1: Supply us with the details of your rainwater harvesting and greywater recycling systems
Step 2: Our team will review and assess your eligibility
Step 3: If it's looking like the plot(s) meet the criteria, one of our Water Regulations team members will confirm this when they come to assess the system you have installed as part of the current process.
Step 4: If the plot(s) passes the audit, this will be passed to our Income Team to schedule you a payment of the incentive amount. If the plot(s) fails the audit, we'll come back out and reassess once amendments have been made. This will incur an additional charge and will take you back to step 3.
Need help or further information with your water application?
Call: 03456 066 087 (08:00 to 17:00 Monday to Friday)