The Green Homes Grant closed in 2021 after distributing £314 million of its £1.5 billion budget
The Green Homes Grant was a government scheme launched in July 2020. It aimed to improve the energy efficiency of up to 600,000 homes in England. The scheme closed its voucher phase in March 2021.
The Green Homes Grant spent only £314 million of its £1.5 billion budget, reaching just 31,500 homes against a 600,000 target. Key lessons include the need for simpler applications and better installer capacity planning.
- Only £314m of £1.5bn budget was spent by closure in 2021.
- Just 31,500 homes received installations against a 600,000 target.
- Complex application process deterred many homeowners from applying.
- Limited installer capacity caused delays and cancellations.
- Scheme excluded private landlords, restricting reach significantly.
- The Green Homes Grant closed in 2021 after distributing £314 million of its £1.5 billion budget
- Eligibility for the original Green Homes Grant was restricted to owner-occupiers and some social housing
- Quick numbers key figures from the Green Homes Grant rollout
- The direct answer to "green homes grant lessons" is that poor scheme design and limited installer supply caused under-delivery
- How to verify an installer for current government energy grants (MCS certification required)
- Lessons from the Green Homes Grant led to simpler, longer-running replacement schemes
- Confirming your eligibility for current grants depends on property type, income, and location
The National Audit Office (NAO) published a report on the scheme in July 2021. It found that only 31,500 homes received installations, far below the 600,000 target. The scheme had a total budget of £1.5 billion, but only £314 million was spent by the time it closed (National Audit Office, 2021).
The low uptake was attributed to several factors. The application process was complex, and many homeowners found it difficult to navigate. There was limited capacity among certified installers, and the deadlines were too short for the work to be completed. The NAO found that the scheme’s design did not account for the time needed to train and certify installers, which led to delays and cancellations (National Audit Office, 2021).
Eligibility for the original Green Homes Grant was restricted to owner-occupiers and some social housing
The Green Homes Grant voucher scheme was available only to owner-occupiers and social housing providers in England. Private landlords were excluded from the scheme. The eligibility criteria were set out in the GOV.UK scheme guidance published in 2020 (GOV.UK, 2020).
Homeowners had to live in the property to qualify. They were limited to receiving two-thirds of the cost of eligible improvements, up to a maximum of £5,000 per household. Low-income households could receive up to 100% funding, capped at £10,000. However, this higher funding was only available if the household received specific means-tested benefits, such as Universal Credit or Pension Credit.
Quick numbers key figures from the Green Homes Grant rollout
| Metric | Value |
|---|---|
| Total budget allocated | £1.5 billion |
| Total spent by closure | £314 million |
| Number of homes completed | 31,500 |
| Maximum voucher value (standard) | £5,000 |
| Maximum voucher value (low-income) | £10,000 |
| Percentage of budget spent | 21% |
All figures in this table come from the National Audit Office report, “Green Homes Grant: Lessons learned”, published July 2021 (National Audit Office, 2021).
The direct answer to “green homes grant lessons” is that poor scheme design and limited installer supply caused under-delivery
The primary lesson from the Green Homes Grant is that a short-term, high-demand voucher scheme cannot succeed without sufficient installer capacity and streamlined processes. The NAO found that the scheme’s design did not match the time needed to train and certify installers (National Audit Office, 2021).
The £5,000 cap was too low to cover the full cost of many improvements. For example, cavity-wall insulation or a heat pump installation could cost significantly more than £5,000. This discouraged many homeowners from participating. Future schemes, such as the Boiler Upgrade Scheme, adopted longer timelines and fixed grants to avoid these pitfalls. Comparing the Boiler Upgrade Scheme with the Green Homes Grant
How to verify an installer for current government energy grants (MCS certification required)
For current grants like the Boiler Upgrade Scheme, installers must be certified under the Microgeneration Certification Scheme (MCS). The MCS website confirms this certification requirement (MCS, 2026). Ofgem also provides guidance on the Boiler Upgrade Scheme, which states that only MCS-certified installers can carry out eligible work (Ofgem, 2026).
You should check the MCS Installer Database at mcsinstallers.com to confirm an installer’s certification before hiring. For schemes like the Great British Insulation Scheme, TrustMark registration is also required (GOV.UK, 2026). Using an uncertified installer may invalidate the grant and void warranties on the work.
Lessons from the Green Homes Grant led to simpler, longer-running replacement schemes
The Boiler Upgrade Scheme, launched in May 2022, offers a flat £7,500 grant for heat pumps. It has no income caps and runs until 2028. The Department for Energy Security and Net Zero confirmed the grant increase from £5,000 to £7,500 in October 2023 (DESNZ, 2023).
The Great British Insulation Scheme, launched in 2023, provides free or subsidised insulation to low-income households. It has a longer application window than the Green Homes Grant. The Energy Company Obligation (ECO4) scheme, ongoing since 2022, targets fuel-poor homes with full funding for insulation and heating upgrades. These schemes avoid the Green Homes Grant’s short deadlines and complex voucher systems. How to apply for the Great British Insulation Scheme
Confirming your eligibility for current grants depends on property type, income, and location
The Boiler Upgrade Scheme is open to all owner-occupiers in England and Wales, regardless of income. However, it only covers heat pumps and biomass boilers. Ofgem’s guidance on the Boiler Upgrade Scheme provides the full eligibility criteria (Ofgem, 2026).
The Great British Insulation Scheme requires the property to have an Energy Performance Certificate (EPC) rating of D or below. The household must be on a low income or live in a specific postcode area. ECO4 eligibility is based on receipt of means-tested benefits or a referral from the local authority (Ofgem, 2026). You can use the Energy Saving Trust’s grant checker tool at est.org.uk to see which schemes apply to your home (Energy Saving Trust, 2026).
Frequently Asked Questions
Only 31,500 homes received installations through the Green Homes Grant, according to the National Audit Office's July 2021 report.
Of the £1.5 billion total budget, only £314 million was spent by the time the scheme closed in March 2021, as reported by the National Audit Office.
Eligibility was restricted to owner-occupiers and social housing providers in England, as set out in GOV.UK's 2020 scheme guidance. Private landlords were excluded.
The NAO report attributed failure to a complex application process, limited installer capacity, and unrealistic deadlines that didn't account for training time.
The Green Homes Grant was replaced by other energy efficiency schemes such as the ECO4 scheme and the Boiler Upgrade Scheme, which launched in 2022.
