Green Deal Home Improvement Fund – all you need to know

Find out how to claim up to £7,600 back through the Green Deal Home Improvement Fund by including energy-saving measures in your home design.

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UPDATE: This scheme has now been withdrawn by the government as of 24th July 2014. For further information click here.

Whether you are adding an extension to your home, converting your loft or adding new windows and doors, did you know you can now claim up to £7,600 back through the Green Deal Home Improvement Fund by including energy-saving measures in your design?

From 1st June, you’ll be able to reap the rewards of the government’s latest scheme, which will not only help the environment, but should help to lower your utility bills too. Discover how you could benefit, what home-improvement projects can benefit and how to get involved.

What does the new Green Deal Home Improvement Fund mean for homeowners?

The Green Deal Home Improvement Fund (GDHIF) is a new incentive scheme open to all householders in England and Wales who want to improve the energy efficiency of their home. The scheme can help you to offset the cost of installing energy-efficient measures, such as solid wall insulation and new eco-friendly heating systems, by receiving money back on the contributions made towards the improvements.

Under the new incentive scheme, which is available now, domestic energy customers can get:

  • 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.

What energy-efficient measures are included in the payback scheme?

You 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 external 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 system

For solid wall insulation 75 per cent of the costs of installation up to a maximum of £6,000 can be claimed back. However, when you install two of the allowed measures, you’ll be able to claim back 100 per cent of the costs of installation to a maximum of £1,000.

It is also worth remembering that you could get up to £500 more if you apply within the first 12 months of buying a home and you can claim back up to £100 towards the cost of your Green Deal assessment if you install energy-saving improvements through the Green Deal Home Improvement Fund. Payments through the scheme will be paid from 11th July. For full terms and conditions visit:

How can homeowners find out more?

To benefit from the new scheme, you must:

  • have a valid Green Deal Assessment Report or EPC which must have been carried out in the two years prior to application (find a registered Green Deal company here:
  • apply for measures as recommended on the Green Deal Assessment Report
  • register for a payback voucher through the GDHIF website
  • once you have received a voucher, you must have the improvements installed by a registered Green Deal installer within six months
  • once the work has been completed, submit your voucher and supporting documentation to prove you are eligible for the cashback and await payment.

How much money can homeowners save on average on their energy bills by introducing one of the mentioned energy-saving measures into their home?

According to the Energy Saving Trust, cavity wall insulation in a semi-detached home can save up to £145, while solid wall insulation can around £270 a year in a semi-detached home and £460 a year in a detached home. For further information on how the other measures work and how much money you could save on renewable heating sources click here.

What are the best ways to save energy in the home?

The Energy Saving Trust has found that a typical uninsulated three bedroom gas heated semi-detached home loses 33 per cent of its heat through the walls and 26 per cent through the roof, so any measures that prevent heat loss in these areas will have a significant impact on how much energy is saved in the home. Measures such as cavity wall insulation, roof insulation are easy-to-install methods which will have immediate impact on utility bills, while replacing an old boiler to an A-rated model could save around £305 each year.

Who can benefit from the Fund?

In order to qualify, the property you’re improving must be located in England and Wales. A separate scheme will apply for Scotland, you must have a valid Energy Performance Certificate that is less than two years old and be undertaking a home improvement covered by the GDHIF. You must also use a registered installer or provider.

How can I pay for the improvements?

You can choose to pay for the improvements yourself and claim money back after the work is completed or apply for a Green Deal Finance plan, which allows you to borrow money based on how much you expect to save on your energy bills. There’s no set interest rate, as it will be determined by the amount borrowed in your finance plan and the rate will be fixed for the full term of the plan so your repayments will be fixed. The loan will be paid back through a charge added to your electricity bill, and if you have a repayment meter, a small amount will be taken from the meter each day.

Useful contacts:

Energy Saving Advice Service 0300 123 1234