Utility Saving ExpertEnergyGuidesGreen Homes Grant Scheme

Do you qualify for up to £10,000 in green home improvement vouchers?

Green Homes Grant Scheme

Vouchers worth up to £10,000 are being made available to homeowners and landlords as part of the UK Government’s new Green Homes Grant scheme.

Reward for Green homes initiative

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What the Green Homes Grant scheme provides

Under the new scheme, homeowners and landlords will be provided with vouchers to pay for home improvements to increase the energy efficiency of their properties, with the UK Government footing most, or all, of the bill.

For most homes, the vouchers will provide a cash value of up to £5,000. This amount will be doubled for lower income homes, which can be eligible for vouchers worth up to £10,000.

The scheme works slightly differently depending on which of the two categories your home falls under. The vouchers will cover at least two thirds of the cost of your eco-friendly home improvements for households eligible for vouchers up to £5,000.

However, households with low incomes that are eligible for up the higher value vouchers will not be charged anything and the government will cover the costs up to £10,000.

According to the Treasury, one example of how the scheme would work with a voucher up to £5,000 is as follows:

  1. Homeowner wants to install cavity wall insulation and floor insulation.
  2. Energy efficiency improvements are worth £4,000.
  3. Homeowner applies for a Green Homes Grant and is given a voucher.
  4. Homeowner pays around £1,320.
  5. Remaining £2,680 is paid for by the UK Government.

As green improvements will also reduce your energy bills, you stand to save hundreds of pounds each year as an ongoing benefit.

How Green Homes Grants works

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What the vouchers will cover

If you are hoping to make changes to your household so that it can be more environmentally friendly, government-funded energy vouchers through the Green Homes Grant scheme may be able to help you cover the costs.

    Intended for green improvements, the grant is likely to cover:
  • Double glazing
  • Loft, floor and wall insulation

While the full list of energy efficiency features has not yet been released by the government, it’s likely these will relate to core energy improvements. It’s not yet clear whether the scheme will include the likes low energy lighting, energy efficient doors, heat pumps or eco-friendly boilers.

There is some speculation as to whether the vouchers will cover replacements. For example, changing existing double-glazed windows with new double glazing that comes with a higher Window Energy Rating, to increase your chances of your home being A-rated for energy efficiency.

    It’s possible the scheme will be split into two parts:
  1. Primary measures
  2. Secondary measures
    If this is the case, primary measures will likely cover the features that make the biggest impact on your property’s level of energy efficiency, such as:
  • Cavity wall insulation
  • External wall insulation
  • Loft insulation
  • Room in roof
  • Underfloor insulation

Finding suppliers for the Green Homes Grant

Who is eligible for Green Homes Grants

It is expected that more than 600,000 homes in England will be able to take advantage of the new Green Homes Grant scheme.

Eligibility criteria has not yet been released, but there doesn’t appear to be any qualifying income for vouchers up to £5,000, so most commentators anticipate that the majority of homeowners and landlords will be eligible if their homes need energy efficiency improvements.

The type of work and supplier you use are also factors for eligibility. You will need to get a quote from an accredited supplier and the type of work must be approved under the scheme. Only after this will your voucher be issued.

For the majority of grant recipients, you will receive a voucher paying for two-thirds of your eco-friendly home improvements, up to £5,000. For those on low incomes, vouchers can cover the total cost of energy efficiency work on your property, up to £10,000.

In the past, the Green Deal, a similar government-funded scheme, required pre-qualifying inspections to confirm whether a home was suitable.

If this is introduced for the Green Homes Grant scheme, it may also dictate the type of home improvements your property is eligible for and whether you will need a package, such as combining cavity wall and underfloor insulation.

How to apply for a Green Homes Grant

How to know if a Green Home Grant is right for you

It’s a good idea to make use of the Green Homes Grant if you are eligible. Not only does it significantly lower (or completely pay for) the cost of essential energy efficiency improvements for your home, but it provides longer-term financial benefits.

With the new energy efficient features installed, you will require less energy to feel the warmth in your home. The consequence of this is that you will have a more pleasant home environment at a lower cost, which in turn saves you potentially hundreds of pounds each year on lower energy bills.

It’s estimated that the average annual savings on energy bills is likely to be around £200 per year, with potential savings for families up to £300 per year.

You can get a sense of the impact energy efficiency improvements would have on your home by checking your Energy Performance Certificate (EPC).

Many potential property buyers look at EPCs to identify roughly how much it would cost to heat, power and produce hot water. This is because EPCs help you understand how energy efficient a building is.

An EPC is graded from A to G.

  • Buildings graded A will already have good energy efficiency. They are usually modern properties that are well insulated.
  • In the middle of the scale are buildings graded D, typically older properties that do not have energy saving measures installed.
  • At the bottom of the scale is grade G, for old properties with draughts. In these buildings, you will probably be able to feel the weather indoors.

If the EPC of your home indicates that your property does not have energy-saving technology or energy-efficient features installed, it’s highly likely that you would benefit from the Green Homes Grant to make those improvements.

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