Green Deal cashback incentives announced

The Government is offering a total of £125 million in cashback to kickstart its flagship Green Deal energy efficiency programme.

The Government has announced that cashback will be available to people in England and Wales who take up the Green Deal when finance is available in January.

This means early applicants for a loan for work to improve the energy efficiency of their home, such as insulation or replacement glazing, could receive up to £1,000 in cashback. The amount will depend on how much work is carried out, but it will be capped at 50% of the householder’s contributions to costs.

The Government is making a total of £125 million available, although only the first £40 million will be guaranteed at the rates announced.

It’s a first come, first served offer and you have to arrange the work through a Green Deal provider to be eligible for the cashback.

Cashback amounts

Here are the cashback amounts being offered now:

* A minimum of 50% of external walls must be insulated to qualify for cashback.

** Cannot be claimed at same time as boiler replacement (as this is a regulatory requirement).

The work must also be completed within specified timelines, which are six months for solid wall improvements and three months for other improvements. All improvements have to be finished by 31st March 2014.

Although the Green Deal finance won’t be available until January, you can apply for a Green Deal assessment to be carried out now. For more on the assessment process and how Green Deal loans are repaid, take a look at The Green Deal explained.

However, you could be eligible for free insulation now without the need to get a Green Deal loan.

Free insulation offers

If you don't have home insulation you might be able to take advantage of current schemes, particularly if you’re on a low income or benefits.

British Gas and EDF are among the companies still offering free loft and cavity wall insulation installation, irrespective of whether you’re a customer.

And if you’re on a low income or benefits, you could receive shopping vouchers or cash once the installation is complete.

To find out more about these offers, read How to get free cavity wall and loft insulation

If you want help with energy saving, you can call the new, impartial Energy Saving Advice Service on 0300 123 1234 if you live in England, Wales or Northern Ireland. Calls are charged at standard national rates.

If you live in Scotland, call your local Energy Saving Scotland advice centre free on 0800 512 012.

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