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Green deal home improvement fund offers grants for energy saving

Posted by Tasha Kosviner on 7 May 2014 at 8:29 am

Households in England and Wales will be given up to £7,600 each to install solid wall insulation, double glazing and new boilers in another move designed to prop up the flagging green deal.

The government’s green deal home improvement fund (GDHIF), which opens in June, will offer grants of up to £6,000 for solid wall insulation and/or up to £1,000 for two additional measures. These could include flat roof insulation, double or secondary glazing or replacement storage heaters, among others. There is also £500 available for anyone carrying out improvements on properties they have bought in the last 12 months, and an additional £100 back on the cost of a green deal assessment report.

Qualification for the scheme will require an energy performance certificate that is less than two years old, or a green deal advice report. Measures that qualify for funding must have been recommended in the report or the EPC, and the measures must be carried out within six months of recommendation by a registered green deal installer.

The fund will replace the green deal cashback scheme, which closes to new applicants on 30 June 2014.  

The scheme has been welcomed by the UK Green Building Council which said it “represents a genuine attempt to rescue the green deal and shows that the government remains committed to home energy efficiency.”

The pay-as-you-save green deal loan scheme was hailed as “transformational” when it was launched back in January 2013 but with only 2000 loans made or in progress to date, it is now widely regarded as a flop. The GDHIF is an extension to the green deal which can be used independently, or as a supplement to taking out a green deal loan.

Last week, energy secretary Ed Davey told the Guardian: “I still think the pay-as-you-save [financing] model has a really important future. But what we got wrong was to say it was the only show in town. People want to finance it in different ways, and you know what, I don’t care. What I care about is people making their homes more efficient, and getting their energy bills down, and the green deal assessment has been key to doing that, and because of that the green deal has been a success."

The new fund will be of most benefit to those installing solid wall insulation who will be able to claim up to 75 per cent of the cost of the installation back, up to a ceiling of £6000. This replaces the £4000 solid wall insulation grant announced earlier this year. It is intended to patch over the massive cut in free solid wall insulation from energy companies made when the government began to 'cut the green crap' earlier this year.

The fund will also provide up to £1000 to those wishing to install up to two measures from a list of an additional twelve. These include a replacement condensing gas boiler, double glazing (to replace single glazing), secondary glazing, replacement doors, cavity wall insulation, floor insulation, flat roof insulation, room-in-roof insulation, replacement warm air units, replacement storage heaters, flue gas heat recovery units and waste water heat recovery units.

In Scotland, £15m has been made available for an equivalent scheme launching in June 2014 called the Green Homes Cashback scheme. 

If you have a question about anything in the above blog, please ask it in the comments section below.

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1 comments - read them below or add one

Fiona Clyde

Fiona ClydeComment left on: 6 June 2014 at 1:26 pm

I would like to know why the Green Deal has not been rolled out to Northern Ireland?  We are part of the UK; we pay our taxes to the UK but when it comes to benefiting in any way, we do not exist! 

My daughter lives in an oldish house (built in the 1940/50s) which has no cavity wall insulation, no roof insulation, air bricks in the external walls, drafty suspended floors an outdated boiler and radiators.  Although she has a fairly good job she cannot afford to make heating and insulation improvements all at once because quite a lot of her wages on child care, yet she falls outside the criteria for help from agencies who provide free insulation and new boilers for those on benefits.  How can she get assistance to make her home warmer for her and her two children?

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