Could you get funded to go green?
Green Homes Grant
What is the Green Homes Grant?

Announced by Chancellor Rishi Sunak in July 2020, the Green Homes Grant is the latest government-funded scheme to make going green as easy as possible for everyone. Under the scheme, the government will pay two-thirds of the costs of energy efficient home improvements such as heat pumps and insulation, up to a value of £5000 or £10,000.

Which government-funded scheme saves you the most when installing a heat pump?
Use our funding calculator to find out.

Open until the end of March 2022, the Green Homes Grant is designed to help cut carbon emissions and kickstart the UK’s green economic recovery from coronavirus. Homeowners and landlords in England can apply for the grant and receive £5,000 vouchers towards their energy-saving measures, while those on lower incomes can get up to £10,000 worth of vouchers and pay nothing.

But if you’re thinking of installing a heat pump, it’s not your only option. The Green Homes Grant can actually work together with the existing government funding options: the Renewable Heat Incentive (RHI) and Assignment of Rights (AoR).

Use our funding calculator to find the most cost-effective option for you.

What does the Green Homes Grant cover?

If you’re looking to cut your heating bills, reduce carbon emissions and create a cosier home, then the Green Homes Grant can help you do it. Under the scheme you’ll be able to use your voucher to pay for at least two-thirds of the cost of ‘primary’ energy efficient measures such as:

• Air source heat pumps
• Ground source heat pumps
• Solar thermal panels
• Insulation – either solid wall, cavity wall or roof insulation

So for example, if you wanted to fit a heat pump worth £10,000 in your home, the government would give you a voucher of £5000 and you’d pay the remaining £5000. You can also use your allocated funding for ‘secondary’ measures such as smart thermostats. Homely by Evergreen Energy is a smart thermostat which works with your heat pump to make your home even cosier, greener and cheaper to heat.

If you’re not sure which options would suit your home best and would rather speak to us call 0161 768 1143 and a member of our specialist team will be happy to help you.

How does the Green Homes Grant work with other government funding?

If you’re thinking of switching to a heat pump, the existing green government funding schemes could save you more in the long run. But why not do both? The Green Homes Grant is a great way to spend less upfront on your installation. Here are the options:

    • Renewable Heat Incentive: Introduced in 2014, this basically pays you back for all or some of the cost of a renewable heating system over the course of 7 years.


    • Renewable Heat Incentive + Green Homes Grant: The Renewable Heat Incentive is great, but what if you can’t afford renewable heating in the first place? Simply use your Green Homes Grant voucher towards the cost, and then this will be deducted from your Renewable Heat Incentive payments over the next 7 years. So, the Green Homes Grant doesn’t save you any more money, but it means you pay less upfront.


    • Assignment of Rights: This clever scheme allows Evergreen Energy, as an Ofgem-approved investor, to pay some or all of the upfront cost of a heat pump so you don’t have to. Then we’ll get refunded through the government’s Renewable Heat Incentive payments over seven years.


    • Assignment of Rights + Green Homes Grant: Combining the Assignment of Rights with the Green Homes Grant would mean that you’d get two upfront funding options – the Assignment of Rights from Evergreen Energy and your Green Homes Grant voucher. So your bank balance will be as happy as your home!


Find out which funding option is right for you with our free funding calculator.

How much could you save?

Example 1 – £500 in profit

Mary wants an air source heat pump, which costs £7.5k for her 3-bedroom home. She’s got the cash available, and she gets the Green Homes Grant of 5k, so she only has to pay £2.5k. She’s also eligible for Renewable Heat Incentive (RHI) payments totaling to £8k, which pay you back for what you spent over the next 7 years. After the government deducts the £5k Green Home Grant from the RHI payments she gets £3k over the 7 years. As she only paid £2.5k at the start she ends up £500 in profit.

Example 2 – paying only £750 for a heat pump

Simon and Ashley would love a £7.5k air source heat pump but they don’t have the money right now. So, they get the Green Homes Grant of £5k and £1750 from Evergreen Energy in Assignment of Rights funding. This means they just pay £750 for their installation and Evergreen Energy is paid back through their RHI payments over the next 7 years.

To find out how much you could save, try our funding calculator today


How do I apply?
Who can apply for a Green Homes Grant?
Can I get funding for a secondary measure but not a primary measure?
What if I live in Scotland or Wales? Do I get funding?
How do I know which measures are best for my home?
How do I qualify for the full £10,000 grant?
Will renewable energy cost me any more in heating bills?
How disruptive is it to my home to switch to renewable energy?
What happens if I’m not able to get the work done by March 2022?
Why are there so many different funding schemes?

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