Government lays down rules for Green Homes Grant scheme

Householders will only be able to access the government’s new Green Homes Grant scheme if they install low carbon heating systems or insulation, according to new rules issued by the Department for Business, Energy and Industrial Strategy.

The fillip for heat pumps and solar thermal devices is contained within guidance on how the new £2 billion voucher scheme, unveiled by chancellor of the exchequer Rishi Sunak in last month’s budget, will operate.

Most homeowners will be able to secure upfront grants of up to £5,000 to help pay for the installation of energy efficiency measures and low carbon heating systems. The guidance specifies that in order to qualify for grants, households will need to install at least one “primary measure”- either insulation, a heat pump or a solar thermal device.

If they fit one of these, households will also be eligible for further energy saving measures, like double or triple replacement glazing, energy efficient doors and hot water tank thermostats or heating controls. But the grants for these so-called “secondary” measures will be capped at the amount provided for the primary installations, like insulation and low carbon heating.

In order for low carbon heating to be fitted, households will need to have adequate insulation, which can be installed as part of a package, according to the guidance. As well as owner-occupiers, landlords of social and private rented homes will be eligible for the Green Homes Grant scheme.

The government has also urged tradespeople to register with the TrustMark or Microgeneration Certification Scheme (MCS) in order to participate.

Business and energy secretary Alok Sharma said: “Our TrustMark scheme will guarantee that building work is completed to a high standard by accredited tradespeople, ensuring consumers are fully protected.”

The government has previously said that typical households can expect to receive “at least” two thirds of the costs of installing eligible measures up to a maximum of £5,000.

Poorer households, which according to the guidance include people on a variety of benefits as well as low-income workers receiving tax credits, will be offered up to £10,000 of upgrades completely free.

Vouchers will start to be issued from the end of September, which is also when work can commence.

Cam Witten, policy manager at the Solar Trade Association (STA) said the prioritisation of solar thermal in the scheme is a “strong endorsement” of its “important role” in the decarbonisation of heating.

However, Stewart Clements, director of the Heating and Hotwater Industry Council, expressed disappointment the grants would not support a broader range of technologies.

He said: “It would have made greater sense to include a wider set of home improvement measures such as new hot water cylinders, heating controls, and radiators.

“Currently, hot water storage offers the only inexpensive practical solution for storing energy and banking it for when it needs to be used. We believe this is a missed opportunity.”