Green Deal closes its doors

Boiler Replacement
Homeowners will now have to find alternative funding for home improvements
"Until we know how many homeowners take up the improvements, there will remain a lack of information surrounding the deal," Jeremy Cryer, Gocompare.com
  • | by Emily Bater

If you were hoping to get money off a new boiler or solid wall installation through the Green Deal, you've missed the boat.

In a surprise move, the government has shut down the initiative after huge demand meant funds were drained in just six weeks.

The Green Deal Home Improvement Fund (GDHIF) was launched in June and proved popular with consumers, who could claim £7,600 in home efficiency measures.

But last week the government announced it would be cutting the maximum payout after £50m of its budget had already been allocated, prompting a surge in applications.

Homeowners grabbed the final £70m of the £120m budget in just three days, forcing the government to shut the funding down.

In a statement, the Department for Energy and Climate Change (DECC) said it would monitor the redemption rates of the allocated vouchers and would consider launching a further offer if funds became available.

Parliamentary undersecretary of state for energy and climate change, Amber Rudd, said: "The Green Deal Home Improvement Fund is a world first and in a short space of time it has proved extremely popular.

"We were always clear there was a budget which is why we encouraged people to act quickly.

"As a result, thousands more families will now benefit from government help to have warmer homes which use less energy."

What is the GDHIF?

The GDHIF was an attempt to spice up the Green Deal. The GDHIF improved upon the existing Green Deal by offering homeowners in England and Wales up to £7,600 to make energy-efficient improvements to their homes.

Under the scheme, households could receive:

  • Up to £1,000 for installing two measures from an approved list of improvements
  • Up to £6,000 for installing solid wall insulation
  • Up to £100 refunded from the money paid for their Green Deal assessment
  • An extra £500 for those who'd bought thier home in the 12 months prior to application

Gocompare.com's Jeremy Cryer said: "It's encouraging to see that homeowners are keen to make their homes more energy efficient, but until we know how many homeowners take up the improvements, there will remain a lack of information surrounding the deal.

"If it is a large number, as has been suggested, perhaps how Green Deal loans impact on conveyancing will become clearer.

"The impact that these changes have on bills is a step in the right direction, but consumers shouldn't forget to compare their energy tariff with other providers to make sure they're getting the right deal and making the most of these improvements."