The Green Homes Grant

The Green Homes Grant scheme is now closed to new applications. Please visit our funding page to explore other options.

What is the Green Homes Grant?

The Green Homes Grant scheme supports energy efficiency measures in existing homes across England. It can reduce the upfront costs of measures such as insulation and ground source heat pump installations.

The scheme, running until 31st March 2021, provides vouchers that cover up to two-thirds of home improvement costs, up to a maximum of £5,000. Low-income households may be eligible for a voucher covering 100% of the costs, up to a value of £10,000. Discover how to make the most of the grant and funding here.

Who is the Green Homes Grant for?

The Green Homes Grant is for homeowners and landlords looking to improve the energy efficiency of existing homes across England.

The scheme offers vouchers up to £5,000 for energy efficiency upgrades, covering up to two-thirds of the cost of energy-saving measures. Low-income households, or those in receipt of certain benefits, will receive a voucher to cover the entire cost of the home improvements up to a maximum value of £10,000.

Aims of the scheme

The Green Homes Grant aims to reduce fuel poverty and cut energy bills for homes across England. The scheme will achieve this by supporting efficiency improvements such as heat pump installations, insulation, draft proofing and more. The £2 billion grant will result in warmer homes and cheaper bills for over 600,000 homeowners in England.

See more government guidance

Am I eligible for the Green Homes Grant?

Low-income scheme

Up to £10,000 Green Homes Grant

You qualify for the low-income scheme if you receive 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.

Landlords cannot apply for the low-income scheme.

General scheme

Up to £5,000 Green Homes Grant

As part of the general scheme, the government’s eligibility criteria include:

  • 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 Gypsy and Traveller sites).

New-build domestic properties, including newly-built properties that have not been previously occupied and non-domestic properties, are not eligible.

Check if you're eligible

What can Green Homes Grant vouchers be used for?

The scheme covers about 20 energy efficiency measures. However, it’s not possible to select the measure you’d like and simply apply for the voucher. You’ll need to install what the government classes as a ‘primary measure’ in order to qualify for support.

Primary measures

The voucher must be used to install at least one primary measure. The primary categories of improvements supported by the grant include one or more of the following:

Insulation for low-carbon heating

Households must have sufficient insulation in order to install low-carbon heating. These improvements do not have to be in situ – they can be installed as part of a package.

‘Topping up’ measures

Top-up measures – such as loft insulation to the recommended level – are allowed, but replacements are excluded.

Download conditions for low-carbon heat measures

Secondary measures

If you install at least one primary measure, the Green Homes Grant may also help cover the cost of any secondary measures afterwards.

The secondary categories covered by the scheme include one or more of the following:

  • Double or triple glazing/secondary glazing, when replacing single glazing
  • Upgrading to energy-efficient doors
  • Hot water tank/appliance tank thermostats/heating controls

Amount cannot exceed that of primary measures

The amount you receive for secondary measures is capped at the same amount you received for a primary measure. For example, if you received £1,500 towards a primary measure, you are only allowed up to £1,500 towards secondary measures.

Remember: You can only redeem a secondary measure voucher once you have installed the primary measure and redeemed the voucher.

How does the grant work with a Kensa heat pump installation?

As with all funding schemes, Kensa is happy to help you identify the route for the best value heat pump. Here are some recommendations on how we believe you may utilise available funding streams, including and excluding the Green Homes Grant, to get the best system for you:

Scenario 1 – GHG for fabric improvements + 100% RHI income for heat pump

If your home would benefit from fabric improvements – for example, insulation – then you may want to apply for the GHG for this primary measure. Because the grant works alongside the RHI, you could instead go down the RHI route for your ground source heat pump. That would mean the grant will not be deducted from your RHI and it will cover the upfront cost of the insulation.

This is a win-win situation – by installing an energy efficiency measure, this may result in a smaller specified heat pump which is cheaper. But bear in mind that in this scenario, there would be no reduction to the upfront cost of the ground source heat pump, just the energy efficiency measure. The RHI returns gradually over seven years.

Scenario 2 – RHI only

If you don’t need any other measures and can afford the upfront cost of a ground source heat pump, then it may be best to opt for the RHI route alone. The RHI provides a greater return, offering a typical return of £26,000 over seven years. Using the GHG would reduce your upfront cost, but it would also balance out and be deducted from the overall amount of your RHI – for example, the typical income is reduced to £21,000.

This may be a simpler route if possible, as the GHG is limited to a smaller pool of installers and is dependent on a number of conditions.

Scenario 3 – GHG for upfront heat pump cost + reduced RHI

If you would like to reduce the upfront cost of your ground source heat pump, you may want to use the Green Homes Grant for a ground source heat pump as the primary measure. For example, if your installation costs £16,000, the grant would reduce the upfront cost to £11,000. If you also apply for the RHI, remember that the amount will be deducted from your overall RHI income – for example, a seven-year income of £26,000 is reduced to £21,000.

We only recommend this as a final option because the rules surrounding the GHG add additional paperwork and reduce the number of installers that you will be able to work with. However, Kensa will offer advice throughout the process – whichever option you choose.

Need help? Get in touch with Kensa

If you need advice on ground source heat pumps and the Green Homes grant, Kensa will talk through your options and help you find an installer – whether they have worked with us on projects before or we have found them through trusted recommendations.

Please bear in mind that there is only a small number of available installers, as they must conform to conditions such as MCS and TrustMark accreditation.

•  Call us on 0345 222 4328

•  Email us at enquiries@thekensagroup.com

GET A QUOTE

Can I receive both the Green Homes Grant & Domestic RHI?

Yes, a Green Homes Grant for a ground source heat pump can be used in conjunction with the Domestic RHI.

