GREEN HOMES GRANT FOR HEAT PUMPS
You may have heard about the new Green Homes Grant that was mentioned in the Government’s recent budget. This is an ‘up front’ grant of up to 2/3rds the cost of the installation up to £5,000 that home-owners will be able to apply for to make their homes more energy efficient.
As you can imagine there are certain criteria and Terms and Conditions which we have summarised below:
- The grant is available for existing homeowners who are replacing their current boiler with a Heat Pump (so not applicable to new builds or barn conversions)
- In our latest update from BEIS, we have been advised that a Green Homes Grant CAN be used in conjunction with Domestic RHI (DRHI).
- In this scenario, the homeowner will first apply for a Green Homes Grant and then subsequently can also apply for DRHI. The amount of their Grant is then taken off the value of their projected DRHI payments.
- However, this cannot work the other way round i.e. you can’t 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.
- If the customer and/or homeowner is on income or disability benefit they can claim up to £10,000 which in some cases could completely cover the cost of purchasing and installing an Air Source Heat Pump (or very close to it). A full list of which benefits qualify you for this is provided further down in this newsletter
- The ‘vouchers’ can be applied for from the end of September. On orders where we are doing the full design and Commissioning etc customers will be able to claim it via our Certification just like they do the DRHI payments.
The Green Homes Grant scheme is planned to run until 31st March 2021, and we believe customers will have a further 6 months from this date to complete the installation.
This information reflects our latest understanding, obtained from the Government’s press release and our affiliated consumer code organisation RECC. As our understanding develops, we will of course keep you up to date. You can see more detailed information below and as always just stay in
touch and come to us with any queries and we will make sure you have all the latest information yo need.
- Contractors must be MCS certified to install renewable energy measures through the scheme.
- MCS certified contractors must be a registered Trustmark business.
- The following properties are within scope of funding:
- 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 homeowners (for residential sites)
- For the low-income scheme, only owner-occupied properties and park homes are eligible.
- Households receiving income-based or disability benefits would be eligible for a fully funded package of measures. Furthermore, qualification for the £10,000 Low Income Scheme is contingent on receipt of at least one of a list of benefits, which can be viewed on this document.
Available measures are split into primary and secondary categories. At least one of the primary measures must be installed before secondary measures quality for funding.
Primary Measures include:
• Insulation: Solid wall, cavity wall, under-floor, loft, flat roof, room in roof, park home.
• Low carbon heat: Air source heat pump, ground source heat pump, solar thermal
For low-carbon heating to be installed, households will need to have adequate insulation (e.g. wall and loft, where applicable). These can be installed as part of a package – they do not have to already be in situ.
Energy Performance Certificates (EPC)
The first step to understanding if there are any additional insulation requirements is to review your current EPC. To apply for the DRHI it must be less than 24 months old.
You can check you EPC at epcregister.com, using the fourth menu item on the left enter you postcode and select your address.
If you do not have a current EPC (less than 24 months old) we strongly recommend you get a new one. Select the second menu item on epcregister.com and enter your postcode, this will bring up a list of registered EPC assessors in your area. An EPC usually costs between £60-£80 and take around 5 days to complete.
Heat Pumps At The Heart Of Government Plans
Heat pumps are listed as a “first line measure” alongside insulation, which clearly demonstrates the impact a heat pump can have at reducing carbon emissions from a home. Heat pumps have long been central to the Government’s plans for UK housing to reduce carbon emissions towards the “net
zero” emissions target. In order to access funding, customers have to install at least one first line measure, since these measures are deemed to make the biggest difference to the energy efficiency of the home.
What Do I Need To Do?
To take part in the scheme, providers of heat pumps must be MCS accredited and Trustmark registered. SWDart is MCS registered with an excellent reputation. We are also members of the Renewable Energy Consumer Code (RECC) scheme, which is an approved Trustmark scheme provider. As with any Government funding, quality is key, which is why it is a condition to the scheme that the installation of the heat pump must be signed off by an MCS registered installer.
Homeowners will need to apply for a voucher online and select SWDart on the list of MCS accredited ‘installers’. The scheme will open for applications later this month and will be open until 31st March 2021. We are awaiting final confirmation, but we believe customers will have up to 6 months thereafter to complete the installation and for the voucher to still be valid.
CONTACT US on 01626 259243
More Information About The Green Homes Grant
• The government are funding up energy efficient home improvement grants for over 600,000, supporting over 100,000 jobs in the sector
• Homeowners and landlords can apply for a voucher that funds up to two-thirds of the cost of hiring tradespeople to upgrade the energy performance of their homes – up to a maximum contribution of £5,000. It could help save families up to £600 a year on their energy bills.
• Low income and vulnerable households, including park homeowners and those on certain benefits, will be eligible for a grant covering up to 100% of the cost, up to £10,000.
• The scheme opens later this month and the closing date is 31st March 2021. We are awaiting final confirmation, but it is expected that homeowners and landlords could have up to 6 months thereafter to complete the work and claim the voucher.
• Once the works are agreed, vouchers will start to be issued from the end of September so work can commence.
• We await final confirmation, however we expect the scheme to be valid for existing homes only, and will not be valid for new build projects
• We await final confirmation, however we expect that the Green Homes Grant will be available as an alternative to the Renewable Heat Incentive, and customers will not be eligible for both