As water scarcity becomes an increasingly important issue across the UK, rainwater harvesting and greywater recycling offer practical ways to reduce mains water consumption and support more sustainable water management. For businesses, housing developers and other organisations, grants and financial incentives can also help make investing in water reuse systems more accessible.
Rainwater harvesting involves collecting and storing rainwater for reuse in applications such as toilet flushing, garden irrigation and vehicle washing.
In non-household buildings, rainwater reuse can reduce water consumption by up to 75%, while residential systems can help households save approximately 25 litres of water per person per day.
To support organisations considering water reuse, this guide provides a complete overview of the funding opportunities and financial incentives available through UK water companies.
Grants for Non-Household Properties
Schools, offices, warehouses, leisure facilities and other commercial buildings may be eligible for water efficiency funding through their local water company. These schemes can provide financial support for projects that improve water efficiency and encourage the adoption of water reuse technologies.
How to Apply for Business Water Efficiency Funding
The first step is to identify the water company responsible for your premises. You can then visit the provider’s website to review its current funding schemes, eligibility requirements and application process.
Stormsaver can support businesses and organisations by providing information and costing for suitable water reuse equipment. Speaking to our experts at an early stage can help you understand the costs involved.
Incentives for Housing Developers
Housing developers can access environmental incentives when incorporating water efficiency measures into new residential developments. Some of these incentives include the provision of rainwater harvesting and greywater recycling
The value of the incentive can vary significantly between water companies.
The following overview covers environmental incentives offered by water companies for the 2026/2027 charging period. It also includes incentives that are not directly related to water reuse, providing a broader picture of the financial support available for improving water efficiency in new developments.
How to Apply for Developer Incentives
Developers should consult the relevant water company’s official guidance to confirm the available incentives, eligibility requirements and application procedures.
| Water Company | Incentive Tier 1 | Incentive Tier 2 | Incentive Tier 3 | Information | Link to water company website |
| Severn Trent Water | £250 per new connection for achieving 100 l/p/d | £300 per new connection for achieving 90 l/p/d | £350 per new connection for achieving 85 l/p/d | No specific water reuse incentive available. | https://www.stwater.co.uk/building-and-developing/building-sustainable-homes/environmental-incentive-scheme/water-efficiency-incentives/ |
| Anglian Water | £500 per new connection for achieving 90 l/p/d | £2,000 per new connection which has a rainwater harvesting or greywater recycling installed | An additional early adopter incentive for developers who have water reuse installed (£1,000), this totals £3,500 in total. | https://www.anglianwater.co.uk/developing/our-charges/environmental-incentive-scheme | |
| Affinity Water | £127 per new connection for achieving 100 l/p/d | £590 per new connection for achieving 90 l/p/d | £2163 per new connection for achieving 85 l/p/d | £2880 per new connection is available for achieving water neutrality (water reuse likely to be required). | https://www.affinitywater.co.uk/developing/eicf |
| Thames Water | £400 per new connection for achieving 110 l/p/d | £2500 per new connections with rainwater harvesting or greywater recycling installed | £3200 per new connection for achieving water neutrality (water reuse likely to be required) | https://www.thameswater.co.uk/help/home-improvements/how-to-install-a-new-water-connection/help-with-water-connection | |
| Northumbria Water | £425 per new connection for achieving 95 l/p/d | No specific water reuse incentive available. | https://www.nwl.co.uk/developers/large-developer/water-connection/ | ||
| Essex and Suffolk Water | £900 per new connection for achieving 95 l/p/d | No specific water reuse incentive available. | https://www.nwl.co.uk/developers/large-developer/water-connection/ | ||
| United Utilities | £172 per new connection for achieving 100 l/p/d | £664 per new connection for achieving water neutrality (water reuse likely to be required) | No specific water reuse incentive available. | https://www.unitedutilities.com/builders-developers/your-development/environmental-incentives-scheme/ | |
| Southern Water | £250 per new connection for achieving 100 l/p/d | £800 per connection for installing water reuse | https://www.southernwater.co.uk/building-and-developing/ | ||
| Yorkshire Water | £200 per new connection for achieving 100 l/p/d | No specific water reuse incentive available. | https://www.yorkshirewater.com/developers/environmental-incentives-and-credits/ | ||
| South West Water | £177 per new connection for achieving 100 l/p/d | £354 per new connection for achieving 90 l/p/d | £382 per new connection for having rainwater harvesting installed or £1453 per new connection for having greywater recycling installed | https://www.southwestwater.co.uk/building-and-development/services/charging-arrangements | |
| Wessex Water | £100 per new connection for achieving 100 l/p/d | No specific water reuse incentive available. | https://developerservices.wessexwater.co.uk/building-sustainable-homes | ||
| South Staffs and Cambridge Water | £240 per new connection for achieving 100 l/p/d | £360 per new connection for achieving 80 l/p/d | £480 per new connection for achieving 60 l/p/d | https://www.south-staffs-water.co.uk/developer/water-efficiency/ | |
| Portsmouth Water | £145 per new connection for achieving 100 l/p/d | https://developers.portsmouthwater.co.uk/environmental-incentives/ |
How Stormsaver Can Help
Stormsaver can help businesses, organisations and housing developers explore suitable rainwater harvesting and greywater recycling solutions, alongside the costs of the required equipment.
Whether you are planning a new housing development or looking to improve water efficiency in an existing commercial building, discussing your project at an early stage can help you understand the available options and plan your next steps.
