What the 2021 Autumn Budget Means for ‘Green’ Installers

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The Chancellor delivered his third budget update of the year, confirming an increase in funding for the green sector ahead of the COP26 summit, business rate exceptions for eco-technologies, and the reintroduction the Green Homes Grant.

£3.9 billion has been set aside to decarbonise buildings, which includes £1.8 billion to support low-income households to make the transition to net-zero while reducing their energy bills.

“…this spending package, along with bold action on regulation and green finance, will keep the UK on track for its carbon budgets …and support the pathway to net-zero by 2050…”

Energy Company Obligation ECO4:

  • This scheme will run from April 2022 until March 2026 at an average cost of £1 billion per year (2021 prices).
  • The main objective is to provide better support to the least energy-efficient homes, making greater progress against fuel poverty targets.
  • Also helps towards the target of improving fuel poor homes as reasonably practicable to EPC band C by 2030, with an interim milestone of band D by 2025. Improving these homes will reduce carbon emissions, contributing to a fair transition to net zero.

The Home Upgrade Grant (HUG):

  • From April 2022, £950M has been committed to supporting low-income households by upgrading the energy efficiency of properties off the gas network in England.
  • The funding intends to enable the installation of multiple measures in these homes to substantially improve performance.

Local Authority Delivery Phase 3 (LAD3):

  • Around £200M of the new funding will be made available for new projects delivering to low-income households in the most inefficient homes on the gas network.
  • The main criteria for on gas properties should remain the same as those in the first two phases of the LAD initiative, including the cost caps for owner-occupier and rented properties, along with landlord contributions.

The Social Housing Decarbonisation Fund (SHDF):

  • This will offer the potential for social landlords to apply more impactful retrofit measures to their housing stock due to a higher cost cap than that of the LAD scheme.
  • A figure of £160M total funding has been announced for the first wave of the programme.
  • Delivery will run until March 2023, hoping to achieve substantial carbon savings, warmer energy-efficient homes, and reduced bills for low-income households.

Utilise funding grants with PAS2030

PAS 2030 was released in July 2019 to support the government’s increased focus on energy efficiency. The standard sets out requirements for installers and is endorsed by the government for public funding such as the Green Homes Grant and ECO.

 

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Julian Russell

Written by

Julian Russell

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