Green Homes Grant update: It CAN be used with DRHI

7 August 2020

Following updates earlier this week from government around the Green Homes Grant, more (and changing) detail continues to emerge.

In our latest update from BEIS, we have been advised that a Green Homes Grant CAN be used in conjunction with Domestic RHI (DRHI).

In this scenario, the homeowner will first apply for a Green Homes Grant and then subsequently can also apply for DRHI. The amount of their Grant is then taken off the value of their projected DRHI payments.

However, this cannot work the other way round i.e. you can’t apply for DRHI or currently be in receipt of DRHI for a specific installation that constitutes a measure under the Green Homes Grant, and then subsequently apply and receive a Grant.

As DRHI applies to a specific installation, identifiable via an MCS certificate, a homeowner could choose to have a further renewable heat measure using the Green Homes Grant. For example, they could already have a Heat Pump attracting DRHI but then under the Green Homes Grant opt for Solar Thermal. The Solar Thermal installation would attract a separate MCS certificate.

Ian Rippin, CEO of MCS said, “Although it has added to confusion for our stakeholders, we do welcome this clarification from government on pairing the incentives as I do believe it will stimulate demand from those who need help to find the upfront cost of an renewable heat installation, but they can then still benefit from DRHI over the payback period. If you like, this is an upfront payment being made out of their DRHI allowance.”

MCS continue to liaise closely with BEIS and are working hard to provide clarity under an emerging picture.

To help answer your questions and queries around the Green Homes Grant we are holding a Q&A webinar with our CEO on Wednesday 12th August at 1.00pm. To book a place and attend, please click here and register.