Installing insulation of any kind can prove to be an expensive venture. Whilst the payback and benefits are considerable, the affordability can hinder the uptake. However, the UK Government runs several grants that are specifically designed to lower or completely cover the retrofit of homes with insulation. Through our partnership with EWI Pro, we can supply materials covered by a multitude of grants. However, there are many and they can be quite complicated. Therefore, we will attempt to dissect them in today’s blog. You can also contact EWI Pro for advice about grant funding for insulation projects.
The cost of insulation in 2023
The costs for installing various types of wall insulation in the UK in 2023 can vary based on several factors including the size and type of your home, the accessibility of the walls, the type of insulation you choose, and the installer you work with. Here’s a breakdown of the costs associated with external wall insulation, cavity wall insulation, and internal wall insulation:
- External Wall Insulation:
- Costs typically range from £7,000 to £15,000 depending on the type and size of your home.
- On a per square metre basis, the cost is usually around £100, which could translate to £8,000 for a small flat and up to £22,000 for a large detached house.
- Cavity Wall Insulation:
- The cost per square metre ranges from £13 to £26 for glass wool and £22 to £65 for polyurethane foam.
- For a typical semi-detached house of about 80m², the price would range from £1,600 to £2,000 plus VAT.
- Specific costs for different types of houses have been provided, with a flat costing between £400 to £450, a mid-terrace house costing between £600 to £650, and a semi-detached house costing around £1,000.
- Internal Wall Insulation:
- Costs per square metre are generally between £40 and £50 but can exceed £100/m² when a new stud wall is built.
- For a typical 3-bedroom, semi-detached house in Great Britain, the installation cost is around £7,500.
It should be noted that these costs are approximate and are subject to change. For example, different forms of external wall insulation will cost more than others. However, more expensive options like Rockwool provide extra benefits, including acoustic insulation and fire resistance.
Insulation grants in the UK
Great British Insulation Scheme
The Great British Insulation Scheme (GBIS) is a government initiative aimed at promoting energy efficiency in homes across the UK by helping to cover the costs of installing new home insulation.
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Introduction and Timeline:
- The GBIS is a newly introduced government scheme launched in the summer of 2023 and runs until March 2026.
- The scheme is a relaunched version of ECO+, announced in March 2023.
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Funding and Scope:
- The scheme has a budget of £1 billion and aims to assist around 300,000 households across the UK with the cost of installing new home insulation. As a result, consumers can save around £300 to £400 annually on their energy bills.
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Eligibility and Target Demographics:
- Targeted primarily at those on lower incomes and living in less energy-efficient homes, specifically those rated D or below on the Energy Performance Certificate (EPC), as well as those in the lower Council Tax bands (A-D in England, A-E in Scotland and Wales).
- The scheme aims to extend support to a wider range of households living in the least energy-efficient homes in the country, particularly aiding those struggling with their bills.
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Operation:
- It operates by obligating energy suppliers to help customers reduce their heating bills through the installation of energy efficiency measures such as loft and cavity wall insulation. The cost may be fully covered by the scheme, or a contribution may be required, depending on the measure and any property issues.
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Application Process:
- Once the scheme launches, households can check their eligibility on the GOV.UK website. Alternatively, they can also check eligibility through a participating energy supplier or local authority. Eligible households will then be contacted about arranging a survey of their home and organizing any installation.
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Administration:
- The scheme is administered by Ofgem, an authoritative body that supervises the electricity and gas markets in Great Britain.
Social Housing Decarbonisation Fund
The Social Housing Decarbonisation Fund (SHDF) is part of the UK government’s initiative to enhance the energy efficiency of social housing, thereby contributing to the broader goal of reducing carbon emissions.
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Upgrade to EPC D Standard:
- The SHDF aims to upgrade a considerable portion of social housing stock that currently holds an Energy Performance Certificate (EPC) rating below D, bringing them up to at least that standard.
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Funding Allocation:
- The fund has been distributed in waves. Wave 1 allocated around £179 million for projects between 2022 and 2023. Wave 2.1 has allocated £778 million for the period spanning 2022/23 to 2024/25.
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Eligible Entities:
- The funding from SHDF is accessible to local authorities, combined authorities, registered providers of social housing, and also registered charities owning social housing to implement energy efficiency upgrades in their housing stock in England.
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Energy Efficiency Upgrades:
- The fund supports a variety of energy efficiency upgrades, which include insulation improvements. For example, in Coventry, 95 homes were upgraded with measures such as EWI and loft insulation under the scheme.
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Collaboration with Energy Companies:
- Energy companies are also collaborating with social housing providers through the SHDF to deliver home energy efficiency upgrades, aiming to make homes warmer and greener. The upgrades may include insulation to improve the energy efficiency ratings of the homes.
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Impact on Social Landlords and Tenants:
- Social landlords, including housing associations, can utilise the SHDF to carry out energy efficiency upgrades in their tenants’ homes, which could include insulation improvements. EWI Pro has recently been involved with the Watford Community Social Housing project. The project, in partnership with Kooka Developments, is retrofitting 285 homes.
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Notification to Eligible Properties:
- If a property is eligible for upgrades under the SHDF, the social housing provider will contact the residents directly regarding the availability of funding for energy efficiency improvements.
Other grants and schemes
The Affordable Warmth Scheme is a government-led initiative targeting low-income households to help improve the energy efficiency of their homes. Eligibility for this scheme often hinges on the receipt of certain benefits. It also hinges on residing in a property with an Energy Performance Certificate (EPC) rating of E, F, or G. Under this scheme, eligible households may receive grants or support to cover the cost of insulation and other energy-saving measures. Therefore, creating a more comfortable living environment while also reducing energy bills.
The Warm Home Discount Scheme operates with a similar objective but is implemented through energy companies. This scheme primarily aims to help low-income households with their energy bills. Under this scheme, eligible participants may also receive a discount on their energy bills. They can also receive a grant to cover the cost of insulation and other energy-saving measures. Again, eligibility is often determined based on the receipt of certain benefits and the EPC rating of the property, aligning with the broader goal of enhancing energy efficiency and alleviating energy cost burdens for vulnerable groups.
Lastly, the Home Heating Cost Reduction Obligation, often known as HHCRO, is another scheme run by energy companies. The aim is to reduce heating costs for low-income households. Under HHCRO, eligible participants can receive grants to cover the cost of insulation and other energy-saving measures. In turn, this helps to reduce their heating costs. Like the other schemes, eligibility is often determined based on the receipt of certain benefits and the energy efficiency rating of the property. Therefore, by providing support for insulation and other energy efficiency upgrades, HHCRO contributes to the broader efforts to enhance energy efficiency, reduce energy costs, and improve living conditions for low-income households across the UK.
