Collective effort to prevent collapse of the Green Homes Grant


26 February 2021

Stakeholders involved in the energy efficiency and low carbon heating sector have rallied to address rumours of the Government's intention to scrap the Green Homes Grant with a letter to government officials.


Writing to Lord Callanan, Minister for Climate Change and Corporate Responsibility - the energy efficiency and low carbon heating sector said 'it is concerned by recent rumours that the scheme will come to an early close on March 31st 2021.' Raising the worry that the '£320 million of the funding allocated for 2021/22 may be recalled.'


They went on to say, 'Such a decision could have significant financial implications for businesses who have invested in developing the capacity to meet the demands of the scheme; it would also undermine the trust of homeowners who have applied for vouchers for home improvements yet to be delivered.'


Derek Horrocks, chairman of the National Insulation Association, said: "Stable policy is needed to provide the industry with the confidence it needs to invest and adapt to the demands of the net zero transition. Enquiries for insulation and low carbon heating have been extremely high, despite the current circumstances. Companies across the sector have responded and geared up the supply chain to meet demand.

"That's why we would urge the Chancellor not to curtail the Green Homes Grant to ensure that our sector can lead the UK's economic recovery and meet the Government's net zero ambitions.


Green Homes Grant


The GHG is designed to support energy-saving improvements to UK homes. It aims to cut carbon emissions from UK households in line with the Government's environmental target of Net Zero by 2050.


Announced last summer and launched in September, the GHG was initially due to run for a period of six months. It was heavily over-subscribed, with many prospective customers reporting difficulties in finding available installers, and was extended by 12 months to the end of March 2022.


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It can run alongside the Domestic Renewable Heat Incentive (RHI), which allows households to receive quarterly payments over a period of seven years to offset the initial costs. The amount of the GHG is deducted from this, reducing the total RHI available to reclaim.


Households can claim online for vouchers covering two thirds of the cost of eligible projects, up to a maximum of £5,000. The limit for low income households is £10,000 and these homeowners may not need to make a contribution.


Vouchers must be used to install at least one primary measure as identified by the Government. This covers air source, ground source or hybrid heat pump systems, biomass boilers and, following successful lobbying for inclusion, solar thermal (liquid-filled flat plate or evacuated tube collector).


Signatories to the letter include:




The Association for Decentralised Energy (ADE), Heat Pump Association (HPA), The Insulated Render and Cladding Association (INCA), Insulated Assurance Authority (IAA), Microgeneration Certification Scheme (MCS), National Insulation Association (NIA), Association for Renewable Energy and Clean Technology (REA), Renewable Energy Assurance Ltd (REAL), Solar Energy UK, Sustainable Energy Association (SEA), Solid Wall Insulation Guarantee Agency (SWIGA), Caplor Energy, Interglow, Insta Group, Pacifica Group, Permarock, Saving Energy UK, Sustainable Building Services and Westville Group