Grants for Energy-Efficient and Eco-Friendly Homes, Plus Information on Related Programs
The grant scheme went live on September 30th, and it will provide vouchers worth up to £10,000 to homeowners and landlords in England to help them carry out renovations to make their homes more energy-efficient.
'Beginning in September, homeowners and landlords will be able to apply for vouchers to make their homes more energy-efficient while also creating local jobs.' Sunak stated during the briefing that the grants would cover at least two-thirds of the costs, up to £5,000 per household.
Households with the lowest incomes in England can receive a £10,000 voucher to cover the full cost of renovations.
The improvements are divided into two categories: primary and secondary measures.
According to Boris Johnson's Ten Point Plan, which was unveiled on November 18, 2020, the Green Homes Grant will be extended until March 31, 2022, and will receive an additional £1 billion in funding. However, this deadline has since been changed, and the deadline for new applications has been set for the end of March 2021.
What Are the Other Government Grants Available in the UK?
Despite the fact that the UK government closed the Green Homes Grant, there are other grants and incentives available to UK households. In the United Kingdom, the following grants are available for the installation of low-carbon and clean energy technologies:
- Renewable Heat Incentive (RHI) - RHI is a program that assists and incentivizes homeowners who use renewable energy heating technologies such as heat pumps. After installing renewable heating technology, you will be eligible to apply for RHI, which will allow you to earn quarterly payments for a period of seven years. According to reports, the Clean Heat Grant, a new proposal, will take the place of RHI after March 2022.
- Smart Export Guarantee (SEG) - The Smart Export Guarantee rewards UK homeowners who have installed renewable energy technologies such as solar panels to generate electricity for their homes. With SEG, you can earn money by selling the excess energy generated by renewable technology back to the grid.
- Energy Company Obligation (ECO) - The ECO is a government energy efficiency initiative that helps low-income and vulnerable households heat their homes.
- VAT Reduction - Under the new VAT pricing system for the installation of energy-saving technologies, certain households with solar panels can receive a 5% tax reduction.
What is the Green Homes Grant?
The government has now released the entire list, which includes a variety of energy-saving improvements. Renovations are classified into two types: primary and secondary measures.
To participate in this scheme, the government encourages suppliers of the following improvements to obtain TrustMark or MCS accreditation.
Primary Indicators
Under the Green Homes Grant, you can apply for one or more of the primary home renovation projects.
You cannot use the voucher for previously completed work. That is, you cannot claim a voucher for a heat pump installed prior to the start of the grant; it must be installed during the grant period. However, you may use the voucher to supplement existing installations, such as upgrading old windows to new windows.
Energy-saving projects include the following:
When it comes to low-carbon heating, it is critical that they replace an existing fossil-fuelled system—except for solar thermal panels.
Secondary Metrics
Secondary renovations are only possible after at least one primary measure has been completed.
Furthermore, you are only eligible for secondary measures if you are upgrading to them—for example, if you already have double glazed windows, you are not eligible for new double glazed windows.
- Installing double glazing
- Adding secondary glazing
- Installing triple glazing
- Upgrade to draught-proof doors (when replacing doors installed prior to 2002)
- Investing in draught-proof windows
- Temperature control
- Thermostats for hot water tanks, appliance tanks, and heating smart meters
The secondary measures' costs cannot exceed the primary measures' costs.
According to Treasury estimates, families can save up to £300 per year by lowering their energy bills with these measures through the Green Homes grant.
To participate in the scheme, homeowners can apply online beginning in September and will receive a redeemable voucher to use with accredited partners.
What the Scheme Doesn't Cover
The Green Homes Grant covers a wide range of green home improvements, but there are some that it does not. The scheme's overall goal is to make homes more energy-efficient, and any work that does not fall into this category will not qualify you for a voucher.
The Green Homes Grant excludes the following items:
- Any renovations completed prior to the issuance of a voucher
- Any type of renovation that does not improve the energy efficiency of a home
- Replacement or repair of boilers
- Adding a new room to your house
- Insulating extensions or conservatories that do not have installed fixed heating
Furthermore, solar panels (photovoltaic panels) are not eligible for the Green Homes Grant. Only the solar thermal panels are included.
Who Qualifies for a Green Homes Grant?
