Press release

£70 million for home energy efficiency through the Green Deal Home Improvement Fund Release 3

This news article was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

More people will enjoy a warmer home for less thanks to the third release from the Green Deal Home Improvement Fund (GDHIF) worth up to £70 million.

More people will enjoy a warmer home for less thanks to the third release from the Green Deal Home Improvement Fund (GDHIF) worth up to £70 million.

From midday, Monday 16 March, the popular scheme will open to new applications for the new release of funding, with up to £5,600 available to households in England and Wales to help with the cost of installing certain energy saving measures such as solid wall insulation, double glazing, boilers, cavity wall and floor insulation.

Energy and Climate Change Secretary Ed Davey said:

We’re helping families keep warmer for less – driving bills down by encouraging more competition between energy suppliers and making over one million homes more energy efficient.

Households up and down the country are reaping the benefits of a warmer home thanks to the Green Deal Home Improvement Fund. And now, with more money available, thousands more can benefit.

More than 25,000 households have already received a voucher for The Green Deal Home Improvement Fund since it launched in June 2014. For the third release of funding, money has been increased for the two measures offer. Domestic energy customers will be able to receive:

  • up to £3750 for installing solid wall insulation;
  • and/or up to £1250 for installing two measures from an approved list;
  • up to £100 refunded for their Green Deal Assessment;
  • up to £500 more if applying within 12 months of buying a new home.

The £70 million for the third release will be available for applications for solid wall insulation and/or the two measures offer until all the funding is allocated.

Energy and Climate Change Minister Amber Rudd said:

This winter the government has helped people save money while keeping warm - taking an average of £50 off household bills and making it quicker and easier to switch supplier. But to cut bills every winter people need to use less energy.

We’ve already improved over one million homes to make them more energy efficient and we want to help more. Thanks to the Green Deal Home Improvement Fund thousands of families will enjoy lower bills and a warmer home for years to come.

Martin Lewis, founder and editor of MoneySavingExpert.com, says:

There’s nothing that generates action better than free cash – which is what effectively the Home Improvement Fund is. So yet again demand is likely to be huge - the first time it was done £120m went in six weeks, then £24m went within 48 hours, so this time I suspect £70m to last not much longer than a week.

I’d suggest anyone who has already had a Green Deal assessment to be ready to pounce to make sure they aren’t left out in the cold. For those who haven’t but are interested, first do a quick online check which will tell you if it’s worth getting an assessment, if it is, then try and arrange one as soon as possible.

To complete the two-stage application process, householders will need:

  • A Green Deal Advice Report (GDAR) or Energy Performance Certificate (EPC) that is less than two years old;
  • A quote from a GDHIF registered installer or provider for work specified on the GDAR or EPC and included on the list of GDHIF approved measures; and
  • Proof of property ownership (for landlords/undertakings only) Householders are encouraged to get more than one quote, particularly when they are having expensive work done, to make sure they are getting the best deal available.

The up to £70 million available for release 3 is part of the additional £100 million for household energy efficiency announced in October 2014. This funding is in addition to the £450 million already allocated to household energy efficiency from 2014 – 17.

In providing a fund to householders the Green Deal Home Improvement Fund will create job opportunities for the energy efficiency sector as a whole. More than 1100 Green Deal authorised businesses are currently registered to provide work under the scheme.

Funds are limited and DECC may vary the terms of the scheme (including the incentive rates) or suspend or close the scheme, with immediate effect, without notice and at any time.

For more information, see how the Green Deal Home Improvement Fund works and how to apply.

Notes to Editors:

1.The next release of the Green Deal Home Improvement Fund (GDHIF) will be available to householders in England and Wales from midday on Monday 16 March 2014. Households in England and Wales can get advice on how to reduce their bills and make their homes more energy efficient from the Energy Saving Advice Service (ESAS) on 0300 123 1234 (calls charged at national rates). Scottish households seeking home energy efficiency advice should contact Home Energy Scotland on 0808 808 2282.

2.The £100 million for household energy efficiency announced on 7 October 2014 is in addition to the £450 million allocated to household energy efficiency over three years, which was announced in December 2013. All parts of the UK will benefit from the funding.

3.Householders will be able to receive GDHIF funding for solid wall insulation and/or any two of the following energy savings improvements:

  • Cavity wall insulation
  • Condensing mains gas boiler
  • Secondary glazing
  • Double/triple glazing (replacing single glazing)
  • Flat roof insulation
  • Replacement warm air unit
  • Fan-assisted storage heaters
  • Energy efficient replacement doors
  • Floor insulation
  • Room-in-roof insulation
  • Waste water heat recovery

4.For solid wall insulation 67% of the costs of installation up to a maximum of £3,750 can be claimed back by the customer. For the ‘two measures’ option 100% of the costs of installation to a maximum of £1,250 may be claimed back. Customers who have purchased the property to be improved within the last 12 months may be eligible for an additional £500 home buyer’s bonus. The home buyer’s bonus and rebate towards the cost of a Green Deal Advice Report is subject to a successful voucher application, the installation of the eligible measures through the Green Deal Home Improvement Fund, and compliance with the scheme terms and conditions.

5.To be eligible to apply and complete the two stage application process, householders will need to:

  • Have a valid Green Deal Advice Report or EPC which must have been carried out in the two years prior to application;
  • Apply for GDHIF eligible measure(s) recommended on their assessment report or EPC; and
  • Apply for a voucher by filling in an application form and providing a quote for the improvements from a registered GDHIF installer or provider. Landlords (or other undertakings) will also need to provide proof that they own the property/ies to be improved.

6.Voucher payment claims will be accepted from 1st April 2015, with payments for successful claims likely to take up to 20 working days. To submit a voucher claim for payment, householders will need to:

  • Have the improvements installed by a Green Deal Installer or Provider registered with the scheme;
  • Redeem your voucher before it expires via the claims process set out on the terms and conditions. The voucher must be completed and signed by you and the Green Deal Installer or Provider – with copies of the invoice(s) and, if appropriate, the Green Deal Assessment Report invoice; and
  • Have met the scheme’s terms and conditions

7.Householders can apply to the third release of GDHIF until the £70 million available is allocated for either solid wall insulation and/or the two measures offer at which time the scheme will automatically close.

8.Weekly statistics will be published for GDHIF Release 3

9.Households cannot apply for GDHIF if they are already getting money back for the same improvements through other schemes eg the Energy Company Obligation, Green Deal Communities, Green Deal Cashback or the previous releases of GDHIF.

10.Landlords and tenants can apply for the scheme provided they are paying for more than 50% of the total costs of the improvements themselves. Landlords/undertakings are subject to for State Aid limits: they cannot receive more than €200,000 (approximately £150,000) of government funding in three fiscal years.

11.Green Deal authorised installers and providers only may register to deliver the scheme. This is to maintain the Green Deal’s high standards of consumer protection. Businesses wishing to register should contact the Green Deal Oversight Registration Body. Information about authorised Green Deal providers and installers can be found on the Green Deal Oversight Body website

12.DECC may vary the terms of the scheme (including the incentive rates) or suspend or close the scheme, with immediate effect, without notice and at any time. A rebate towards the cost of a Green Deal Advice Report is subject to a successful voucher application, the installation of the eligible measures through the Green Deal Home Improvement Fund and compliance with the scheme terms and conditions.