The Government’s Green Homes Grant 2020
The Government’s Green Homes Grant Scheme launched at the end of September 2020. So, we wanted to share with you what we know so far about how much funding could be available for you, what home improvements the funding can be used for, and how to find out if you are eligible for this funding.
To give some background, Rishi Sunak, Chancellor of the Exchequer, gave an announcement for the Green Homes Grant Scheme 2020 on 8th July. The idea behind this scheme is to encourage owners of homes in the UK to carry out home improvement projects which could save you up to £600 a year on energy bills, reduce greenhouse gas emissions and help towards saving our planet.
A total of £2 billion has been designated for this grant. £1.5 billion of which has been allocated for to homes which are not receiving any benefits from the government, each one able to receive up to £5,000 towards energy saving home improvements. In this case, the government pays for 2/3 of the cost up to £5,000, and the homeowner will need to pay the remaining 1/3 of the cost for the home improvement.
The remaining £500 million of the budget has been set aside for homes which are currently receiving government benefits. In this case, each home can receive up to £10,000 towards energy saving home improvements, and the government will pay for the full cost, up to this amount.
The government released a publication at the beginning of August 2020 which specified that the vouchers must be redeemed and all improvement work should be completed by 31st March 2022.
A list of the home improvements which the funding can be used towards was also given within the publication. The list was split into separate “Primary” and “Secondary” categories.
The home improvements under the “Primary” category which the funding can be used towards include insulation (solid wall, cavity wall, under floor, loft) and low carbon heating (air source heat pumps, ground source heat pumps, solar thermal).
Eligibility for funding towards home improvements from the “Secondary” category is depended on homeowners first completing, or having already completed, a home improvement listed in the “Primary” category. The home improvements included in the “Secondary” category include draught proofing, replacing single glazing with double glazing, and advanced heating controls (Smart thermostats etc.).
It is important to consider that there is no general advice for what homeowners should spend their portion of the grant on because this will be different for each house. For example, if one house is badly insulated the advice is likely to be to focus on proper insulation. However, before choosing to install solar thermal, source or ground heat pumps, it is also advisable to speak with a local expert to consider the different variables.
You should speak with your local council and renewable energy experts to get the best advice for which options are going to be the best for you. It is also important that you choose someone who is Trustmark or MCS registered installer when deciding who will carry out the work for your home improvements, otherwise you may not be eligible for the funding.
For more information on the Government’s Green Homes Grant scheme and to find out what you are eligible for, click here.