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DECC announces cashback scheme to incentivise energy saving improvements

Posted by Cathy Debenham on 22 October 2012 at 2:59 pm

Householders making energy saving improvements to their home will be able to claim up to half the cost back under a new cashback scheme. The government has put aside £125m to help kick start its flagship Green Deal scheme which will provide finance for energy efficiency measures from 28 January next year (2013).

Homeowners, tenants and landlords are all eligible for the Green Deal Cashback (as long as they are the ones who are paying the installation costs). They can claim up to 50% of their contribution to costs. Improvements that are eligible include: insulation, double or secondary glazing, boilers and draught proofing.

To be eligible householders must:

  • have a Green Deal assessment carried out on the property
  • get and agree quotes from a Green Deal  Provider (this could be directly with a national brand or through a local tradesperson linked with a Provider)
  • apply for Cashback voucher online or by phone. To make things easier some Providers will be able to apply on behalf of their customers
  • receive voucher confirming the Cashback
  • complete works within specified period
  • redeem voucher, along with evidence of works completed, for Cashback.

Work must be done within a specified period. This is six months for solid wall insulation and three months for all other improvements, and in all cases before 31 March 2014.

You do not have to fund the improvements through a Green Deal finance plan (this is the one that you pay back through your electricity bill). However, you must use a Green Deal provider to arrange the work.

Measures eligible for Green Deal Cashback:

Loft insulation (including top up) £100
Cavity wall insulation £250
Solid wall insulation* £650
Flat roof insulation £390
Room in roof insulation £220
Floor insulation £150
Hot water cylinder (top up)** £10
Draught proofing £50
Heating controls (roomstat and/or programmer & time/temperature zone controls)** £70
Condensing oil boiler from non-condensing oil heating or other*** £310
Upgrade boiler to condensing gas boiler from non-condensing boiler or other £270
Flue gas heat recovery (condensing combi boiler) only alongside replacement boiler £90
New or replacement storage heaters £150
Replacement warm-air unit £60
Waste water heat recovery systems £60
Double/triple glazing (old single to A) £20 per m2 up to a max £320
Secondary glazing £15 per m2 up to a max £230
High performance replacement doors

These rates are guaranteed for the first £40m of Green Deal cashback, after which they may be reduced.

If the home assessment recommends loft insulation (including top up) and/or cavity wall insulation you will only be able to get cashback for additional improvements if these basic measures are done too.

* A minimum of 50% of external walls must be insulated to qualify for a Cashback.
** Cannot be claimed at same time as boiler replacement (as this is a regulatory requirement).
***Householders should consider their renewable heat options, as they could get a higher payment under RHPP now, for certain measures.

Using a Green Deal provider will mean having a home energy assessment done. This will tell you which improvements, if any are eligible for a full loan under the the Green Deal plan. This means that it can be paid back through the savings in your energy bill that result from the measures being done. The Green Deal plan can also be used to part-pay for improvements. The interest rate is not known yet, but is expected to be in the range of 6-8%.

Phone the Energy Savings Advice Service on 0300 123 1234 if you want to be notified when the full details of the scheme are available.

Photo by Jude Hill

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