The Green Homes Grant

The Green Homes Grant scheme supports energy efficiency improvements in existing homes across England. The scheme will deliver vouchers of up to £10,000 for upgrades, such as insulation and ground source heat pump installations. The Green Homes Grant scheme commences September 2020 until the end of March 2021.

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

Who is the Green Homes Grant for?

The grant is for homeowners and landlords across across England.

In most cases, 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 will receive up to £10,000 to account for 100% of the home improvements.

How will the Green Homes Grant help UK homes?

The Green Homes Grant aims to reduce fuel poverty and cut energy bills for UK homes. 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.

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

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 and non-domestic properties are not eligible.

See more on eligibility

What does the grant cover?

Primary categories

The primary categories of improvements supported by the grant, which apply to homeowners, owner-occupiers and social/private landlords, include one or more of the following:

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

Secondary categories

If households have already installed one of the primary categories, 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

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.

How much money could I save from the scheme?

This example – provided by the Department for Business, Energy & Industrial Strategy (BEIS) – is based on cavity wall and floor insulation in a semi-detached or end-terrace house.

Home improvement cost

  • Overall cost: £4,000
  • Homeowner pays: £1,320
  • Government pays: £2,680

Yearly savings

  • Bill savings: £200 a year
  • CO² savings: 700kg

In low-income scenarios, those who are owner-occupiers and in receipt of income-based or disability benefits will receive a 100% subsidy up to the maximum £10,000.

How does the Green Homes Grant scheme work?

The government has confirmed that from September 2020 it will be possible to apply for the Green Homes Grant online via the Simple Energy Advice, but you will not be able to sign up before then.

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 – so the amount of subsidy provided has to match. For example, if a household has primary measures and receives £1,000, they will receive no more than £1,000 towards secondary measures.

How do I install a heat pump under the Green Homes Grant?

The Simple Energy Advice (SEA) service will recommend any appropriate home improvements that may be supported by the Green Homes Grant.

In order to support eligibility, the work must be carried out by a tradesperson that is accredited by TrustMark or the Microgeneration Certification Scheme (MCS). Kensa Heat Pumps is an accredited MCS installer, as are our products. To find your local Kensa recommended MCS accredited installer, please contact us.

Once the works are agreed on, homeowners, owner-occupiers and social/private landlords can begin to be issued vouchers from the end of September.

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 (DRHI).

In this scenario, you must first apply for a Green Homes Grant and then subsequently apply for the DRHI. The value of the Green Homes Grant is then taken off the value of the projected DRHI payments.

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

As DRHI 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 DRHI but then under the Green Homes Grant opt for Solar Thermal. The Solar Thermal installation would attract a separate MCS certificate.

What is the Local Authority Delivery scheme?

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

£500 million has been designated to support low-income, fuel poor households, which includes rented accommodation. In the initial phase, £200 million funding will be delivered through local authorities to upscale existing energy efficiency improvement projects.

The objectives are to reduce fuel poverty, cut emissions and raise the energy efficiency of properties with an Energy Performance Certificate (EPC) Band of E, F or G – including off-gas grid homes.

Local authorities must bid for funding from the Green Homes Grant by 1st September 2020 (12 noon).

See more on the LAD scheme