What the Water Companies Aren’t Telling You…

Did You Know That There Are a Number of Incentives Available From The Water Companies?

Your local water company might be keeping a secret from you, and it’s that some water companies in the UK offer incentives for rainwater harvesting, of course there is red tape to jump through.

Our Sales and Technical team member Tim Chantrell has been exploring these incentives to help you save money on your water connection.

This blog will explain the options available to you and hopefully help you save money on your project.

Firstly, Why Do We Need Rainwater Harvesting?

Believe it or not, water resources in the UK are under extreme pressure. On top of this, the government has committed to building 1.5 million homes in the next five years, pushing demand for water and wastewater services to an unsustainable level.

This growth also risks negatively impacting the wider environment which is already suffering from more frequent flooding, droughts, and pollution. Due to these factors, England is expected to have a water deficit of 4.8 billion litres per day and 8 million homes at significant flood risk by 2050 according to the Environment Agency.

What Are Environmental Incentives?

Building regulations require new homes to have an estimated usage of less than 125 litres per person per day (l/p/d), or 110 l/p/d in some areas, calculated based on the installation of water efficient fittings and fixed appliances.

Under a common framework, all English water companies now offer environmental incentive payments for developers to build homes that consume less water than that required by building regulations. Many environmental incentive offerings are tiered, providing progressively larger payments for decreased water consumption and reduced discharge to the sewer from new homes.

To receive the minimum payment, applicants must complete the fittings table, demonstrating the fittings used do not exceed the maximum capacity/flow rates for each fitting installed measured at 3 bar pressure. The property must have a WC, shower, bath, basin taps and sink taps but dishwashers and washing machines will only be assessed if installed.

Larger payments are offered for the installation of systems which decrease water consumption and surface water discharge even further, e.g. water reuse systems and permeable surfaces.

There are 16 Water supply companies in the UK – Frustratingly only 4 Water Companies list Rainwater Harvesting as an actual component of the Environmental Incentive.  Although Rainwater Harvesting will aid with hitting the litres/per/person/per/day.

There also Environmental Incentives for sewage and waste water – on offer with some companies adding Rainwater Harvesting element to this incentive

Where Can You Find These Incentives?

The best document that we have found that details all the water company and waste water companies incentives has been published by ‘Enabling Water Smart Communities’ and the details can be found here: https://www.ewsc.org.uk/project-reports/summary-of-water-sector-environmental-incentives-2025-2026

While the common framework for environmental incentives has just been introduced, some companies have had these incentives available for years.

Unfortunately, uptake has been low and awareness among key stakeholders like local authorities is minimal. For example, 88% of local authority officers responsible for water in Thames Water’s area were unaware that these incentives existed.

Furthermore, only one local authority is currently promoting Thames Water’s environmental incentives to developers through their planning process.

The discounts listed are available from the 1st of April 2025. The values may be updated each year.

This document is intended to provide a high-level overview of the environmental incentives available to developers. Please consult the developer charges section of each company’s website to get the most complete and accurate information on environmental incentives including eligibility and terms and conditions.

 Application: Developers/Self Builders apply for the incentive when making their initial water connection application.

If you would like to know more about Rainwater Harvesting and how you can help protect the water supply of the future then please use our contact form.

Alternatively you could call us on 01733 405111.