Support for homeowners with ‘Green Grants’ (CLG)

A new system has been introduced to help homeowners lower the prices of their fuel bills and make their homes greener by getting a ‘green grant’ worth hundreds of pounds. This has been linked to the introduction of Home Information Packs and Energy Performance certificates.
It may surprise people to discover that typical grants can cost between £100 and £300, for cut-price loft and cavity wall insulation. As the programme is rapidly expanding, more and more homeowners will benefit from hundreds of pounds off insulation.

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The ‘Energy Saving Trust’ believe that the average consumer could save up to £300 a year off their fuel bills.

With the recent introduction of EPCs (Energy Performance Certificates)- giving home-buyers a home energy rating, the system will make it easier for consumers to receive grants to make the improvements recommended in the certificates.

The six major energy companies have now agreed that when buyers first move into a new home and sign up to an energy contract, they will get immediate access and information about offers to the consumer or ‘green grants’. This is a result of government talks and it will make their homes more environmentally friendly and also cut fuel bills.

The scheme is also including a portal on the website, where consumers can enter their postcode and find details of offers available. By 2020, it is estimated that the Energy Performance Certificates will save around a million tonnes of carbon.

The offers are funded by energy suppliers and other partners, with the total investment increasing to £2.5 billion over the next three years.

EPCs are being introduced as part of the home information pack. These are for homes with four or more bedrooms.

A number of leading estate agents will offer a home information pack for around £300 to £350 plus VAT - £200 to £250 of which is already paid for in the current system. Other estate agents will be offering these free of charge or as part of their ordinary fees.

The introduction of Home Introduction Packs has already lead to prices coming down for consumers, with nearly fifty authorities reducing the charges for searches.

The HIPs are expected to increase competition and transparency, therefore reducing the cost further.

The HIPs will be closely monitored by the government to ensure that the benefits are being passed on to the consumer. A new consumer panel will also be set up as part of a wider programme to make the buying and selling process work for the consumers.

Philip Sellwood, Chief Executive of the Energy Saving Trust, said:

"Our Green Barometer shows that more than half of people want tailored advice on energy saving. Energy Performance Certificates will make it easier for people to identify the simple things they can do in their home to reduce their energy consumption. More people will be reached now that energy companies are being proactive in providing information to householders on grants available to them."

  • The government already require gas and electrical companies to help reduce the amount of energy used in their home.
  • Over 10 million households received energy efficiency measures under the first phase of the Energy Efficiency Commitment (2002-05), which led to a large increase in the number of people installing loft and cavity wall insulation, low energy light bulbs and also other energy efficient products.
  • 800,000 households have received cavity wall insulation. From 2008-2011, it is expected to cut carbon emissions by 1.1 million tonnes, and also save consumers £10 billion in energy savings.
  • The Energy Efficiency Commitment have a responsibility to promote households measures to achieve a target level of savings.
  • EEC has already been very successful at pushing the cost-effective delivery of measures such as loft and cavity wall insulation, low energy lamps and efficient appliances.