The Green Homes Grant and what it means for you

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Chris Lovatt, Chief Operating Officer of E.ON Energy Infrastructure Services, explains what the new Green Homes Grant is and how you could benefit.

Around 29 million homes in the UK currently have the potential to dramatically improve their energy efficiency through home improvement measures.

And now, homeowners in England can get financial help to become more energy efficient. That's thanks to the new Green Homes Grant scheme, a fund for energy efficient home improvements which has been recently launched by the Government1.

At E.ON, we’re committed to helping improve the UK’s housing stock. We install a range of measures from insulation, to efficient boilers, to solar and battery technology, all aimed at helping people make their homes and their lives more sustainable, while also helping lower their energy bills. We’ve also installed more than 2.5 million smart meters to help people better understand their energy use and spend.

For low income households, we offer support through schemes like our Warm Home Discount scheme where eligible people can get £140 towards their electricity costs, and our Affordable Warmth scheme where we offer free and discounted measures including cavity wall insulation, loft insulation and boilers.

We already provide 100% renewable electricity for our customers’ homes2 and eligible small businesses3, and I know that many of our customers will want to make their homes even more eco-friendly, while also saving money on their energy bills. So here, I’ll answer some of the questions you may have about the Green Homes Grant.

What is the Green Homes Grant?

It’s worth knowing there are two forms of the Green Homes Grant scheme. One is for homeowners to improve their properties and recover part of the cost from the Government in the form of energy saving vouchers. The other is designed to help local authorities fund works at a larger scale and is targeted specifically at people on low incomes.

E.ON is already working with more than a dozen local authorities around the country on what is called the Local Authority Delivery (LAD) scheme. So if you think you might qualify for such support it’s worth checking with your local authority on whether they could help improve your home.

Schemes like the Green Homes Grant help bring us closer to meeting the UK’s target of reducing carbon emissions to net zero by 2050. And here at E.ON, we welcome this new initiative as part of our ongoing work to help improve the energy efficiency of the UK’s housing stock, and our own commitment to being carbon neutral by 2040.

Who is eligible for funding under the Green Homes Grant?

The Green Homes Grant has been designed to offer a range of different measures to a variety of homes in England.

Around 600,000 homeowners in England are eligible for the grant. You must be a homeowner in England to qualify; this includes owner-occupiers, social and private landlords and park homeowners. People receiving benefits such as Jobseekers Allowance, Working Tax Credit and Disability Living Allowance could qualify for extra support.

In total, £2 billion has been allocated to the fund, with £1 billion available for homeowners or landlords who are not in receipt of eligible benefits, with an additional £500 million available for those who are. A further £500 million has gone into the LAD scheme.

You can find out more here.

How much can I claim?

The amount homeowners can claim will vary depending on eligibility criteria. Most homeowners can apply for vouchers of up to £5,000 which will cover two-thirds of the cost of eligible home improvements.

But those on a low income who are in receipt of eligible benefits, may be able to claim a voucher of up to £10,000 which covers the full cost of the home improvements, from survey to installation.

What home improvements could I make under the scheme?

The eligible energy efficiency improvements are divided into primary and secondary measures. Homeowners must install at least one approved primary measure to qualify for funding for secondary measures.

Primary measures include those for insulation (cavity wall, solid wall, underfloor or roof insulation) and low carbon heating (such as heat pumps and solar thermal panels).

Secondary measures include replacing single glazing with double or triple glazing or secondary glazing, upgrading to more energy efficient doors, and improvements to heating controls and thermostats for hot water tanks and appliance tanks.

The amount of funding for secondary measures will match the amount allocated for primary measures. So, homeowners who get a grant of £2,000 for primary measures would get an identical grant for secondary measures.

And you can have confidence in the tradespeople who install these energy efficiency improvements in your home because under the Green Homes Grant they must be accredited via the government-endorsed Trustmark scheme or the Microgeneration Certification Scheme (MCS). There are strict accreditation rules, giving you peace of mind.

How much could you save?

There are potentially two big savings you can make by utilising the Green Homes Grant.

The first is the actual saving on the cost of the primary and secondary measures you’re having installed, and the second is the subsequent savings you’ll continue to receive as your energy bills go down.

As mentioned before, most households will be eligible to receive a £5,000 voucher which covers up to two-thirds of the cost, whilst some may receive a voucher of up to £10,000 which covers the whole cost. To put this into context, for an insulation measure that would usually cost £4,000, a homeowner would get a voucher from the government for £2,680 and would pay just £1,320.

There are also significant savings that can be made on your monthly energy bill. Potential savings will vary from home to home and, depending on the energy efficiency measures installed, savings could range from £4 a year for insulating pipework, to £165 for insulating cavity walls, to £690 for installing an air source heat pump4.

How can you apply for a Green Homes Grant?

To find out more about the support available through E.ON, click here. Note that if you get a grant and the work goes ahead, all work must be completed by March 2021.

1. Homeowners to see savings available under new Green Homes Grant scheme (28 August 2020)

2. Electricity backed by 100% renewable sources. E.ON's renewable generation assets, agreements with UK wind generators and the purchase of renewable electricity certificates. The electricity supplied to your home comes from the National Grid and DNOs.

3. SME customers that sign a contract directly with E.ON. Electricity sourced from E.ON’s renewable generation assets, supply agreements with independent UK wind generators and the purchase of renewable electricity certificates. The electricity supplied to homes and businesses comes from the National Grid.

4. Energy Saving Trust