The Green Homes Grant Is Closed - And Why That’s NOT A PROBLEM
As of 5pm Wednesday 31st March, the Green Homes Grant Voucher Scheme is closed to new applications, thus bringing to an end the Government’s troubled energy efficiency scheme. On face value this might seem like a blow, however for heat pumps the Green Homes Grant never represented additional funding. The existing funding scheme for heat pumps - the Renewable Heat Incentive - has still got another year to run, and continues to encourage uptake of heat pumps throughout the UK.
What About My Green Homes Grant Voucher?
According to the Government announcement, all existing vouchers issued through the Green Homes Grant will be honoured:
“Following a review, the Green Homes Grant Voucher Scheme launched last year will close to new applications on 31 March at 5pm... Applications made before the end of March deadline will be honoured and any vouchers already issued may be extended upon request.”
Furthermore, the announcement adds that “all valid applications received through the Green Homes Grant Voucher Scheme up to 5pm on 31 March 2021 will be processed.”
Why Is The Scheme Closure Not a Problem
The Green Homes Grant Did not provide additional funding
Heat pumps were already supported by a Government scheme called the Renewable Heat Incentive. This rewards homeowners and self-builders who install heat pumps with an ongoing grant payment over 7 years. For air source heat pumps this is up to £1,500 per year, and for ground source heat pumps up to £4,000 per year.
Heat pumps were added into the Green Homes Grant alongside traditional energy efficiency measures like insulation, which do not have an existing grant scheme in place. In order to make sure that heat pumps were not “double funded”, the Government said that customers in receipt of the Green Homes Grant could still apply for the RHI, however the money received from the Green Homes Grant would be deducted from the ongoing RHI payments.
As such, the Green Homes Grant never represented additional funding for customers.
The Green Homes Grant Was Beset With Problems
Whilst the original vision for the Green Homes Grant was admirable, unfortunately the scheme was beset with problems. Compliance with the scheme added a whole new layer of additional administration, on top of what is already a very administration laden industry. To this end, a number of MCS accredited installers refused to take part in the scheme at all.
We decided to take part on the basis that we wanted to support our network of installers, and naturally the publicity in the scheme led to a huge amount of interest from customers in heat pumps, which was a good thing. However we have continued to experience challenges, with customers facing delays receiving vouchers and us facing delays in receiving payment from the Government for the grant money.
We have engaged with Government and our industry associations to provide constructive feedback, and so we remain hopeful that any future schemes will build on the successes of the RHI scheme, and avoid the issues that beset the Green Homes Grant scheme.
Act Now - The Renewable Heat Incentive
Heat pumps are already supported by the Renewable Heat Incentive scheme, which provides generous payments for homeowners and self-builders who install heat pump systems. The RHI scheme is open until March 2022 for new applicants. Future schemes are unlikely to be as generous, so if you are interested in an air source heat pump or a ground source heat pump for your home, then don’t hesitate to get in touch today.
CONTACT US
If you have any questions at all about the Renewable Heat Incentive or about heat pumps, then please get in touch today and speak with one of our experts.