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Green Deal Home Improvement Fund:
A fillip for flagging Green Deal?

NOTE: THIS SCHEME CLOSED TO NEW APPLICANTS ON 24 JULY 2014

A new Green Deal Home Improvement Fund (GDHIF) launches in June 2014, in an attempt by the government to inject some life into its lacklustre Green Deal scheme. The new Fund offers householders much more generous cashback grants for a range of energy efficiency measures, up to a potential limit of £7600 per property, as long as the measures have been recommended in a recent Energy Performance Certificate (EPC) or Green Deal Assessment.

Ed DaveyEnergy Minister Ed Davey described the new scheme as 'much more generous' and 'much simpler', after conceding earlier that response to the Green Deal had been 'disappointing'.

Funding package potentially worth £7600 per property

Up to 75% of the cost of solid wall insulation can now be clawed back from the new Fund, up to a limit of £6000, and potentially 100% of the cost of certain additional measures, such as a new gas boiler or double glazing, up to a maximum of £1000. A further £500 incentive is on offer for people who have bought the property within 12 months of applying for the fund - called 'homemovers' - and, oh yes, there is a £100 refund available for having a Green Deal Assessment. Which all adds up to £7600! But loft insulation is not included in the list of eligible measures (see below).

The GDHIF fund will replace the Green Deal Cashback Scheme, which ends on 30 June 2014, and you won't be able to claim from both schemes to finance installation of the same measure! Nor can householders combine ECO funding or Green Deal Communities funding with GDHIF. But they will be able to apply for a Green Deal loan to finance a package of measures alongside GDHIF funding.

How do you get the money?

  1. Make sure you have a valid EPC or Green Deal Assessment Report less than 2 years old.

  2. Select two measures recommended in the EPC or Report that are covered by the GDHIF (see below).

  3. Register for a GDHIF voucher, either by telephone or the GDHIF website (from June 2014).

  4. Have the measures installed within 6 months of receiving the voucher. Note that the work must be done by a registered Green Deal installer or provider.

  5. When the work is completed, the GD installer or provider will countersign the voucher, which is then sent off along with copies of the invoice, etc.

  6. Receive payment within 10 working days if all documents are in order.

Eligible measures

  • Solid wall insulation - up to 75% of cost or £6000 (whichever is the lower).

PLUS: Perm two from any of the following - 100% of the cost or £1000 (whichever is the lower - but this increases to £1500 if you are a 'homemover'):condensing boiler

  • Condensing gas boiler
  • 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 unit
  • Waste water heat recovery unit

PLUS: Up to £100 refund from the cost of the Green Deal Assessment.

£120 million is available in the first financial year, and initial rates are guaranteed for the first £50 million worth of applications. Landlords and tenants can also apply for the scheme, although landlords' applications will be checked subject to de minimus state aid regulations.