The Green Homes Grant started in September 2020 is a scheme set up by the UK Government to help homeowners make energy-efficient improvements to their properties. These improvements can range from insulation in the roof, floors, and walls to the installation of heat pumps and solar thermal panels. The grant offers homeowners a voucher that covers up to two-thirds of the cost of these improvements, up to a maximum of £5,000. For low-income households, the voucher can cover 100% of the cost, up to £10,000.
But is it possible to combine this scheme with other finance options, such as a mortgage or other grants? Is every installer or improvement eligible for this grant? How can the Green Homes Grant help in ensuring homes are green with energy-efficient measures? Let’s delve into the details.
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The Green Homes Grant and Mortgages
You may be planning to purchase a property that needs some energy efficiency improvements and wondering if you can incorporate the cost of these improvements into your mortgage. While the Green Homes Grant does not directly address this, it is possible in some cases.
Some mortgage lenders may be willing to lend extra on a mortgage for energy-efficient improvements. This is typically known as a Green Mortgage. These mortgages often offer preferential interest rates or additional borrowing above the standard loan-to-value ratio to finance energy-saving measures in the property.
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However, you should note that not every mortgage lender will offer this, and those that do will likely have their own criteria and conditions. It’s essential to discuss this option with your mortgage provider at the time of application. If a Green Mortgage isn’t an option, you may still be able to use the Green Homes Grant alongside other mortgage borrowing, as long as the total borrowed doesn’t exceed the lender’s maximum loan-to-value ratio.
Choosing an Installer and Eligible Improvements
The key to effectively using the Green Homes Grant is to understand the eligible measures under the scheme and choose a reliable, certified installer. The scheme covers green improvements in two categories: primary measures and secondary measures.
Primary measures include insulation and heating improvements. For insulation, you are eligible for measures like solid wall, cavity wall, under-floor, loft, or roof insulation. For low carbon heat measures, heat pumps (air source, ground source, or hybrid), solar thermal, and biomass boilers are covered.
Secondary measures include things like double or triple glazing, energy-efficient doors, and heat controls. However, you can only receive funding for secondary measures if you are also installing a primary measure, and the amount you can receive will not exceed the amount granted for primary measures.
As for the installer, you should ensure that they are TrustMark registered and MCS certified to be eligible under the scheme. This will ensure that the work done meets the standards defined by the scheme, and you can apply for the voucher confidently.
The Green Homes Grant and Other Grants
The Green Homes Grant can also be combined with other green energy grants, providing homeowners with the needed financial help to make their homes more energy-efficient. For instance, it can be used alongside the Domestic Renewable Heat Incentive (RHI) scheme. The RHI is a government scheme that provides financial support to homeowners who install renewable heat technologies, such as biomass boilers or heat pumps.
However, it’s crucial to understand that the money received from the Green Homes Grant will be deducted from the total RHI payments. Nevertheless, the combination of these two schemes can significantly reduce the upfront cost of installing renewable heating technologies in your home.
How the Green Homes Grant Helps in Making Homes Green
The Green Homes Grant provides a significant opportunity for homeowners to make their properties more energy-efficient and reduce their carbon footprint. By offering financial support for energy-efficient improvements, the scheme encourages homeowners to take steps towards creating greener homes.
These improvements not only help in reducing greenhouse gas emissions but also lead to significant savings on energy bills over time. The insulation measures, for example, can reduce heat loss and maintain a comfortable temperature in your home, leading to reduced energy consumption for heating. Similarly, installing renewable heating systems can reduce reliance on fossil fuels and contribute to a greener energy system.
In conclusion, the Green Homes Grant is a flexible scheme that can be combined with other financial options. Whether it’s a mortgage or another grant, homeowners have multiple avenues to finance their green home improvements. By understanding the details of the scheme and carefully planning your improvements, you can make the most of this opportunity to create an energy-efficient home.
Around the Green Homes Grant Scheme Administrator
The Green Homes Grant has a dedicated scheme administrator in charge of ensuring the smooth operation of the grant. The role of the scheme administrator is crucial and encompasses various responsibilities. These include validating the applications, issuing the vouchers, and conducting checks post-installation to ensure that the improvements were carried out correctly and align with the terms and conditions of the scheme.
When you plan to apply for the grant, it’s important to understand the role of the scheme administrator. Not only do they oversee the grant process, but they’re also your go-to contact for any queries or issues regarding the grant. They provide guidance on what works can be carried out under the scheme, the steps involved in the application process, and how the voucher redemption works.
An important step in the process is choosing a TrustMark registered and MCS certified installer. The scheme administrator can guide you on this by providing a list of registered installers in your area. They also ensure that the work done by these installers meets the standards and requirements of the scheme.
It’s also worth noting that the scheme administrator monitors compliance with the terms and conditions and can withhold or reclaim the voucher if any breaches are identified. As such, it’s essential to ensure that the work carried out aligns with the eligible measures and the rules of the scheme.
The Green Homes Grant and the Green Deal
The Green Homes Grant is not the first government initiative aimed at improving energy efficiency in homes. The Green Deal was a similar scheme that was launched in 2013 but was discontinued in 2015. However, there are significant differences between the two schemes, and the Green Homes Grant is designed to avoid some of the issues that plagued the Green Deal.
One of the major criticisms of the Green Deal was that it was a loan scheme, which means homeowners had to repay the cost of the improvements over time. On the other hand, the Green Homes Grant is a voucher scheme that covers a certain percentage of the cost of the improvements, and homeowners do not need to repay it.
Moreover, the Green Homes Grant offers more generous terms, especially for low-income households. Under the Green Deal, all households had to repay the loans, but in the Green Homes Grant, low-income households can get a voucher that covers 100% of the cost up to £10,000.
Finally, the Green Homes Grant has a clearer and more streamlined process compared to the Green Deal. The scheme administrator plays a central role in ensuring that the process is smooth and transparent for homeowners. They provide guidance and support throughout the application and redemption process, making it easier for homeowners to take advantage of the scheme.
Conclusion
The Green Homes Grant represents a significant opportunity for homeowners in the UK to make their homes more energy-efficient and help the country achieve its environmental goals. From wall insulation to low carbon heating systems, the scheme covers a wide range of improvements that can help reduce carbon emissions and save on energy bills.
Whether you’re planning to use the grant in combination with a mortgage, another grant, or standalone, it’s essential to understand the details of the scheme. Keep in mind the role of the scheme administrator, the eligible improvements, and the terms and conditions. By doing so, you can maximize the benefits of the grant and contribute to a greener future.
