State of dismay as Green Deal cash incentive closes£120 million has been claimed in just seven weeks

25 July 2014

Closed sign on door

The Green Deal Home Improvement Fund was closed due to a surge of applications

In an unpredictable turn of events, the government has announced that - due to a surge of applications - the full £120 million allocated for the Green Deal Home Improvement Fund has been spent and the scheme is now closed.

This surprising news comes only two days after the government announced that the first £50 million of the Green Deal Home Improvement Fund had been claimed, with successful applicants receiving cash back for installing energy-saving measures in their homes. 

Then, the government said the amount that could be claimed was being reduced from up to £7,600 to £5,600, and flue gas heat recovery systems was removed from the list of eligible technologies, to ensure the remaining funds lasted longer.

Now, the government is claiming that pending applications and payments about to be made mean that the £120 million mark has been reached.

You may still be entitled to money to help you make your home more energy efficient - we've put together a guide to help you find out about other energy grants.

Potential Green Deal Home Improvement Fund applicants left in lurch

Despite being told that applications would be accepted up until 23:59 on Thursday 24 July, many potential applicants were disappointed to find that the website was unavailable several hours before this.

Anyone who was planning on applying for the Green Deal Home Improvement Fund will now be unable to claim back any money for measures they choose to install - this includes those who have already paid for a Green Deal assessment.

If you have had a Green Deal assessment and cannot afford to install the energy-saving measures without the incentive scheme, you will still be out of pocket as you cannot claim back the £100-£150 to help pay for the assessment.

Green Deal assessors feeling the pressure

Consumers are being urged to contact their Green Deal Assessor if they were in the process of applying for the Green Deal Home Improvement Fund, although it is unclear what the assessors will be able to do in this situation.

Traders that registered to become Green Deal Assessors, Providers and Installers will also be disappointed at this latest news, as the incentive for consumers to use their services when installing energy-efficient measures has been greatly reduced.

The Green Deal Home Improvement Fund was introduced to encourage consumers to make their homes more energy efficient. The idea was that it would compensate for cuts made to the Energy Companies Obligation - which obligated energy companies to install energy-saving measures for vulnerable customers - and would help the government reach its target of reducing CO2 emissions by 80% by 2050. 

The government has announced that it may consider launching another incentive scheme should funds become available, but has not implied when this may be.

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