On the 9th of July 2020, the government unveiled The Green Deal, which is worth three billion pounds. One of the schemes under the new deal is the green home grants voucher, which will help around 650,000 homes in England become more energy efficient. The aim is to cut energy bills for homeowners and provide local jobs for tradespeople by providing money to people to upgrade their homes.
Please note, this deal is for England only so doesn't cover homes in Scotland, Wales, or Northern Ireland.
1. What is it?
The grant is said to provide both homeowners and landlords with a voucher of up to £5k to help cover at least two-thirds of the cost of installing green upgrades. If you are from a low-income family, you could be eligible for up to £10k.
For example, if you are installing a wall or floor insulation that costs £5k, you only need to contribute £1666, with the government paying the remaining £3334.
Green upgrades include:
Loft, wall or floor insulation
Window upgrades (double or triple glazing)
2. How do I apply?
Whilst the government announced the scheme at the beginning of July, it doesn't officially open until September and there is yet to be a firm date. To apply, homeowners will need to go online and answer some questions about their home, before selecting which green home improvement they want to make.
Once this has been completed, homeowners will be directed to local, accredited suppliers who will provide a quote for the job. Once the government has this information, they will issue a voucher.
It's as simple as that!
3. Who is eligible?
A set criterion is yet to be released, but it seems likely that most households across England will be eligible to apply. The scheme is said to benefit around 650,000 homes and will likely prove quite popular.
Although the application process is simple, we don't know just how many applications will be submitted and how long it will take for your application to be approved.
4. How will it benefit me?
A recent survey found that 1 in 3 people want to make energy-efficient home improvements, but 61% are put off by the cost. If this sounds like you, then the government footing up to 2/3s of the bill will sound like a huge benefit for you.
Once your home is more energy-efficient, you will be able to save money on energy bills. The government is estimating up to £300 a year. This is also a chance to support local businesses, who will greatly benefit due to the Coronavirus pandemic.
If you want to know how energy efficient your home already is, try using an energy efficiency calculator.
To check which home energy grants you might already be eligible for, click here.
Finally, to talk to a green deal assessor provider, head over to the government website here.
The Green Home Grants Scheme seems as though it will be far easier to navigate in comparison to the last energy deal launched in 2013. This fell through as homeowners were put off by the complex procedures. Alongside this, the focus seems to be more on financial savings rather than comfort, wellbeing, and health. When you compare the two, the GHGS is likely to be a huge success.
Last thing to note - be wary of any cold callers during this time. After the chancellor's announcement at the beginning of July, there were reports of scam calls from fake companies saying that the homeowners were eligible for the grant. If you receive a call like this, do not give any personal details.
Remember, you can only apply for this grant online from September.
We will update this article as further information is released on the Green Home Grants Scheme.
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Normette Homes specialise in property investment and tenant sourcing.