Our last update confirmed that boilers were not going to be included in the Green Homes Grant Scheme. The question is, why didn’t the Green Homes Grant, a £2 billion government-funded scheme work?
The Green Homes Grant ended as quick as it started, running for only six months. The decision to end the scheme received a lot of negative comments around what could have gone wrong. Editor of Registered Gas Engineer magazine, Nicki Shearer questioned in an article, whether it was the lack of installers willing to put themselves through the required accreditation process, the knock-on effect on consumers that couldn’t find an installer when they needed one, or delays in payments to engineers?
Results showed that only 10% of the schemes 600,000 first year installation were achieved.
When the scheme launched in September 2020, Peter Thom from Green Heat asked the BEIS at a virtual Energy Efficiency Association meeting how many installers had uncoupled themselves from the scheme.
"The BEIS did not know and, more worryingly, did not appear to care"
So, what happens next?
Peter Thom states that there needs to be a solution for the professional heating engineer to lead the way towards zero-carbon, without such strong rules and regulations.
The Government say that the funding originally used for the scheme will now e used for local authorities, extending the Local Authority Delivery Scheme and targeting low-income households.
It has been confirmed today that boilers will not be included in the Green Homes Grant Scheme.
It was confirmed homeowners will be able to spend vouchers with installers who are accredited to the PAS2030 or Microgeneration Certification Scheme for solid wall, under-floor, cavity wall or roof insulation, air source or ground source heat pumps, solar thermal.
Further, secondary, energy-saving measures can include double or triple glazing/secondary glazing, upgrading to energy-efficient doors, plus hot water tank/appliance tank thermostats and heating controls.
The director of technical communication and product management at Worcester Bosch, said:
“Although we support any scheme that actively tries to improve the efficiency of UK homes, the fact that upgrading boilers are not included in this grant is an oversight. There is still anything up to 6 million non-condensing boilers in operation so upgrading to a high efficiency condensing boiler would have made a significant improvement to these homes."
The government announced in its Summer Statement (8th July 2020) a £3billion Green Jobs Package that will allow homeowners and landlords to apply for up to £10k vouchers towards making their homes more energy-efficient.
As part of the Green Homes Grant scheme, eligible homeowners will be able to use the vouchers to help pay for environmentally friendly home improvements such as installing loft, floor and wall insulation, or double-glazing.
Rishi Sunak said the funding will help to make 650,000 homes more energy efficient while saving households £300 a year on bills. He also said the measures will be the carbon-cutting equivalent of taking 270,000 cars off the road while supporting around 140,000 green jobs.
The scheme will likely start in September 2020 and will run for a year until September 2021.
How do I apply for the Green Homes Grant?
If you wish to apply for the Green Homes Grant and receive government vouchers towards the cost of your new boiler then you will need to apply online to see if you qualify.
Currently, the application website hasn’t been created but it is anticipated that it will be available by September 2020. We will keep you updated on any further developments by updating this blog and on our social media pages, so make sure you follow us on Facebook and/or Twitter for updates.
You can also apply by contacting the Energy Saving Advice Service (0300 123 1234) for updates.
How much can I get towards a new boiler on the Green Homes Grant scheme?
Unfortunately, it has been confirmed that new boilers will not be included as part of the Green Homes Grant scheme. However, the grant will cover two-thirds of the cost of energy-efficiency improvements such as solid wall, under-floor, cavity wall or roof insulation, air source or ground source heat pumps, solar thermal, with the homeowner paying the final third.
This means that for an improvement costing £4,000 a homeowner would pay £1,320, while the Government would contribute the remaining £2,680.
A maximum of £5,000 will be available per household but low-income households will not have to contribute anything to the cost and could receive up to £10,000, Business Secretary Alok Sharma told the BBC earlier this week.
Who is eligible to receive a grant from the Green Homes Scheme?
Homeowners and landlords with properties in England are eligible to receive a grant, homes in Scotland, Wales and Northern Ireland are unfortunately not covered under the Green Homes Scheme.
Details about the scheme are quite vague at the moment but we understand that there is unlikely to be any means assessed criteria. So in essence, every household in England will be eligible to claim vouchers.
Given that there is an increased voucher amount for low-income families, it’s likely that some kind of benefits received will trigger the increased voucher amount in the same way the ECO boiler scheme works.
If we were to guess how the scheme will work based on our knowledge of past government schemes, we would guess that eligibility will be based on a home assessment. An energy-efficiency assessor will come to your home and estimate the benefits to you and the environment you would receive from upgrading.
If you stood to benefit by replacing single glazed windows for double and installing loft insulation then you would be granted the vouchers. If your home is already energy-efficient then it’s unlikely you would be granted the vouchers.