In this scenario, you must first apply for a Green Homes Grant and then subsequently apply for the RHI. The value of the Green Homes Grant is then taken off the value of the projected RHI payments. Your installation, and particularly how you paid for it, must also comply with the rules of both schemes.

However, this cannot work the other way round i.e. you cannot apply for the Domestic RHI or currently be in receipt of RHI for a specific installation that constitutes a measure under the Green Homes Grant, and then subsequently apply and receive a grant.

As Domestic RHI applies to a specific installation, identifiable via an MCS certificate, a homeowner could choose to have a further renewable heat measure using the Green Homes Grant. For example, they could already have a heat pump attracting RHI but then under the Green Homes Grant opt for solar thermal. The solar thermal installation would attract a separate MCS certificate.

How much money could I save from the scheme?

Green Homes Grant vouchers can be used to cover up to two-thirds of the cost of your chosen measure(s) to a maximum of £5,000 – or the full cost of the measure(s) up to £10,000 depending on your circumstances.

The following example follows the scenario of using the grant to reduce the upfront cost of your heat pump. The cost is based on installing an Evo ground source heat pump into a home, using slinky groundwork.

Home improvement cost

  • Appliance & infrastructure cost (GHG deducted): £11,000
  • Domestic RHI income (over 7 years): £21,000
  • Running costs (over 7 years): £9,000
  • Servicing costs (over 7 years): £0

Total net cost: £1,000 profit

Yearly savings

  • Carbon savings: 28 tonnes
GET A QUOTE

What does the voucher cover?

The costs associated with the work, and covered by the voucher, include:

  • Labour
  • Materials
  • VAT

Additional works, which are necessary for the installation of energy efficiency measures, should also be covered.

Download the guide to what the voucher covers

How does the Green Homes Grant scheme work?

Visit the Simple Energy Advice website

  • The Simple Energy Advice (SEA) service will recommend any appropriate home improvements that may be supported by the Green Homes Grant.  You can also seek advice from your property’s Energy Performance Certificate (EPC) recommendations or from a retrofit assessor.
  • The service tool will check your eligibility and provide details of local accredited installers.

Identify your chosen primary measure

  • A Green Homes Grant voucher must be used to install at least one primary measure.
  • Households are eligible to install secondary measures if at least one primary measure is included in the home improvement. Secondary measures will only be worth as much as primary measures e.g. if a household has primary measures and receives £1,000, they will receive no more than £1,000 towards secondary measures.

Source quotes for your chosen measure(s)

Apply for your voucher for your chosen measure(s) & installer

  • Once you have decided on your chosen primary energy efficiency measure and your installer (hopefully a Kensa ground source heat pump by one of our MCS-accredited installer partners, which we can recommend), you can apply for your voucher here, where you will be required to nominate your intended tradesperson or business to carry out the work.
  • You will need to provide a copy of the quote when you apply. That way, if the quote seems unreasonable, the scheme administrator may ask you to provide another quote.
  • If you’re installing different measures, you can use more than one installer. However, you only need to complete one application form. Just be sure to provide a separate quote for each measure.
  • Make sure you do not commit to any works until you know whether or not you have been successful with your application.

Install your primary measure

  • Once you have received your voucher and had confirmation that it has been accepted by your installer, you can proceed with the installation.
  • It might be that your installer asks you for a deposit, but this should not exceed usual charges and cannot be more than your expected expenses for the measures.
  • Under the low-income scheme, your installer cannot request a deposit unless your measures exceed the cost of £10,000.
  • Make sure the work is scheduled to be completed, subject to its terms and conditions, within three months of the voucher’s issue date or by 31st March 2021 – whichever comes first.

Redeem the voucher

  • To redeem your voucher, you will need to confirm that you are satisfied with the job and that it’s been completed before the earliest of the voucher’s expiry date or 31st March 2021. You will also need to confirm that you have received the necessary documentation from the installer, that you paid your share of the cost to them (if applicable) and that you meet the eligibility criteria. Alongside this, provide a dated copy of the invoice, which the installer should have issued you with.
  • The scheme administrator then asks the installer for confirmation that the job has been completed and if so, will pay the voucher amount to the installer.

What is the process for installers?

To be eligible for the scheme, MCS installers will need to be TrustMark certified. This is a very simple process to complete, and demonstrates to homeowners that you conform to high installation standards.

Once you are registered, you can then use these details to register online as a Green Homes Grant installer. You will also be added to a TrustMark directory, where homeowners will be able to contact you and get a quote.

When it comes to carrying out works, the process is as follows:

  • Firstly confirm acceptance of the voucher.
  • Install the ground source heat pump. If you are installing a Kensa heat pump, access our free technical support for any help along the way.
  • Complete works by 31 March 2021 or within three months of the voucher’s issue date – whichever comes first.
  • Deduct the value of the voucher from your invoice to your customer.
  • Your customer will then redeem the voucher. Provided the work was completed satisfactorily and you have provided the required evidence as requested by the scheme administrator within 10 days, the voucher amount will be paid directly to you on the customer’s behalf.

What is the Local Authority Delivery scheme?

The Local Authority Delivery (LAD) is a branch of the Green Homes Grant scheme which allowed local authorities to bid for funding to upgrade the energy efficiency of existing properties.

See more on the LAD scheme

Need help? Get in touch with Kensa

We are more than happy to offer advice on the Green Homes Grant and other funding combinations to ensure you get the best value system. We will talk through your options and help you find an installer – whether they have worked with us on projects before or we have found them through trusted recommendations.

Please bear in mind that there is only a small number of available installers, as they must conform to conditions such as MCS accreditation.

•  Call us on 0345 222 4328

•  Email us at enquiries@thekensagroup.com

This page will be updated as government issues further details. Read the government’s press release here.