The Green Homes Grant, will provide homeowners with vouchers for energy efficiency improvements up to £5,000 in which the government will cover two-thirds of the cost.
The news has been welcomed by homeowners and landlords who could make significant improvements to their property through the help of the scheme.
But what improvements can you make through the green homes grant and how do you apply? This guide answers the key questions you need to know including where you can go for advice.
What is the Green Homes Grant?
The Green Homes Grant was one of the major updates in the government’s Summer Statement, delivered by chancellor Rishi Sunak in July 2020.
The scheme will provide £2bn as part of a wider £3bn plan to drastically cut carbon emissions and is set to improve the energy efficiency of thousands of eligible homes.
Once launched, the government will pay two-thirds of energy-efficient home improvements up to £5,000.
The grants will be provided in the form of vouchers which can be used towards making energy-efficient improvements to homes.
What home improvements fall under the Green Deal?
Insulation, such as solid wall, cavity wall or loft insulation
Renewable energy generation, such as solar panels or heat pumps
How does the Green Deal work?
In order to obtain a voucher, homeowners will have to make an online application detailing the energy efficiency measures they wish to carry out. These details will then be forwarded to accredited local suppliers.
Once one of the suppliers has issued a quote, and the requested work has been approved, then the government will issue the voucher towards the work.
Under the scheme, the government will pay at least two-thirds of the cost of home improvements that save energy, up to £5,000.
In the announcement it was also revealed that those on low incomes will be able to get more help with vouchers worth up to £10,000 per household. The minimum income threshold hasn’t been announced as of yet but more details are expected to be announced soon.
Green Homes Grant example
The below example assumes that you qualify for home improvements to the value of £5,000 though the figures have been provided purely as an example.
If you were to have a new, more energy-efficient front door installed for around £2,000, then the government would contribute around £1,333 and then you would pay around £666.
A further example provided by the Treasury says a homeowner installing cavity wall and floor insulation costing £4,000 would only pay about £1,320, with the Government contributing the remaining £2,680 through the voucher scheme.
Who is eligible?
The chancellor revealed that both homeowners and landlords would be eligible in his statement, but we await further details. The chancellor confirmed that up to 650,000 homes will be covered by the grant.
Unfortunately, the Green Homes Grant applies to England only so homes in Scotland, Wales or Northern Ireland won’t be eligible.
How can I apply for the Green Homes Grant?
Applications are due to open on Gov.uk from September 2020.
A list of energy efficiency measures is likely to be listed on the website, so homeowners will know what the vouchers can definitively be used for.
Once a supplier has provided a quote and the work has been approved, a voucher will be issued. The Government hasn't said how long it could take for an application to be approved and a voucher issued, however
I’ve just bought a house, can I apply for the Green Homes Grant?
The thermal efficiency of a home is really important, not just for your toes in the winter but for your heating bill too.
Newly built properties have to meet certain levels when it comes to thermal performance but older properties which can be initially cheaper, can sometimes allow heat to escape whether that be through the windows, roof, doors or walls.
The good news is that through the Green Homes Grant, you may be able to improve your property’s energy efficiency while also potentially adding value.
Why is the government providing Green Homes Grants?
As well as planning to create thousands of new jobs, the government believes the scheme will help the UK meet its 2020 target of achieving net zero carbon emissions.
Could green home improvements increase the value of my property?
It’s difficult to predict whether the value of your property could increase with the addition of a green home improvement, though renovations that improve the quality of a building as well as the aesthetic appearance can sometimes improve the saleability of a home.
The key benefit of the £5,000 grant is the improvement of energy efficiency which The Treasury claims could save some families up to £300 a year on energy bills.
Should I apply for the new Green Homes Grant?
The green scheme could improve the energy efficiency of properties throughout England but before you make a decision about whether or not you should apply, remember that more information is due to be released ahead of applications opening in September, 2020.
Once the definitive list of energy efficient improvements has been released with further details of the eligibility criteria, you will have more information to make a decision.
That being said, our advisors are more than happy to answer any niggling questions you have about the scheme and can also explain how green home improvements could affect the value of your property and even your ability to remortgage.