Funding Options & Grants for External Wall Insulation

15-06-2017 Back

Funding options for EWI

Funding Options for EWI:

-    Government grants under the Energy Company Obligations Scheme
-    Affordable Finance
-    Find out what happened to the Green Deal?

-    Find out how much EWI costs


 

A quick guide to external wall insulation grants


-    Government grants are offered through The Energy Company Obligations Scheme (ECO)

-    There are three types of grants:

1. CERO - available to anyone who has a house suitable for EWI

2. HHRCO - available if you are on certain benefits (see the full list here)

3. Flexible Eligibility (HHRCO Flex) - available if you live in social housing that is not very energy efficient, or if you meet certain criteria set by your local council.

-    You get a grant by contacting a PAS2030 accredited EWI installer that has an ECO funding contract in place. They will come round, do an assessment of your home and let you know how much funding you could receive.

-    There’s no set funding amount available – it’s worked out using a special formula based on your property type (find out more).


 
 


How much financial help is available for external wall insulation?

There are grants available for external wall insulation (EWI), but it is unlikely that they will cover the full cost of the installation.

There are circumstances where EWI grants are topped up with other forms of funding. For example some local authorities run EWI schemes which blend different pots of funding together. You can find out if your local authority is running a scheme by visiting their website or contacting them directly.

In most cases the homeowner will need to top up the grant using their own money or a loan to cover their contribution.

If you receive certain state benefits you could be eligible for a larger grant that will cover more of the cost.




Government Grants for External Wall Insulation - the Energy Company Obligations Scheme (ECO)


What is ECO and how does it work?

The ECO scheme is an energy efficiency programme implemented by Government that aims to reduce carbon emissions and tackle fuel poverty. It sets energy reduction targets for major energy suppliers. Energy suppliers must meet these targets by funding energy saving installations on domestic properties. Installing EWI is one of the key measures funded through ECO.

Rather than do it in-house, some energy supplier will work with organisations like YES Energy Solutions to help them achieve their ECO targets. They do this by giving out ECO delivery contracts.

YES Energy Solutions has contracts in place with a number of energy suppliers and has ECO funding for external wall insulation.


Types of ECO grants available:

There are currently three types of ECO grant available. These are:

•    The Carbon Emissions Reduction Obligation (CERO) – available to everyone providing the property is suitable for EWI.
•    The Home Heating Cost Reduction Obligation (HHCRO) – available to those on certain state benefits. Funding tends to be higher than CERO.
•    Flexible Eligibility (HHCRO Flex) - available to people not on benefits, but in social housing with poor energy efficiency, or who meet criteria set by their local authority. Tends to be more than CERO.



The Carbon Emissions Reduction Obligation (CERO):

All homes that are technically suitable for external wall insulation qualify for CERO funding. The level of funding available depends on two things:

1.    The carbon score for your property type. This is estimated for every type of home and shows how much carbon you are likely to save by installing insulation.

2.    The funding rate offered by the energy supplier.



How funding is worked out:
 
  Carbon Saving Score

Set by Ofgem (the industry regulator) and based on:

-    What type of home you have (terrace, semi, detached etc)
-    Number of bedrooms
-    Heating system currently used
-    Type of walls (solid / system built)
-    Thickness of EWI being applied


 
x Funding Rate

Set by energy suppliers. This varies from supplier to supplier.

 
= Funding Allocation  

YES Energy Solutions work with many energy suppliers and currently have CERO funding in place for EWI at a very competitive rate. We can confirm what the funding allocation will be for your property.


The Home Heating Cost Reduction Obligation (HHCRO):

If you claim certain state benefits you may qualify for HHCRO funding towards the cost of external wall insulation.

HHCRO is designed to support the most vulnerable residents and is typically funded at a higher rate than CERO.

HHCRO is measured in the estimated cost savings you could see on your energy bills as a result of installing external wall insulation. Similar to CERO, funding allocations are worked out using a deemed scoring system to confirm the likely costs savings for your property type. This is then multiplied by the funding rate that the energy supplier is offering (see the diagram above).

You will qualify for a HHCRO grant is you receive any of these state benefits:

One or more of the following:

•    Pension Guarantee Credit
•    Income Based Job Seekers Allowance
•    Income Support
•    Income Related Employment & Support Allowance


Or

Working Tax Credit or Child Tax Credit with a yearly household income below:

1 adult, no children - £13,000
1 adult and 1 child - £17,400
1 adult and 2 children - £21,600
1 adult and 3 children - £25,800
1 adult and 4 or more children - £30,000
2 adults, no children - £19,800
2 adults and 1 child - £24,000
2 adults and 2 children - £28,200
2 adults and 3 children - £32,400
2 adults and 4 or more children - £36,600

•    You must have parental responsibility for any children living in the property
•    Children must be under 16 years of age, or between 16 and 20 years of age if in full-time education (excluding higher education), and ordinarily reside at the property


Or

Universal Credit with a monthly household income below:

1 adult, no children - £1,100
1 adult and 1 child - £1,450
1 adult and 2 children - £1,800
1 adult and 3 children - £2,150
1 adult and 4 or more children - £2,500
2 adults, no children - £1,650
2 adults and 1 child - £2,000
2 adults and 2 children - £2,350
2 adults and 3 children - £2,700
2 adults and 4 or more children - £3,050

•    You must have parental responsibility for any children living in the property
•    Children must be under 16 years of age, or between 16 and 20 years of age if in full-time education (excluding higher education), and ordinarily reside at the property.



