As you have probably already heard, the Green Deal Home Improvement Fund was announced in the last couple of weeks, increasing the funding available for solid wall insulation and making it an even more attractive proposition for households. It all kicks off at the start of June, so you will be able to take advantage of this really soon
UPDATE DECEMBER 2014 – The new GDHIF has now been announced providing grants of up to £4k for solid wall insulation – I have reflected these changes in the blog below to take into account these new funding levels.
In this blog, we are going to look at some typical payback times given the much-reduced costs created by this Government funding.
How much will I pay?
To put it simply, you will get 67% of the cost of the job paid for by the GDHIF grant up to a maximum of £4,000.
This means that despite having to pay for the job upfront, on completion you will be able to claim up to £4,000 of the total cost of the job back.
Since you can only get 67% of the cost of the job paid, if the job is less than £6,000 the amount of cashback you will be eligible to will be less than £4,000. Likewise, if the total cost of the job is over £6,000, your GDHIF grant is capped at £4,000, and you will need to fund anything over and above this.
To give a few examples:
A mid terrace maisonette gets internal wall insulation at a cost of £6,000. The customer receives £4,000 in cashback and therefore the work will have cost them £2,000.
- A 1930’s semi gets external insulation at a cost of £8,000. The customer receives £4,000 in cashback and the work ends up costing them £4,000.
- A large detached property has insulation installed at a cost of £12,000. They receive the full cashback (capped at £4,000), so they will need to pay £8,000 themselves.
How much does solid wall insulation save?
Although it can be a costly procedure, the good news is that most properties will save hundreds of pounds a year by getting solid wall insulation. That means that combined with the generous cashback, the insulation will pay for itself very quickly. Here we give a few typical examples to give you an idea of how quickly your insulation will pay back (we have based these costs on a price of £90 per square meter, but every property will be different):
|Property||Typical Savings||Cost of Works Before Cashback||Actual Cost to Customer (After Cashback)||Payback Period|
|2 Bed Mid Terrace Maisonette||£200/yr||£5,000||£1,650||8 years|
|3 Bed Semi||£375/yr||£10,000||£6,000||16 years|
|4 Bed Detached||£750/yr||£15,000||£11,000||15 years|
Returns of between 8-15 years are pretty good – and that is without taking into account the rising fuel costs we will see in the coming years. Solid wall insulation will last a lifetime too (unlike a new boiler for example), so it will keep on saving you money for many years to come. There has never been a better time to look at solid wall insulation, so get a Green Deal Assessment and see how much you will save.