30th
Aug 2020
The latest details on the new Green Homes Grant have been published online providing the necessary information that should help landlords decide, whether it is in their best interest to make an application as it outlines the conditions for receiving grants from the scheme.
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Hundreds of thousands of buy-to-let landlords in September have the chance to apply for grants of up to £5,000 for home improvements for energy savings.
The chancellor Rishi Sunak announced in July that there will be a £2bn Green Homes Grant scheme not only to support the economy but more importantly increase energy efficiency in homes with around 600,000 homes that could be eligible to receive a grant.
The Department for Business, Energy and Industrial Strategy has just published the latest details and conditions for eligibility of grants which will be issued as vouchers.
There are primary and secondary categories of work to be undertaken to achieve funding, landlords and homeowners have to undertake at least one of the measures included in the primary category:
• Primary Category: insulation (such as loft, cavity wall or under-floor insulation); and/or
• Secondary Category: low carbon heating (such as air source heat, ground source heat pump or solar thermal).
Sarah Wales, an associate at law firm Womble Bond Dickinson, said: “Replacements of existing insulation or low carbon heating will not qualify for a grant but additional works to "top up" existing measures are eligible.
“In order for the installation of low carbon heating to qualify, the house will also need to have adequate insulation before it is eligible for a grant.”
So long as the energy saving improvements to be undertaken includes at least one measure from the primary category, landlords and homeowners will be allowed to claim a grant for secondary category work which includes:
• Double/triple glazing (only where replacing single glazing);
• Energy efficient doors (only where replacing doors installed prior to 2002);
• Draught proofing; and
• Heating controls and insulation, such as thermostats and smart heating controls.
Wales explains further: “Grants for secondary measures will be capped at the same amount provided in relation to the primary measures meaning if a landlord claims £1,500 for insulation, they will receive a maximum of £1,500 for double glazing.
“As we already knew, grants could cover at least two thirds of the cost of energy efficiency home improvements, up to £5,000 per household (low income home owners can claim 100% of the cost up to £10,000).
“In addition to details of what is covered by the grants, the Government have also now confirmed who can carry out such works. Contractors will need to have the TrustMark or Microgeneration Certification Scheme accreditation to be able to take part in the scheme and a list of such contractors will be provided to those applying for vouchers.”
She added: “Green Homes Grant, the green investment plan also included £1bn for energy saving works to public buildings and £50 scheme to pilot innovative solutions to decarbonise social housing at scale. We are yet to see further detail from the government on these.”
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