• >
  • Guides>
  • Coronavirus: How to add value to your home with the 'Green Homes Grant' Scheme

How to add value to your home, using the 'Green Homes Grant' scheme

The UK Government is offering homeowners up to £5,000 towards a variety of energy efficient improvements to their homes. The personal finance experts at money.co.uk have explored how you can make investments through the scheme to increase the value of your home.
Share this guide
Picture of EPC rating circled outside a house

When thinking about how to add value to your property, many homeowners renovate their home to improve its aesthetics or its practicality. While a new kitchen or bathroom may lure in potential buyers, they can be expensive. So, if you are looking to add value to your home but have a tighter budget in mind, it is important to consider all the options that would help ensure a maximum return on investment.

What many people are not aware of, is that simple and environmentally friendly renovations can help sellers to make a bigger profit, without breaking the bank.

Compare credit card offers to find the right one to help spread the cost of your spending.

Adding value by improving your EPC rating

Improving your home's EPC rating from D to B could increase its overall value by £16,000. With the government's new 'Green Home Grant' vouchers, homeowners can get up to £5,000* for environmentally friendly renovations that will contribute to making their home greener and more desirable.

The 'Green Homes Grant' scheme identifies primary and secondary eco-friendly improvements that you can make to your home using the money on offer.

You must have made or already have all the primary measures before you can use the grant for the secondary measures.

With this in mind, we have investigated the new scheme and identified the primary and secondary green home renovations that you can use to increase the value of your house.

The primary measures that will add value to your home

To be able to get financial support through the Green Homes Grant scheme, your household has to be making one of the following types of ‘primary’ home improvements:

  • Insulation (solid wall, cavity wall, under-floor, loft, flat roof, room in roof or park home)

  • Low carbon heating systems (air source heat pump, ground source heat pump or solar thermal)

Ground source heat pump (primary measure)

Value Increase: +5.4% (£13,407)

The cost of installing a Ground Source Heat Pump is on average £14,000 - a sizeable sum. However, with the government's grant saving you £5,000, this super green heating option is definitely worth considering.

Ground source heat pumps use buried pipes to extract heat from the ground, then pass fluid into a heat exchanger within your house, to heat your home and hot water. 

Research reveals that installing a new heating system could increase your house price by as much as 5.4% - which against the average house price could add up to £13,407.

While the cost of installing a ground source heat pump is more expensive than traditional options, not only will it reduce energy bills but it also reduces your carbon emissions.

This form of heating will enhance your home's EPC rating, making it more attractive and more valuable when entering the market.

Biomass boiler (primary measure)

Value Increase: +3.2% (£8,000)

Adding a new boiler can welcome a warming profit to your home when you decide to list it for sale. A biomass boiler is not too dissimilar to a conventional gas boiler, enabling you to heat your home and hot water. However, rather than using gas to produce heat, a biomass boiler combusts sustainably sourced wood pellets.

While the initial cost of a Biomass boiler is more costly than your usual gas boiler, the long term savings will make it that much more appealing. By installing a Biomass Boiler, you, or prospective homeowners, could save up to £700 each year, compared to an electric system.

Usually, a biomass boiler would set you back £10,000. However, with the government grant, it's now half price, meaning you would need to invest just £5,000. It is estimated that investing in a new boiler, prior to putting your house on the market, would increase your property value by over £8,000- 3.2% of the average house in England.

Solar Panels (primary measure)

Value Increase: +14% (£34,758)

The cost of installing a solar panel is on average £4,800. With the government grant allowing you to save on this, it would cost homeowners just £1,600, and increase your home value by a sizeable amount. Powered by reneweable energy, it is a strong force in lowering your carbon footprint.

Installing panels capture's energy from the sun, then generates it into electricity. You would normally see the panels installed on the roof, however, it is possible for them to be implemented into the ground level of your home too.

Research reveals that properties that have implemented solar panels within the UK, have seen an increase of 14% on average. For the average home in England, this will boost profits by a huge sum of £34,758.

Insulation Measures (primary measures)

Value Increase: +6.4% (£16,000)

As identified previously, making green home improvements that shift your property from a D to B on the EPC scale can increase the value by £16,000. To do so, you would need to earn between 13-26 points.

