Should you make energy home improvements now?
As a person buying a house this year, I’ve been able to make huge savings off the back of the chancellor’s announcement back in July on the changes regarding Stamp Duty as will others who have been looking or are in the process of buying a house. This is not the only cost saving announced and there’s more to be saved under other government initiatives to help stimulate the economy, but also help people save money on their energy bills.
Green Homes Grant Program
Under the new Green Homes Grant program, which begins in September, homeowners in England will receive a voucher to the total amount of £5,000 for energy-efficient improvements.
It’s important to note that the government grant will only cover two-thirds the cost of your total bill, so you’ll still be paying out. For example, if your energy home improvements cost in at £5,000, you’ll only pay a third of the cost (£1,666) whilst the government will pay the rest (£3,334).
However, the poorest households would be eligible to receive even more, up to £10,000 towards energy-efficiency improvements under the ‘Green Home Grants Low-Income Scheme’.
What energy home improvements can you make?
- Double Glazing
- Heat Pumps
Government’s official announcement –
On 8 July 2020, the Chancellor announced a £2 billion Green Homes Grant scheme to upgrade homes across England. Under this, £500 million funding will be delivered through local authorities, to improve the energy efficiency of low-income households. This will help reduce fuel poverty and support the installation of low carbon heating.
The Local Authority Delivery (LAD) scheme aims to raise the energy efficiency of low energy performance homes (those rated at EPC Band E, F or G), including off-gas grid homes.
The initial phase of the scheme provides £200 million funding for local authorities to upscale existing energy efficiency improvement projects.
A further £300 million will be available in the second phase of the scheme later in 2020 for Local Energy Hubs in England to procure services that support upgrading eligible homes. We will provide more guidance on phase 2 ahead of its launch.Source: gov.uk
It’s worth taking a look and as a first-time buyer of a home, I’m certainly looking to see where I can make these improvements as this is an opportunity that you should not take lightly.
While there will be an initial cost regardless of the government grant, any home improvement will increase the value of your house & also save you money on your energy costs – the government estimates it’ll be able to save consumers about £200 per year with this initiative. You can also save on energy costs by switching energy companies, with 10% of consumers being able to save up to £461.