Free or cheap loans for solar panels among key measures in Government's 'Warm Homes Plan' – Martin L

MSE_Clare

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Free or cheap loans for solar panels among key measures in Government's 'Warm Homes Plan' – Martin Lewis says it could cut bills if 'done right'

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WiserMiser

It all sounds very worthy, but they really haven't thought it through.  The cost of improving a rental property from E to C will often be prohibitive.  It'll be the last straw for many landlords so they'll just have to sell up.  That won't help the tenants, fewer properties will be available plus higher rents.

If landlords do upgrade they'll have to increase the rent.  Again, this won't help tenants.

born_again

Only danger with these schemes is that companies spring up do rubbish work take the money & run. Every previous scheme like this is riddled with complaints.

Perhaps far better vetting of the companies that do the work, is something that ML should focus,

WiserMiser

The other problem seldom mentioned is that when the heat pump packs up in a decade or so, there won't be any grant for the next one.  It's something of a hostage to fortune; it remains to be seen whether heat pumps will become cheaper than gas boilers.

QrizB

WiserMiser said:

It's something of a hostage to fortune; it remains to be seen whether heat pumps will become cheaper than gas boilers.

Worth noting that bare heat pumps are already as cheap as gas boilers. You can buy one for under £1000.

Most.of the additional cost of having a heat pump installed is the cost of changing other stuff - piping, radiators, HW tanks, electrical wiring and so on.

michaels

Will bet any money PV installed under the rules of this new policy will cost more overall even taking into account the free loan than they currently cost with no govt subsidy.

matt_drummer

WiserMiser said:

The other problem seldom mentioned is that when the heat pump packs up in a decade or so, there won't be any grant for the next one.  It's something of a hostage to fortune; it remains to be seen whether heat pumps will become cheaper than gas boilers.

@QrizB has already explained to you that heat pumps are already as cheap as gas boilers and the cost of initial installation has little relevance to the cost of replacement in due course.

As somebody who has swapped a heat pump I can tell you that it is a very quick job, I could do it in a leisurely 3 hours and it is within the realms of the average diy'er as no gas is involved.

DAVEMCFC

The news mentioned that anyone with a household income of under 35k will be eligible for help. What happens if you have zero income, but 35k in savings?

tfhnota

Judging on the eco-4 flex or local grant criteria, savings are not included but interest received may be but that will be under the limit so no problem (unless they change it), there are supposed to be more ways to access it but these have not been finalized yet so just have to keep an eye open for updates,

The loans for Green stuff were tried by the Conservatives but had almost zero take-up. 

Worth getting some solar/battery quotes now so you can compare with the new quotes when the grants are actually available.

Hopefully there will be a way to avoid energy agents (who the councils pass the buck to for non-benefit claimants) who tend to top up the costings for their own profit, and go directly to the energy companies, such as Octopus, who do their own installs - letting the applicant apply for a voucher directly to the HMRC, who can check their taxable income for the previous years or giving permission for the energy company to do so. This will get rid of a few levels that eat up the grants.

Octopus are keen on propagating zero bills for households, albeit with the proviso that they can access the battery and solar for their own use when power is in short supply, thus squaring the circle, and if it works well enough there is the possibility of not needing such a massive grid expansion as planned.

QrizB

tfhnota said:

Hopefully there will be a way to avoid energy agents (who the councils pass the buck to for non-benefit claimants) who tend to top up the costings for their own profit, and go directly to the energy companies, such as Octopus, who do their own installs

Worth noting that, based on recent quotes shared here and on the Green & Ethical board, even the energy companies are expensive when compared with some MCS-certified independent installers.

tfhnota

No doubt, but for eco 4 flex and local grant most people had to go through energy agents rather than directly to MCS installers - be great if the government sets up a system that allows people to go to the MCS installer and then the installer confirms that household income is met via HMRC or via voucher from the applicant. Half the system for MCS companies is already there for heat pumps but those grants are universal so only have to meet eco criteria rather than financial. On the other hand, if they manage to set up the financial checks for solar/battery then they will probably apply the low income test to heat pump installs as well.

A lot of people will be very happy to get solar/battery for free via grants, which they could have done via Eco4 Flex or Local Grant but would have to have a heat pumps as well, which many don't want if they have a recent gas boiler.