Using the grant for insulation can do just that:

*cost of home improvement based on a for a semi-detached house in England, provided by The Energy Saving Trust

If your home is currently sitting on the higher end of the D scale, you could do this with just one or two green home improvement. While implementing solid wall insulation would set homeowners back £13,000, with the 'Green Homes Grant', it would cost £8,000 and allow you to pocket double that once your home is sold.

Alternatively, homeowners could spend less than £520 by installing cavity wall and loft insulation, and gain up to 25 points.  This would result in a 6.4% uplift on the average home.

The secondary measures that add value to your home

As long as you plan to make at least one of these ‘primary’ home improvements, you can also get funding for ‘secondary’ changes, including:

  • Draught proofing

  • Double/triple glazing (if you’re replacing single glazing windows) 

  • Secondary glazing (in addition to single glazing) 

  • Upgrading to energy efficient doors (if you’re replacing doors installed before 2002).

  • Heating controls and insulation - including appliance thermostats, hot water tank thermostats, hot water tank insulation, smart heating controls, and thermostatic radiator valves.

It is important to note that any ‘secondary’ improvements cannot be worth more than the cost of a ‘primary’ home improvement measure.

For example, if someone chooses to install cavity wall insulation, and receives £1,000 (a measure from the primary category), the maximum they can receive for a 'secondary measure', would be just £1,000.

Double glazing (secondary measure)

Value Increase: +10% (£24,827)

The cost of double glazing varies depending on how many windows are in your household. For the average UK home with 16 windows, it could cost around £4,250 to double glaze the entire home. 

Double glazing is truly worth the investment. Windows will last 20 years prior to needing a replacement, and as well as being super energy efficient, they are generally safer too.

Keeping your house well insulated in the winter months, allows homeowners to save on both energy bills and carbon emissions.

Additionally, double glazing makes a home generally more desirable for purposes of security, style and noise reduction. Our research reveals that it can add a whopping 10% to your home when it comes to selling it, so would definitely be worth investing if you are eligible for secondary purposes using your 'Green Homes Grant' to invest.

However, with double glazing equalling such an increase in value, should you use just £2,000 of your voucher towards double glazing, it is definitely worth the investment.

Heating controls (secondary measure)

Value Increase: +6.4% (£16,000)

A smart thermostat allows you to control the heating, even when you're away from your home. Smart heating controls play a key role when it comes to reducing home energy bills, and carbon emissions.

Recent research reveals, that spending just £179 on smart appliances could enhance the value of your home by up to £16,000 in value. Albeit, a smart thermostat alone may not solely increase the value of your house, it is a step towards your property having a "smart home" status, once advertised.


Analysing various sources, money.co.uk looked at which of the home improvements specified within the 'Green Home Grants' scheme would add value to a home within England.

Through a variety of sources, highlighting how much each installation would cost on average, money.co.uk worked out the value that the government would provide for each home improvement.

This is on the basis that the government will provide a £5,000 voucher that covers two-thirds of the cost of specified home improvements.

Following this, we worked out the average profit of each a home improvement, based on the average home in England being worth £248,271.

*Households with the lowest income in England can receive a voucher of up to £10,000, covering the full cost of renovations. However, the majority of homeowners will be able to access just £5,000, therefore money.co.uk based its research on that.

If you are a homeowner and looking to take advantage of the government's Green Homes Grant, be sure to compare both personal loan and credit card options, if you need to borrow to make such home improvements.

Compare loans

Need a loan? Compare loan lenders side by side to find one that is cheap to pay back, lets you borrow what you need and has repayments you can afford.

Additionally, it is vital that you have home insurance in place, should anything go wrong, in order to cover yourself financially. This will protect you against any breaks or damages to your home.

Protect your home and belongings for less by comparing home insurance policies to cover a range of property types and individual circumstances.

About Salman Haqqi

Salman is our personal finance editor with over 10 years’ experience as a journalist. He has previously written for Finder and regularly provides his expert view on financial and consumer spending issues for local and national press such as The Express, Travel Daily, and The Daily Star.

View Salman Haqqi's full biography here or visit the money.co.uk press centre for our latest news.

About Salman Haqqi

Salman is our personal finance editor with over 10 years’ experience as a journalist. He has previously written for Finder and regularly provides his expert view on financial and consumer spending issues for local and national press.

View Salman Haqqi's full biography here or visit the money.co.uk press centre for our latest news.