The Green Deal was launched in January 2013 to help households fund home improvements that will increase the energy efficiency of their home.
Home improvements delivered with the help of the Green Deal are expected to reduce your energy bills. The Green Deal lets you pay for some or all of the improvements over time through your electricity bill. The scheme is designed in a way that repayments should be no more than what you would save in your energy bills.
Initial failure to take-off
Whilst the Green Deal offers lots of benefits to households it has never really taken off.
The scheme has received some poor publicity, its approach has proved overly complicated, and not enough certified Green Deal "Providers" and "Installers" have been recruited to implement the scheme on the ground.
A key element of the Green Deal is its ability to let homeowners earn money from their energy efficient home improvements to offset the cost of having the work done. However this aspect of the Green Deal has proven to be over-complicated. The Government is seeking to tackle this problem.
The new Green Deal Home Improvement Fund (GDHIF) launches on Monday 9 June 2014 in England and Wales. A similar scheme called the Green Homes Cashback is being launched in Scotland.
The Government expects that the relaunched scheme, which is more user-friendly and which offers more generous terms than the previous Green Deal "cashback scheme", will encourage more households to take up the Green Deal.
The Energy and Climate Change Secretary Ed Davey has described the scheme as:
“The best way for households to take control of their energy bills is to use less energy."
The Climate Change Minister Greg Barker has also lauded the new scheme:
“The Green Deal Home Improvement Fund is another way the Government is making it simpler and cheaper for people to stay warm and improve their homes.
I want households across the country to benefit from more energy efficient homes and reduced bills through the Green Deal, and that is what the new home incentive fund will do.”
The Green Deal Home Improvement Fund - at a glance
The Green Deal Home Improvement Fund (GDHIF) is a new incentive scheme open to all householders in England and Wales wanting to improve the energy efficiency of their homes.
Under the GDHIF households that install energy efficiency measures such as solid wall insulation and new heating systems can earn up to £7,600 to help cover the cost of the energy efficiency improvements.
The Green Deal Home Improvement Fund - in detail
Under the GDHIF householders can receive:
- up to £1000 for installing two measures from an approved list; and/or
- up to £6000 for installing solid wall insulation; and
- up to £100 refunded for their Green Deal Assessment.
The scheme also entitles those who have bought a property in the 12 months prior to application to qualify for up to an additional £500 if they carry out energy efficiency improvements.
Householders will be able to receive GDHIF funding for solid wall insulation and/or any two of the following energy savings improvements:
- Condensing gas boiler (on mains gas)
- Double glazing (replacing single glazing)
- Secondary glazing
- Replacement doors
- Cavity wall insulation
- Floor insulation
- Flat roof insulation
- Room-in-roof insulation
- Replacement warm air unit
- Replacement storage heaters
- Flue gas heat recovery units
- Waste water heat recovery systems
How can I claim the GDHIF payment?
Your Green Deal "Provider" and "Installer" will help take you through the process of making a claim. In summary, you will need to take the following steps to apply for and claim their GDHIF payment:
- have a valid Green Deal Assessment Report or Energy Performance Certificate (EPC) which must have been carried out in the two years prior to application;
- apply for measures as recommended on their Green Deal Assessment Report or EPC;
- register for their GDHIF voucher;
- once they have received their voucher, householders must have the improvements installed by a registered Green Deal "Installer" or "Provider" within six months;
- once the work has been completed, submit their voucher – countersigned by the Green Deal Installer or Provider – with copies of the invoice, PAS2030 Claim(s) of Conformity, and their Green Deal Assessment Report invoice;
- Once the GDHIF administrator has validated the voucher, you will receive payment in ten working days.
The Government has published an advice sheet on the GDHIF which can be downloaded at www.gov.uk.
Information about certified Green Deal "Providers" and "Installers" can be found on the Green Deal Oversight Body website.