Green Homes Grant Scheme

Green Homes Grant scheme extension update

* Applications to the Green Homes Grant scheme closed on 31 March 2021.

If you applied for a voucher before the closing date, your application will still be processed. If you have already been issued a voucher, you can still use it to get the work done. You should redeem your voucher before it expires.

For more information please visit the government’s Green Homes Grant website(opens in a new window).

• Vouchers will still be worth the same under the extended scheme.
• Vouchers used under the scheme will be valid for three months after they are issued or until 31st March 2022 – whichever is sooner.

Overview

As part of an initiative to kick-start the UK economy, the government has announced the new Green Homes Grant scheme which is available to help homeowners improve the energy efficiency of their homes.

The scheme provides funding for several primary and secondary energy-efficient renovations to domestic properties. But to qualify for a secondary measure, you must first apply for a primary measure.

Sounds complicated, so let’s take a look at the scheme in more detail, then you can make a more informed decision about whether it is the right solution for you.

What is the Green Homes Grant?

The Green Homes Grant will allow homeowners to apply for up to £5,000 worth of vouchers which can be used to make energy-saving improvements to their property. The scheme is part of a wider £2bn investment in green technology and will allow an estimated 600,000 homes in the UK to benefit from lower heating and energy bills.

The scheme will pay for up to two-thirds of the cost of installing one of the approved measures. For example, if you install new loft insulation for £2,300, the grant will cover up to £1533. So homeowners will have to contribute to any improvements they make but they will benefit from lower energy bills in the long run.

Who is eligible for the new scheme?

The scheme is open to all owner-occupiers and landlords in England from late September. Homeowners in Scotland, Wales and Northern Ireland are NOT able to apply for vouchers but the government points out that similar schemes are available in these areas. Check your local government website for details.

Homeowners on low incomes may also be eligible for an enhanced voucher scheme which provides 100% funding of up to £10,000 per household. To qualify, low-income households should be owner-occupiers and receive certain benefits. The list of qualifying benefits is expected to be available before the scheme launches in late September.

What if you have already received a grant from the ECO scheme?

If you have already received a grant from the Energy Company Obligation ECO(opens in new windows) scheme, this does not prohibit you from receiving the Green Homes Grant. However, you cannot claim for the cost of measures which have already been installed under ECO. For example, if you received an ECO grant to install cavity wall insulation, you can still apply for a Green Homes Grant to improve your loft insulation.

Can you still apply for the Renewable Heat Incentive scheme?

The Domestic Renewable Heat Incentive (Domestic RHI) scheme provides financial incentives to homeowners who install green renewable energy systems. The scheme provides quarterly payments for seven years with payments based on the amount of renewable energy your system generates.

You can apply for both Domestic RHI and the Green Homes Grant, however, you must apply for the Green Homes Grant scheme first and then, if successful, notify Ofgem that you received funding from GHG when applying for Domestic RHI. The amount you received from GHG will then be deducted from your RHI payments.

Read our Renewable Heat Incentive Scheme Explained (opens in new window) for more information.

What energy-efficient technologies are supported?

The vouchers must be used to install at least one of the approved primary measures listed below (insulation, low carbon heating). Once you have committed to installing one of the primary measures you can then apply for a contribution towards a secondary measure.

However, the amount you receive for a secondary measure will be capped by the amount you received for the primary measure. For example, if you apply for £780 to install underfloor heating as a primary measure, you will receive a maximum of £780 for any secondary measure you install such as solar thermal panels.

The maximum funding for both measures combined must not exceed £5000.

Primary measures

Insulation:

• Cavity wall
• Solid wall
• Underfloor
• Loft insulation
• Flat roof
• Park home insulation
• Room in roof

Low carbon heating (Home must be suitably insulated):

• Air source heat pump
• Ground source heat pump
• Biomass pellet boilers
• Solar thermal

Secondary measures

Windows and doors:

• Draught proofing
• Double/triple glazing
• Secondary glazing
• Energy-efficient doors

Heating controls:

• Hot water tank insulation
• Hot water thermostats
• Smart heating controls (including zone control, delayed start thermostats and thermostatic radiator valves)

How to apply

Applications will open at the end of September 2020. Before applying you will need to complete a four-stage questionnaire on the government’s Simple Energy Advice website.

The questionnaire includes the following four-stage process:

• Check you are eligible for vouchers
• Check what improvements are suitable for your home
• Select the improvements you are interested in and get an estimate for how much they will cost
• Find accredited tradespeople in your area to obtain a quote

You can complete the questionnaire online here(opens in new window).

Once you have selected what improvements to make, you must obtain a quote from an MCS registered or Trustmark-approved tradesmen. This quote will then need to be approved before you receive funding. Information on how to do this will be made available during the application process.

How long does the Green Homes Grant Scheme run for?

The Green Homes Grant is scheduled to run from the end of September 2020 to 31st March 2022.

Is the Green Homes Grant Scheme available in Scotland, Wales and Northern Ireland?

The short answer is no, the scheme is only available to homeowners in England – however there are alternative money saving schemes available for homeowners outside of England.

You can find more information on the following websites

• For available schemes in Wales please check the Nest website (opens in new window)
• For available schemes in Scotland please check the Home Energy Scotland website (opens in new window)
• For available schemes in Nothern Ireland please check the NI Energy Advice website (opens in new window)

Should you apply for a Green Homes Grant?

Yes, if you meet the criteria you should make use of any funding the government provides to help reduce your carbon footprint and lower your energy bills. By applying for funding, you will also contribute towards the growth of the UK ‘green’ economy which will help to create skilled long-term jobs in the sector.

So you have nothing to lose and plenty to gain by applying for vouchers. You can start the application process by completing the online questionnaire here(opens in new window).