Green Homes Grant
This is a government scheme which provides funding for residents to make energy improvements to their home to reduce domestic energy related carbon emissions in the UK. ‘Heating buildings accounts for almost a fifth of UK greenhouse gas emissions and reducing carbon dioxide from homes will be essential to reaching net zero by 2050’ (UK GOV, 2020). The improvements should also mean warmer, more comfortable living spaces for residents and lower energy bills.
It is split into two parts:
Part 1 – Resident Vouchers: coordinated between resident and the installer.
Part 2 – Local Authority Delivery (LAD): coordinated by your local authority.
This is a £2 billion scheme and is expected to be used by 600,000 homes, supporting over 100,000 jobs in green construction. £500 million of the £2 billion is assigned to the LAD section of the scheme.
1. RESIDENT VOUCHERS
Scheme Start: The scheme is expected to go live at the end of September 2020. The application page is here.
Scheme End: vouchers must be redeemed and measures installed by 31st March 2021.
For the voucher scheme, the following properties are eligible:
- All owner-occupied homes (including long-leaseholders, shared ownership)
- Landlords of private rented sector domestic properties
- Landlords of social sector domestic properties (including LA owned homes)
- Park home owners (for residential sites including Traveller sites)
- Property must be based in England.
- For the low-income scheme, only owner-occupied properties and park homes are eligible.
- Landlord cannot apply for the low-income part of the scheme.
- You cannot apply for the scheme if you have already received a grant from your local authority as part of the Local Authority Delivery Scheme.
- New-build domestic properties and non-domestic properties are not eligible. For the low-income scheme, only owner-occupied properties and park homes are eligible. Households receiving income-based or disability benefits would be eligible for a fully funded package of measures.
Split into primary measures and secondary measures.
- Insulation: Solid wall, cavity wall, under-floor, loft, flat roof, room in roof, park home.
- Low carbon heat: Air source heat pump, ground source heat pump, solar thermal.
- Draught proofing
- Windows and doors: Double/triple glazing (where replacing single glazing), secondary glazing (in addition to single glazing), upgrading to energy efficient doors (where replacing doors installed prior to 2002).
- Heating controls and insulation: appliance thermostats, hot water tank thermostats, hot water tank insulation, smart heating controls, zone controls, delayed start thermostat, thermostatic radiator valves.
For low-carbon heating to be installed, households will need to have adequate insulation (e.g. wall and loft, where applicable). These can be installed as part of a package – they do not have to already be in situ.
Applicants will need to install one the primary measures to access the funding for the secondary measures.
For more information on what these measures are please visit our page.
The government will provide a voucher that covers up to two-thirds of the cost of qualifying measures, up to a maximum of £5,000.
For low-income households, the government will provide a voucher that covers the full cost of qualifying measures, up to a maximum of £10,000.
The value of the voucher depends on the measures, and the funding you receive for the primary measure will be the same amount of funding you can receive for the second.
For example if you receive £2,000 towards a primary measure e.g. room in roof insulation then you can receive £2,000 for a secondary measure e.g a upgrade from single glazing to double/triple glazing.
Eligibility for low-income scheme
You qualify for the Green Home Grants low-income scheme if you receive at least one of the following benefits:
- Income based Jobseekers allowance (JSA)
- Income based Employment & Support Allowance (ESA)
- Income Support (IS)
- Pension Guarantee Credit
- Working Tax Credit (WTC)
- Child Tax Credits (CTC)
- Universal Credit (UC)
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Attendance Allowance • Carer’s Allowance
- Severe Disablement Allowance
- Industrial Injuries Disablement Benefit
- Contribution based Jobseekers allowance (JSA)
- Contribution based Employment & Support Allowance (ESA)
- Housing benefit
You can use both the Green Homes Grant and ECO funding as long as they are for different measures, you will not be able to use both pots of funding for the same measure.
Domestic Renewable Heat Incentive (RHI)
The Domestic Renewable Heat Incentive (RHI) gives households money towards renewable heating costs in their home. Payments are made for 7 years and are based on the amount of renewable heat made by your heating system.
You can claim both the Domestic RHI and the Green Home Grant for the renewable heat installation. You must claim the Green Home Grant first and then notify Ofgem that you have used it when you apply for accreditation to the Domestic RHI. The Green Homes Grant will then be deducted from your Domestic RHI payments.
Households can claim the Green Homes Grant for energy efficiency measures both before and after accreditation to the Domestic RHI.
This particular scheme is running in England. If you live elsewhere in the UK please use the guidance below or contact your local council.
- The Scottish Government’s ‘helping householders make energy-saving home improvements’ page.
- The Energy Savings Trust run the Scottish schemes on the Scottish Governments’ behalf and their schemes are available here.
The Welsh Government run a home energy efficiency programme called ‘Nest’ which you can read more on here.
Please visit the Northern Ireland energy saving schemes page available here
Once the resident voucher scheme starts (around the end of September 2020) you will be able to apply via the GOV webpage here.
For more on this please visit:
- Initial grant announcement from the government here.
- Additional government information on the grant here.
2. LOCAL AUTHORITY DELIVERY (LAD)
The LAD accounts for £500 million of the overall £2 billion including:
- £200 million for the initial phase (one) running from September 2020 to March 2021
- £300 million for phase two which is expected to run later in 2021
Please note in order for your local authority to offer this part of the scheme, it will need to have bid and that bid must have been accepted/successful.
Timing (phase one)
- Your local authority must submit their bid by 1st September 2020
- Successful bids will be allocated funding by the end of September 2020
- Projects must be completed by 31st March 2021
- Funding is available for all tenure types (including landlords and social landlords) but must support the retrofit of existing domestic dwellings only.
- Funding must be targeted at the least energy efficient housing – those with an energy performance certificate (EPC) rating of E, F or G. Local authorities are required to keep records of housing stock EPC ratings prior to installations.
- Funding must be targeted at households with a [net or gross?] household income of no more than £30,000.
- Funding is only available for eligible measures. Eligible measures are any energy efficiency and heating measures compatible with the Standard Assessment Procedure (SAP) that will improve E, F or G rated homes. LAs must evidence products and technologies of a good standard in the application form, such as renewable heating measures listed on the MCS Directory 1 used for domestic RHI product eligibility.
- Fossil fuel heating systems are not covered by the scheme, including:
- The installation of a new fossil fuel-based heating system;
- The replacement or repair of an existing fossil fuel-based heating system with another fossil fuel-based heating system.
For more on this you can visit the government’s Green Homes Grant – Local Authority Delivery Scheme page.