From 'early' June 2014, householders in England and Wales will be able to claim back more money for the energy-efficiency improvements they make to their homes under the Green Deal.
The Green Deal, which officially launched last January, enables households and small businesses to take out loans to make 45 different types of adjustment to their property in the interest of energy savings. The loan would then be repaid through electricity bills by whoever is using the property.
It is intended to reduce the effects of heat escaping from ‘leaky buildings’, responsible for 38 per cent of the UK’s greenhouse gas emissions.
However, applicants will only be successful in taking-up the Green Deal if the energy savings a property makes in a 25-year period (it is possible to choose a shorter period of time, but return on investment must be paid for within the time period) must be equal to or more than the cost of implementing the changes in the first place. This caveat is known as the ‘golden rule’.
Improvement Fund details
Under changes to the rule (following slow take-up), from June 2014, householders will be able to claim back up to £7600 for energy-efficient improvements they make to their home.
The new Green Deal Home Improvement Fund (GDHIF) will see domestic energy customers offered:
- up to £1000 (100 per cent of costs) for installing two measures of the following:
- solid wall insulation
- condensing gas boiler (on mains gas)
- double glazing (replacing single glazing)
- secondary glazing
- replacement doors
- cavity wall insulation
- floor insulation
- flat roof insulation
- room-in-roof insulation
- replacement warm air unit
- replacement storage heaters
- flue gas heat recovery units
- waste water heat recovery systems;
- up to £6000 for installing solid wall insulation (75 per cent of the costs of installation); and
- up to £100 refunded for their Green Deal Assessment (which costs approximately £150).
The scheme also entitles those who have brought a property in the 12 months prior to application to qualify for up to an additional £500 if they carry out energy efficiency improvements.
Eligibility test
To be eligible, a customer must have the improvements recommended on an eligible Energy Performance Certificate (EPC), less than 24 months old, or a Green Deal Advice Report (GDAR).
However, households cannot combine GDHIF with funding from the Energy Company Obligation (ECO), the Green Deal Communities Scheme, or the existing Cashback scheme for the same installation, but they can apply to it for any further improvements they are advised to take by an EPC or GDAR.
Once householders have received their GDHIF voucher, improvements must be installed by a registered Green Deal Installer or Provider within six months. Payment will be received within ten working days of submission (providing the relevant documentation is submitted).
The Green Deal Home Improvement Fund also applies to private or social landlords and tenants, as long as they are paying for the improvements themselves and haven’t received more than €200,000 (approximately £160,000) of government funding in the last three financial years.
‘Making it simpler and cheaper for people to stay warm’
Launching the GDHIF today (1 May), Energy and Climate Change Secretary Ed Davey said: “The best way for households to take control of their energy bills is to use less energy.
“Faulty boilers, draughty windows and insufficient insulation all cause properties to leak hundreds of pounds every year. But advice and support through the Green Deal can help put a stop to this.
“By installing energy saving improvements, families across the country can enjoy the benefits of warmer, more energy efficient homes and lower bills.”
Climate Change Minister Greg Barker added: “The Green Deal Home Improvement Fund is another way the government is making it simpler and cheaper for people to stay warm and improve their homes.
“I want households across the country to benefit from more energy efficient homes and reduced bills through the Green Deal, and that is what the new home incentive fund will do.”
A separate scheme will apply in Scotland. Scottish households seeking home energy efficiency advice should contact Home Energy Scotland on 0808 808 2282.
Find out more about the Green Deal.
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