Government reduces cashback on Green Deal after only six weeks


Updated on 24 July 2014 | 1 Comment

The home energy efficiency scheme is so popular that they’ve already reached their £50 million milestone.

The Department of Energy and Climate Change (DECC) has cut the cashback on its flagship Green Deal energy efficiency scheme as it’s had so much uptake.

Since improved cashback amounts were launched six weeks ago, 12,200 applications have been received and 7,925 homes across England and Wales have already received home improvement vouchers.

The latest phase of the scheme was put in place to help homeowners fund improvements to their property’s energy efficiency by installing things like solid wall insulation and new heating systems.

The new Green Deal Home Improvement Fund

From 25th July, there will be less cashback for new applicants. For example, homeowners will receive £4,000 for installing solid wall insulation, down from £6,000 previously. With the average cost of insulation £9,950 many homeowners will have to fund around half the cost themselves.

However, they can also receive up to £1,000 for installing two measures from an approved list and/or £1,000 refunded for having a Green Deal Assessment carried out on their home.

On top of that, the fund entitles those have bought a property in the last 12 months to an additional £500 if they have energy improvements done that are recommended by Green Deal providers.

With this new phase, the total available cashback for homeowners has decreased from £7,600 to £5,600.

Any applications that are received before Friday will be honoured at the original rate.

The approved list of energy efficiency measures includes:

  • Condensed mains gas boilers
  • Fan-assisted storage heaters
  • Flue gas heat recovery
  • Replacement warm-air units
  • Waste water heat recovery
  • Cavity wall insulation
  • Double/triple glazing
  • Flat roof insulation
  • Floor insulation
  • Secondary glazing
  • Energy efficient replacement doors

Flue gas heat recovery will be removed from the list from 5th August.

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Changes for wider benefit

The DECC has £120 million is still available in the pot on a first come, first served basis so that more people can take advantage of the scheme.

But get in quickly as the rates may well change again.  

How to claim cashback for improvements

If you’re interested in the Green Deal Home Improvement Fund, make sure you apply for the voucher before the work starts. It’s also important that measures are recommended in an Energy Performance Certificate (EPC) or Gas Distribution Access Rule (GDAR) that has been carried out in the past 24 months.

Once the voucher is received, you must have the work done by a Green Deal installer or provider within six months. Send away a copy of your voucher once the work is finished. Make sure it’s countersigned by the installer or provider with copies of the invoice, PAS2030 Claim of Conformity and Green Deal Assessment report invoice enclosed.

Your cashback payment should be received within 10 working days.

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Are you interested in the Green Deal Home Improvement Fund? Tell us in the Comments below.

More on energy saving:

Alternative energy-saving techniques: will they save you money?

Ten ways to save on energy

Where to get help with paying your energy bills

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