All you need to know about Green Homes Grant Scheme

The Green Homes Grant was a UK government initiative designed to help homeowners and landlords make their homes more energy saving and reduce their carbon footprint. The grant offered financial assistance to cover the cost of energy efficient improvements, contributing up to two-thirds of the total cost. While the scheme is now closed to new applicants, this article gives you an idea of its goals, improvements covered, benefits, and disadvantages that led to it being replaced with the Energy Company Obligation Scheme and the Great British Insulation Scheme as well as other Government Energy Support initiatives including see Energy Crisis Support Scheme.

Could you secure the Green Homes Grant without any cost?

Not quite, as applications are now closed, however, you could apply for ECO4 grant instead. It’s quite probable that you meet the requirements for this scheme if you’re a property owner or tenant with low EPC score of your property, and are in receipt of the appropriate mix of benefits tied to income levels or tax credits.

  • Receive Income-Related Benefits or Tax credits
  • For Homeowners or Private Tenants
green homes grant houses

Objectives of the Green Homes Grant

The Green Homes Grant aimed to achieve several objectives:

  1. Reduce greenhouse gas emissions in line with the UK’s commitment to achieving net-zero carbon emission by 2050.
  2. Lower energy bills for homeowners and tenants.
  3. Stimulate the economy by creating thousands of green jobs.
  4. Improve the health and wellbeing of residents living in homes that don’t loose energy.

Eligibility for the Green Homes Grant (Closed to New Applicants)

Who could apply for the grant?

The Green Homes Grant was available to homeowners, including owner-occupiers and social/private landlords, in England. However, new build properties that had not been previously occupied were not eligible.

Types of properties that qualified

The grant covered various property types, including houses, flats, maisonettes, and park homes. However, it was essential to check the specific eligibility criteria for each property before applying.

Categories of Improvements Covered by GHG in the past

There are two main categories of improvements covered by the Green Homes Grant while it was running: primary measures and secondary measures.

Primary Measures


Insulation is a crucial aspect of efficient energy. The grant covered the following types of insulation:

  • Solid wall insulation
  • Cavity wall insulation
  • Underfloor insulation
  • Loft insulation
  • Flat roof insulation
  • Room-in-roof insulation

Low carbon heating systems

Low carbon heating systems can significantly reduce greenhouse gas emissions. The grant supported the installation of:

  • Air source heat pumps
  • Ground source heat pumps
  • Solar thermal systems
  • Biomass boilers

Secondary Measures

Windows and doors

The grant covered the installation of saving energy windows and doors, such as:

  • Double glazing or triple glazing
  • Secondary glazing or replacing single glazing
  • Energy efficient doors (only when replacing single-glazed or solid doors)

Heating controls and insulation

Heating controls and insulation could help to manage energy usage more efficiently. The grant covered:

  • Hot water tank thermostats
  • Hot water tank insulation
  • Appliance thermostats
  • Smart heating control
  • Radiator controls

Benefits of the Green Homes Grant

The least effective large room heater will be those that aren’t efficient when it comes to energy usage and cost more to run than is beneficial. You will need to consider what you need and how much you’re willing to pay for particular models or requirements.

Environmental benefits

By implementing energy efficiency measures, households could significantly reduce their emission of carbon, contributing to the UK’s goal of achieving net-zero carbon emissions by 2050.

Financial benefits

Upgraded homes require less energy to heat and cool, resulting in lower energy bills for homeowners and tenants. Additionally, the grant covered up to two-thirds of the cost of eligible improvements, providing significant financial support for participants.

Health benefits

Improved insulation and efficient energy usage can lead to a healthier indoor environment by reducing dampness, mould, and cold spots. This can have a positive impact on the health and wellbeing of residents, particularly those with respiratory issues or vulnerable to cold-related illnesses.

green homes grant energy savings

Challenges and Criticisms of the Green Homes Grant

Despite the numerous benefits of the Green Homes Grant, there have been challenges and criticisms surrounding the scheme:


Limited availability of TrustMark-registered installers in some regions.

Delays in voucher issuance and payment processing.
Insufficient funding to meet demand.
Short duration of the scheme, limiting the number of households that can benefit.
green homes grant hm government announcement

Although the Green Homes Grant failed, you can apply for ECO4 that offers some of the home improvements included in GHG, subject to availability.

Why did the Green Homes Grant fail

Despite its ambitious objectives and initial positive response, the scheme faced various challenges, ultimately leading to its closure in March 2021.

One of the primary reasons for the Green Homes Grant’s failure was the complexity of its administration. The scheme was administered by a US-based firm, ICF, which faced criticism for its slow processing of applications and voucher issuance.

Many homeowners experienced long delays in receiving vouchers, causing frustration and a lack of confidence in the scheme. This inefficiency resulted in a significant backlog of applications and a reduced uptake of the available funding.

The Green Homes Grant failed due to several factors, including administrative complexities, a shortage of accredited installers, poor communication and guidance, restrictive eligibility criteria, uneven funding distribution, and a lack of long-term planning which did not help in reducing energy bills. The COVID-19 pandemic’s economic challenges further exacerbated these issues, leading to the scheme’s closure just six months after its launch.

The Green Homes Grant was a valuable initiative aimed at promoting energy saving, reducing carbon emissions, energy bills and supporting the UK’s green economy. By understanding the eligibility criteria, the types of improvements covered, and the application process, homeowners and private landlords could maximise the benefits of the scheme and contribute to a greener future.

If you’re still interested in improving your energy efficiency measures, find out if you’re eligible for the ECO4 grant.

This is a government backed grant

Don't wait! Apply Today

The ECO4 grant has launched in April 2022. The applications are now open so hurry if you don’t want to miss out on free home upgrades before the scheme is gone like Green Homes Grant.