Grants for Green Energy

There are lots of ways to make your home greener, and not all of them will cost you money. But for the more ambitious projects, such as installing solar panels, it’s worth checking if you qualify for any grants.

People are turning to renewable energy sources for many different reasons. Energy Performance Certificates, which form part of the new Home Information Packs, are now compulsory when selling many homes. I just wanted to do my bit for reducing CO2 emissions.

Whatever your motivation, it’s worth checking to see if you are eligible for any financial grants from government, local councils and energy providers.

Getting started

Before you act, it’s handy to know where your efforts are best focused. The Energy Saving Trust (EST) provides an online tool that pinpoints your home’s weaknesses.

I soon learned that my flat ranks mid table - the site suggested I upgrade my heater, insulate the walls and fit double glazing.

These upgrades would cut fuel costs by £211 and CO2 emissions by 0.3 tonnes, an annual energy saving of 27 per cent. You can save and print off a PDF storing this data.

Armed with this information, I used a grant finder tool also on the EST site. It claimed I could save £90 on wall insulation from British Gas or up to £650 for wall and loft insulation from the Snug as a Bug scheme.

And extra support is available for those on benefits such as Income Support or Disability Living Allowance. The Government’s Warm Front initiative offers up to £2700 for insulation and heating improvements. Plus, over 60s who are not on benefits can claim £300 towards central heating.

Financial benefits

But do these grants and deals add up in the real world? Finding a truly beneficial solution means balancing initial costs with long-term savings, both financial and carbon.

“Think in terms of payback,” explains Dan Watt, from Ashmount Consulting Engineers Ltd. “Double glazed windows could cost £3000 and take 90 years to payback, but loft insulation could pay back in ten years for a cheaper outlay.”

How you interpret the figures depends on your perspective. Houses with energy saving measures installed may command higher value when it comes to sale.

Or future legislation may grow more forceful to drive carbon savings. This could involve tomorrow’s solar panels or wind turbines winning incentives like tax breaks, or improvements to local schools or hospitals.

For some people, the environment is a high enough priority in itself. They value helping the planet purely from an eco-conscious viewpoint, not for financial reasons.

The bigger picture

Sadly, grants in England could be kinder. In Scotland, you can get £8000 towards renewable technologies under Scottish Community and Householder Renewables Initiative and the Household Programme in Northern Ireland offers up to 50 per cent of installation costs on renewables.

Renewable technologies are better established in countries outside the UK too. In Germany and Japan if you generate excess energy, you receive a guaranteed price when feeding it back into the power grid.

To capitalise on your renewable system ask your supplier how much they will pay you for the excess power you generate. “You will find some are surprisingly generous in rewarding your so-called grid exports.” explains Will Wachtmeister from Powerhouse magazine.

Potential pitfalls

Understand the potential pitfalls too, such as planning permission, which isn’t always that straightforward. “It’s ridiculous you can freely put up a satellite dish, but installing the same size solar panel needs planning permission,” says Dave Sowden, chief executive for the Micropower Council.

Government grants

Once you understand what’s best for your home, the DTI’s low carbon buildings programme (LCBP) can help with most aspects of energy efficiency. So far, the programme has taken more than 6000 applications worth around £6 million. To qualify, you must insulate your loft and cavity walls, fit low energy lighting and install heating controls and thermostats.

When that’s done, you’re eligible for up to £2500 on solar panels, wind turbines, wood boilers and other technologies. Remember you might also need planning permission and you must use a certified installer.