Green Homes Grant: What Happened and What Replaced It
Still searching for the Green Homes Grant? It closed in March 2021. But the good news is that what replaced it — the Boiler Upgrade Scheme — is simpler, more generous, and still available. You can get £7,500 towards a heat pump today, with your installer handling the entire application.
The BUS grant gives you £7,500 towards a heat pump right now
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What Was the Green Homes Grant?
Launched in September 2020, the Green Homes Grant Voucher Scheme offered homeowners up to £5,000 (or £10,000 for low-income households) towards energy efficiency improvements including insulation and low-carbon heating. It was supposed to run until March 2022.
Why It Failed
The scheme closed just six months after launch due to poor administration by the US-based contractor ICF, incredibly slow voucher processing, confusion over eligible measures, and low installer participation. The National Audit Office called it a failure, with only a fraction of the allocated budget actually spent.
What Replaced It
The government replaced the Green Homes Grant with several targeted programmes:
- Boiler Upgrade Scheme (BUS): £7,500 for heat pumps — the main replacement
- ECO4: Free installations for low-income households
- Home Upgrade Grant: For local authority schemes
- SHDF: For social housing improvements
Green Homes Grant vs BUS Grant
| Feature | Green Homes Grant | BUS Grant |
|---|---|---|
| Amount for heat pumps | Up to £5,000 | £7,500 |
| Who applies | Homeowner (complex process) | Installer (simple) |
| Processing time | Months (often never) | 2-4 weeks |
| Status | Closed March 2021 | Open until March 2028 |
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Frequently Asked Questions
What happened to the Green Homes Grant?
It closed in March 2021 after six months due to poor administration and low uptake.
What replaced the Green Homes Grant?
The Boiler Upgrade Scheme (£7,500 for heat pumps), ECO4, and local authority schemes.
Is the BUS grant better?
Yes. It is simpler, more generous (£7,500 vs £5,000), and better administered.
About UK Heat Pump Grant Policy
The Green Homes Grant's failure led to a fundamental rethink of how the UK delivers energy efficiency grants. The Boiler Upgrade Scheme is simpler and more effective, with installers managing applications through Ofgem. Alongside ECO4, Home Energy Scotland, and the evolving landscape of government incentives, UK homeowners now have better access to heat pump funding than ever before. The complete grants guide covers all current options. Those also exploring solar panel grants can find that renewable energy funding has improved significantly since the Green Homes Grant era.