To be eligible for the grant, you must live in England. The application must be completed by March 31, 2021.
To be eligible, you must either:
- possess ownership of your own home, or
- be a private or social landlord (landlords are not eligible for the grant scheme's low-income component)
Newly constructed properties that have not previously been occupied are not eligible for the Green Homes Grant.
The government may pay for 100% of your renovation installation costs, up to £10,000, under the low-income section of the scheme. Furthermore, you will not be required to pay a deposit for your renovations.
In addition to the Green Homes Grant program, Surrey County Council announced Green Jump Surrey, which is available to some customers depending on their individual circumstances.
This new funding, which is available until March 31, 2021, will provide eligible households with up to £10,000 for energy efficiency measures in Surrey homes. The project covers the entire cost of works up to £15,000 in value.
To be eligible, you or anyone in your household must be receiving certain benefits.
The complete list of benefits is available on the government's website.
Is it possible to combine the Green Homes Grant with other grants?
You are not eligible if you received a grant through the Local Authority Delivery scheme.
You cannot use a Green Homes Grant voucher for the same measure if you have already received a grant for it through the Energy Company Obligation (ECO).
For example, if you used the ECO grant to draught-proof your windows, you cannot use a Green Homes Grant voucher to draught-proof your doors, but you can use it to draught-proof your windows.
You can receive both the Green Homes Grant and the domestic Renewable Heat Incentive (RHI). You must first claim the voucher and then notify Ofgem so that the amount of the voucher can be deducted from your RHI payments. This means that you will effectively pay off the voucher with your RHI payments, which means you will not reap the full benefits of the RHI.
How to Make an Application for a Green Homes Grant
To be eligible for the Green Homes Grant, you must first obtain a quote from a TrustMark or MCS accredited installer who has approved the work for your specific property. It's best to get three quotes so you can be sure you're getting the best deal.
You can apply for a voucher on the government's website once you've received a quote.
When you apply, you must provide the following information:
- Property owner(s)' personal information
- Personal information about those currently receiving benefits who live on the property
- The estimate provided by an MCS or TrustMark accredited installer
- The installer's TrustMark license number
It should be noted that the TrustMark certified installer may use subcontractors to complete work. To make the grant more accessible, the government has announced that subcontractors are no longer required to be MCS or TrustMark certified.
If one or more of the quotes you have received is excessively high, the Green Homes Grant team will not approve it. This is done to ensure that installers' prices are competitive. In this case, you may need to seek another reasonably priced quote, or if you submitted multiple quotes in your application, the cheapest (if reasonable) one will be chosen.
If you are working on multiple projects, you do not need to submit a separate application for each one; instead, submit the individual quotes as a single application. You will then be given individual vouchers for each measure.
Vouchers cannot be redeemed for work that has already begun. Do not begin a project until the voucher is approved.
To be able to redeem the secondary measure voucher, you must first have completed the primary measure and redeemed that voucher.
The voucher is valid for three months after it is issued.
Once the work is completed, you must provide the following information:
- Completing the project satisfactorily before the voucher expires
- All project-related documentation from the installer, including a dated copy of the invoice
- Proof that you have paid your share of the costs to the installer (unless you are part of the scheme's low-income component).
- Proof that you meet the scheme's eligibility requirements
When you redeem the voucher, the remaining project costs are paid directly to the installer. This will finish the project, and you will be able to enjoy your new green energy home improvement.
What the Grant Intended to Achieve
The Green Homes Grant scheme is a £3 billion package designed to help the UK recover from the COVID-19 pandemic by saving money, reducing carbon emissions, and creating jobs. Mr Sunak announced an additional £1 billion package for the public sector.
Boris Johnson announced on November 18, 2020, that an additional £1 billion will be allocated to the grant scheme.
This £4 billion government initiative will make 650,000 homes in England more energy efficient, save households money on bills, and reduce the UK's carbon emissions by more than half a megatonne per year — the equivalent of taking 270 cars off the road. 000 cars from the road — and create an estimated 140,00 green jobs
'This will be a green recovery, with environmental concerns at its core,' Sunak says.
A £5,000 voucher, combined with existing green energy funding opportunities, makes the transition to renewables more affordable than ever.
GreenMatch's quote comparison service allows you to compare the best deals for green energy improvements for your home.
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