Flexible Eligibility (HHCRO Flex):

Some homes can be funding through HHCRO even if the householders do not receive qualifying benefits. This is referred to as ‘flexible eligibility.’

People living in social housing can now qualify for HHCRO funding for EWI if the properties have an existing Energy Performance Certificate (EPC) of band E, F or G.

Social housing with higher EPC bands are not eligible, but will still qualify for CERO funding (but typically at a lower rate).

Local authorities have also been given the power to determine HHCRO eligibility without the need for benefit claimants.

To do this they must publish a statement of intent on their websites which define the criteria they will use to qualify eligible householders. The criteria they will implement will be unique to their own areas, but must support householders that they feel are living in fuel poverty or vulnerable to the effects of living in a cold home.

It is up to the energy suppliers as to whether or not they will fund flexible eligibility referrals from local authorities. However, if the council in your area has published a statement of intent, then it is likely that they have agreed a process with an energy supplier or managing agent (like YES Energy Solutions).

YES Energy Solutions work with many local authorities and energy suppliers. We are currently exploring the flexible eligibility funding route with a number of partners.




What percentage of the cost of EWI is covered by ECO?

This varies from household to household and what funding rate your installer has secured.

Your property type will be set a deemed score. Your installer will then multiply their funding rate against the score to confirm the total amount of funding available.

Here are a few examples of ECO funding allocations based on typical funding rates in the market at the moment:

Typical ECO funding allocations for EWI using CERO


Property
Type

Average
Install Cost

 

Deemed
Score

 
Funding
Rate
Funding
Allocation
Percentage
Towards Cost

System built 2 bedroom
mid terrace with
gas central heating

 
£4 – 6,000 20.796 £25 £519.90 8 - 12%

System built 3 bedroom
semi-detached house
with gas central heating

 
£8 – 10,000 44.434 £25 £1,110.85 11 - 13%

Please note that you are likely to get more funding if you qualify for the HHCRO strand of the ECO scheme. Energy Companies tend to provide more favourable funding rates to installers for HHCRO installations over CERO installations.

What’s more, if your property is off the mains gas network, the deemed score allocated to your property type will be higher – therefore you will receive a higher funding allocation.




How does the assessment work and do I need to do anything?

All you need to do is ensure you contact an installer that is PAS2030 accredited for external wall insulation. They must be accredited in order to draw down ECO funding. You can find out whether an installer is PAS2030 accredited by checking the participants register on the Green Deal Orb website.

Once you’ve contacted an installer and expressed interest, an assessor will visit your home to measure the property, confirm the cost of the work and what level of funding can be claimed.

Householders that qualify for a HHCRO grant will need to provide details of their benefit entitlements. If these documents are not available, then there are options to sign a data match form where the details are sent to the company electronically (however not all installers have this facility).

YES Energy Solutions is PAS2030 accredited for EWI. We also work with and fund a national network of PAS2030 accredited installers.



Can I apply for a grant if I am renting in private accommodation or does my landlord need to?

You can apply for both CERO and HHCRO grants if you are renting a property from a private landlord. However, for the funding to be applied the installer would need to get signed permission from the landlord before any work took place. So you can make an enquiry and present the findings to your landlord, but they would need to sign it off.

What’s more, it is unlikely that a grant will cover the full cost of the work so your landlord would need to pay the difference.



How do I apply for an ECO grant?

To access an ECO grant you need to contact an organisation like YES Energy Solutions. We are industry approved energy saving specialists with a wealth of experience in ECO funding and EWI installations.

Contact Us

Call us on: 01422 880100
Office hours: 9am – 5pm, Mon – Fri

Please note that grants aren’t awarded in the sense of giving you money, rather the amount is taken off your bill for the EWI installation.



What’s happened to the Green Deal?

The Green Deal Scheme offers 'pay as you save' loans for energy saving home improvements. Government backing for the Green Deal ended in July 2015 when it withdrew financial support for The Green Deal Finance Company. The company and its loan book has now been sold to a private enterprise who is now reintroducing Green Deal loans into the market.

Find out more about the Green Deal here.



Affordable finance – loans

In most cases ECO grants will not cover the full cost of EWI unless other blended funding is provided. To make up the shortfall, you could access a loan or use a credit card as you would for any other investment or purchase.

Most loans have strict terms and conditions and may only be provided if you have a good credit rating. Some organisations, such as credit unions or local authorities, have loans available for families on lower incomes or for more vulnerable residents.





More advice from YES Energy Solutions:

FAQs for External Wall Insulation
A Simple Guide to External Wall Insulation
External Wall Insulation Vs Internal Wall Insulation
More about ECO Funding