The Green Homes Grant Scheme

The Green Homes Grant Scheme
The Green Homes Grant Scheme

The Green Homes Grant Scheme

If you're a homeowner or residential landlord, you can apply for a Green Homes Grant voucher towards the cost of installing energy efficient improvements to your home.
The voucher covers up to two thirds of the cost of qualifying improvements to your home. The maximum value of the voucher is £5,000.
However, you may be able to receive a higher level of subsidy of £10,000 if you are a homeowner and either yourself or a member of your household receives one of the qualifying benefits, please visit to government website https://www.gov.uk/guidance/apply-for-the-green-homes-grant-scheme to view a list of the benefits. Please note Landlords cannot claim the high level of subsidy.

Air Source Heat Pumps are one of the Primary Measures and therefore qualify providing you meet the Eligibility criteria and the Scheme Requirements for Air Source Heat Pump Installations as detailed below:

  • All heat pump installations must be used for space heating and/or domestic hot water heating purposes.
  • A heat installation must not be used for process heating, outdoor heating or heating swimming pools.
  • With the exception of solar thermal, low carbon heat measures must entirely replace an existing fossil fuel heating system. This means you can't use the voucher to replace an existing low carbon heating system.
  • For hybrid heat pump measures, the fossil fuel element of any heating system would also need to be new, although this will not be covered by the Scheme.
  • You must declare that you either have planning permission, or that it is not required, to have the measure installed. Further advice is available on the Planning Portal website.
  • A minimum level of insulation is recommended to ensure the proper design and operation of the relevant technology in line with relevant standards.
  • Installations must be serviced in line with the manufacturer's instructions for the lifetime of the installation.

For more information, please visit the following websites;

Simple Energy Advice
https://www.simpleenergyadvice.org.uk/pages/green-homes-grant

Gov.uk
https://www.gov.uk/guidance/apply-for-the-green-homes-grant-scheme
https://www.gov.uk/check-eligible-green-homes-grant

What would the upfront costs be for an Air Source Heat Pump Installation under the Green Homes Grant Sheme?

The cost of an Air Source Heat Pump installation varies from between £10,000 - £15,000 and you as the homeowner or landlord would be expected to pay the remaining initial cost outlay of the system.
For example if your installation costs £12,000 then you would be expected to pay £8,000 upfront for the installation.

You would also be eligible to claim the Renewable Heat Incentive Grant which is an additional funding up to the value of £6,200 which is paid to you directly over a 7-year period.

What is the Renewable Heat Incentive?

The Domestic Renewable Heat Incentive (RHI) gives households money towards renewable heating costs in their home. Payments are made for 7 years and are based on the amount of renewable heat made by your heating system.

You can claim both the Domestic RHI and the Green Home Grant for the renewable heat installation. You must claim the Green Home Grant first and then notify Ofgem that you have used it when you apply for accreditation to the Domestic RHI. The Green Homes Grant will then be deducted from your Domestic RHI payments.

For example, if your RHI estimate is £10,500 then you will receive £5,000 via the voucher scheme and the remaining £5,500 will be paid to you over a 7-year period.
If you're only claiming the Green Homes Grant voucher for energy efficiency measures you do not need to notify Ofgem.

How do I apply?

You can Apply for The Green Homes Grant at the below link.
https://www.gov.uk/apply-green-homes-grant

When applying you will need to:
1. Download a copy of our quotation which we will provide to you in PDF format
2. Insert AOS Trustmark License Number - 1917200

  • The voucher will be issued with our Company details on as the nominated installer.
  • Each voucher is only valid for the measure and property you have applied for. The voucher is only for use by the named applicant and cannot be transferred to another person.
  • Work can only commence once the voucher has been issued to you. Any work that was started before that date cannot be claimed for.
  • The work must be completed and the voucher redeemed by yourself before the expiry date of the voucher. Vouchers expire after 3 months or on 31 March 2021, whichever is earlier.
  • You can apply to extend the voucher before it expires, as long as the scheme has not been closed.

Applications for the Green Homes Grant are now open. You can apply on the Green Homes Grant website.

More information on how to apply for a voucher is available on GOV.UK. Vouchers will be subject to terms and conditions, including:
•measures covered and not covered by the voucher
•criteria that must be met
•installation standards
•evidence required to demonstrate eligibility

The full terms and conditions can be found here. The Department for Business, Energy and Industrial Strategy may vary the terms of the scheme or close the scheme at any time.

What if I'm claiming other grants or funding?

Energy Company Obligation

You will not be able to claim a Green Homes Grant subsidy vouchers towards the cost of a measure which has also received funding under the Energy Company Obligation (ECO). However, you can claim both ECO and Green Homes Grant subsidy providing they are each for different measures - for example loft insulation and cavity wall insulation.

Renewable Heat Incentive

The Domestic Renewable Heat Incentive (RHI) gives households money towards renewable heating costs in their home. Payments are made for 7 years and are based on the amount of renewable heat made by your heating system.

You can claim both the Domestic RHI and the Green Home Grant for the renewable heat installation. You must claim the Green Home Grant first and then notify Ofgem that you have used it when you apply for accreditation to the Domestic RHI. The Green Homes Grant will then be deducted from your Domestic RHI payments.

Households can claim the Green Homes Grant for energy efficiency measures both before and after accreditation to the Domestic RHI.

Is there a deadline to spend the voucher?

You must redeem the voucher and ensure improvements are completed by 31 March 2021.

Who Do You Redeem The voucher?

To redeem your voucher, you'll need to confirm that:
1. the installation was completed satisfactorily before the voucher expiry date.
2. you have received the necessary documents from the installer.
3. you have paid your share of the costs to the installer (if applicable).
4. you meet the relevant eligibility requirements.
5. You will need to provide a dated copy of the invoice issued by AOS.
When you redeem your voucher the grant will be paid on your behalf directly to AOS as the installer.

When can I apply for the Renewable Heat Incentive?

You can only make your application to the Renewable Heat Incentive Scheme after your installation has been completed.
It is the homeowner's responsibility to make the application for the Domestic RHI and you'll need:

  • Your MCS certificate number (which can be found on the attached MCS certificate that will be issued once payment for the works has been received)
  • Your Energy Performance Certificate (EPC) number.
  • Your AOS Invoice.

You can Apply for The Domestic Renewable Heat Incentive at the below link.
https://domesticrhi.ofgem.gov.uk/