Green Homes Grant

Key takeaways

• The Green Homes Grant scheme, which closed to new applications on 31 March 2021, aimed to improve energy efficiency in homes across England

• The vouchers covered up to £5,000 (or £10,000 for certain low-income households) for energy efficiency upgrades

• Owner-occupiers, landlords, long-term leaseholders, and those in shared ownership in England could apply for this grant

• Be sure to check updates from the Department for Energy Security and Net Zero and the Department for Business, Energy & Industrial Strategy

NB: The Green Homes Grant scheme is no longer running

The Green Homes Grant scheme officially closed to new applications on 31 March 2021, and vouchers can no longer be redeemed.

If you’re looking for current energy-saving grants or schemes to improve the energy efficiency of your home, your best bet is to check the latest updates from the Department for Energy Security and Net Zero and the Department for Business, Energy & Industrial Strategy, as they may have other initiatives following the Green Homes Grant.

What the Green Homes Grant offered

In July 2020, the UK government unveiled the Green Homes Grant, a state-led initiative to enhance the energy efficiency of homes across England.

With a substantial budget of £2 billion, the scheme aimed to reach an ambitious target of improving 600,000 homes.

This move was not only a leap towards a greener future but also a strategy to alleviate energy costs for many households and help reduce the number of people who cannot afford to heat their homes.

The underlying objective of the Green Homes Grant was to foster the adoption of low-carbon heating systems.

By doing so, the government hoped to make a significant dent in energy bills and tackle the persistent issue of fuel poverty that affects numerous families across the country.

What was the Green Homes Grant?

The Green Homes Grant was a significant step by the government to help homeowners make their properties more energy-efficient. It was a one-off opportunity that could lead to substantial savings on energy bills and contribute to the broader goal of reducing carbon emissions.

Homeowners were given vouchers that act as a financial catalyst, encouraging them to engage with registered tradespeople to carry out energy efficiency improvements in their homes.

This initiative not only benefited the homeowners but also stimulated the green sector of the economy by creating demand for eco-friendly services.

Although the Green Hones Grant is no longer available, people on low incomes and who are deemed to be in 'fuel poverty' can still get financial help with energy-saving home improvements via the the Energy Company Obligation scheme.

How much were the vouchers for?

The vouchers provided by the Green Homes Grant could be quite generous. They covered up to £5,000 or two-thirds of the cost of eligible improvements, including the expenses of labour, materials, and VAT.

For example, a homeowner looking to get double-glazing work done on their property, which might cost around £6,000, could be eligible for a grant of £4,000, significantly reducing the financial burden.

Furthermore, certain individuals on benefits could qualify for even more substantial support, with grants available up to £10,000, potentially covering the entire cost of the improvements.

Who could receive the £10,000 grants?

The more substantial grants of up to £10,000 were reserved for those in a particular financial bracket.

To be eligible household income was a key factor. For instance, recipients could qualify if they were on income-based disability benefits and lived in a home they owned.

You could also qualify for larger grants if you were on specific benefits such as universal credit, child tax credit, housing benefit, income support, or the disability living allowance.

This ensured that the support is targeted towards low income households who could benefit the most from reduced energy bills.

It's important to note that landlords could not claim the £10,000 grants, but they were able to claim smaller amounts.

What type of home improvements did the Green Homes Grant cover?

The Green Homes Grant was designed with a focus on new installations that improve energy efficiency, rather than replacing existing eco-measures.

The voucher could be applied to a wide array of improvements, ensuring that many aspects of a home's energy efficiency could be enhanced.

Insulation

• Solid wall insulation

• Cavity wall insulation

• Under-floor insulation

• Loft insulation

• Flat roof insulation

• Pitched roof insulation

• Room in roof insulation

• Insulating a park home

Low-carbon heating

• Air source heat pump

• Ground source heat pump

• Solar thermal

• Biomass boiler

• Hybrid heat pump

Secondary measures could also be covered by the vouchers, provided that primary measures like those listed above were already in place.

However, the grant for secondary measures could not exceed the amount granted for primary measures.

Applicants had the flexibility to apply for both primary and secondary measures at the same time, but primary measures had to be installed first.

The grant was not applicable for like-for-like replacements but was available for add-ons that enhanced insulation or draught proofing.

Windows and doors

• Draught proofing

• Double or triple glazing (replacing single glazing)

• Secondary glazing (in addition to single glazing)

• Energy-efficient replacement doors (replacing pre-2002 doors)

Heating controls and insulation

• Hot-water tank thermostat

• Hot-water tank insulation

Who did the Green Homes Grant scheme apply to?

The Green Homes Grant was accessible to a wide range of residents in England, including owner-occupiers, landlords, long-term leaseholders, and those in shared ownership.

However, the scheme did not extend to new-build properties or commercial premises; it was exclusively for existing homes.

Residents of Scotland, Wales, and Northern Ireland weren't left out, as they had access to similar schemes tailored to their regions.

Those in Scotland, Wales and Northern Ireland who were also receiving benefits could look to Warmer Homes Scheme (Scotland), Nest (Wales) and Affordable Warmth Scheme (Northern Ireland).

As well as having to meet the criteria listed above, you would also have been barred from getting the Green Homes Grant if you'd already received a grant from your local authority under the Local Authority Delivery Scheme

How did I apply for the Green Homes Grant?

Applying for the Green Homes Grant was a straightforward process:

1. Check eligibility on the SimpleEnergyAdvice website. This showed you what you could get and listed local tradespeople.

2. Obtain quotes from registered tradespeople.

3. Apply for vouchers on the gov.uk website.

The government recommended obtaining at least three quotes to ensure competitiveness, and installers often requested a deposit, which should not have exceeded the homeowner's contribution.

The application required details such as the names and dates of birth of the property owner and any benefit-receiving resident, a quote from a registered tradesperson, and the tradesperson's TrustMark license number.

Successful applicants received vouchers via email, and the government paid the voucher value directly to the installer.

Vouchers were sent out starting November, and all work had to be completed by March 31, 2021.

How do I know what green home improvements my home needs?

Before diving into home improvements, it's wise to seek advice on what would be most beneficial for your home's energy efficiency and heating.

The Simple Energy Advice (SEA) website can provide guidance on suitable improvements. Additionally, your property’s Energy Performance Certificate (EPC) or advice from a retrofit assessor can offer valuable insights.

Could I get new windows with the Green Homes Grant?

New windows were indeed covered by the Green Homes Grant, but with a caveat. They had to be part of a larger project that included insulation or low-carbon heating and had to be replacing single glazing.

Were boilers included in the Green Homes Grant?

The Green Homes Grant did include certain types of boilers under its low-carbon heating options.

Biomass boilers, which utilise biological material instead of fossil fuels, were part of the scheme.

Additionally, renewable heating systems such as air source or ground source heat pumps and solar thermal were available through the grant.

How else can I save money on my energy bills?

The Green Homes Grant might have ended, but there are other ways to reduce energy bills. A quick and effective method is switching to a cheaper energy supplier.

MoneySuperMarket can assist in this process, offering a service to compare gas and electric providers from across the market to find a better deal.

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