This is similar to how the Green Scheme worked under the coalition government so it would make sense that it will be something similar to judge eligibility for this scheme too.
How is the Green Home Scheme different from the ECO Grant scheme?
The ECO (Energy Companies Obligation) Grant scheme is a government scheme with the biggest energy companies in the U.K to cover the costs of installing a new boiler for low-income families.
It’s worth reading our article on the ECO boiler grant scheme to see whether you may be eligible for a free boiler that way.
The Green Homes Scheme seems to differ in that it is more widely accessible and the qualifying criteria seems to be less stringent. It also seems like the process will be a lot simpler, from application to getting your vouchers. The ECO scheme was often criticised for being quite a convoluted process with a lot of red tape.
Another criticism of the ECO boiler grant scheme was that it was essentially a long term loan, you wouldn’t pay for the boiler installation upfront but your energy bills would increase to cover the cost over a course of years.
It hasn’t been confirmed whether boilers are included in the Green Home Scheme so it may be that the ECO Grant scheme is for boilers and the Green Home Scheme is for all other energy-efficient home-improvements (cavity/loft insulation, double glazing).
The Green Home Scheme is only available to residents of England whereas the ECO Scheme includes Wales & Scotland.
Both schemes aim to improve the energy efficiency of homes, saving the homeowner money on heating bills, and reducing carbon emissions to enable the U.K to reach its carbon-neutral obligation by 2050.
How do I get a new boiler if I’m ineligible for the scheme?
Boilers are not included in the Green Homes Scheme Grant, so how else can you get one if you don’t have the money to buy a boiler outright?
WarmZilla offers flexible finance options on new boilers with payment terms from 1 – 10 years, meaning you can spread the payments to a monthly amount you can afford. No deposit options are available, so if you don’t have any money for a boiler deposit, you can just spread it out over the monthly payments.
Monthly payments start at £10.68 per month, which is often lower than the price of boiler cover or boiler rental – for a brand new boiler with a guarantee, system filter, smart thermostat, and system cleanse.
Our finance providers have a high acceptance rate, even for customers with bad credit history.
Here are some boiler finance package examples to give you an idea of cost**
11.9% APR – Worcester 12Ri Boiler:
Representative Example: Amount of Credit £825.00. Deposit £825.00. 120 Month Agreement. Total Purchase Price £1650. 120 Monthly Payments £10.68 p.m. Interest £456.04. Interest rate 11.9% p.a. Representative APR 11.9%. Total amount Repayable £2106.04. Example boiler: Worcester Bosch 12ri. WarmZilla Limited acts as a credit broker and not a lender. Any credit is subject to our lender’s criteria.
0% APR – Worcester 25Si Boiler:
Representative Example: Amount of Credit £1089.50. Deposit £1089.50. 24 Month Agreement. Total Purchase Price £2179. 24 Monthly Payments £45.40 p.m. Interest £0. Interest rate 0% p.a. Representative APR 0%. Total amount Repayable £2179. Example boiler: Worcester Bosch 25si. WarmZilla Limited acts as a credit broker and not a lender. Any credit is subject to our lender’s criteria.
Other options for getting a new boiler outside of the grant scheme include renting but we don’t recommend this way of purchasing as it’s more expensive than just buying a boiler on finance.
Some companies will offer no upfront cost of installation and then charge you £39.99 per month as a service charge (plus an additional 3% price increase per year). This method can see you paying 5 times the amount you would pay buying a boiler on finance from WarmZilla.
Even though boilers aren’t included in the Green Homes Grant Scheme, there is still a good saving to be made on solid wall, under-floor, cavity wall or roof insulation, air source or ground source heat pumps, and solar thermal. This is probably more useful for those looking to improve insulation rather than get heat pumps installed, as the cost can be quite prohibitive as discussed in our future of the heating industry blog.
If you think your home may benefit from double-glazed windows or improved insulation then this scheme will probably save you quite a lot of money if you meet the qualifying criteria.
We recommend you shop around and get some quotes on your new boiler to make sure you get the best deal available. We’ve made it easy by offering a ‘Best Price Guarantee’ – our prices are monitored to ensure we offer the best boiler prices on the market. If you find a cheaper like-for-like boiler quote elsewhere – we’ll beat it by £50.
You can get an instant fixed price boiler quote from WarmZilla in just a few minutes by answering some simple questions in our online survey about your home. Our system will calculate your heating and hot water requirements and suggest suitable boilers for your home.
We can install a new boiler within 48 hours of purchase, sometimes even sooner if it’s an emergency.
We hope you find a solution that suits your needs. If you have any questions about boiler grants or anything else boiler-related please use our live chat or email email@example.com for more information.