Host Anna Scothern (NHIC CEO) is joined by Faisal Hussain (HIES Chief Executive) and Stew Horne (Energy Saving Trust) in this latest episode on the new ‘Beyond Tools: Navigating Business Success’ series, hosted by The National Home Improvement Council (NHIC), and sponsored by HIES Consumer Code. Together, they explore available grants and incentives specifically tailored to renewable energy and solar initiatives.
The renewable energy sector is rapidly evolving, with financial support becoming increasingly complex, yet highly beneficial to all stakeholders. Understanding available grants can make energy-efficient upgrades more affordable for homeowners, while installers can leverage these incentives to grow and diversify their businesses.
This podcast examines both specific grants and incentives as well as broader, more generic resources. Faisal Hussain, HIES CEO and Stew Horne, Energy Saving Trust Head of Policy, tap into their expertise and resources to offer valuable support and guidance. Additionally, the possibilities offered by ECO4 , are discussed within the podcast episode.
Whether you are a consumer or installer, staying informed about various incentives and grants can significantly impact your journey toward energy efficiency and sustainability.
The role of grants and incentives
Let’s face it, renewable energy products can be expensive. Despite long-term savings and benefits, the upfront investment can be a significant barrier. Grants and incentives play a crucial role in stimulating market changes.
Stew Horne, Energy Saving Trust Head of Policy, emphasises the importance of these incentives in providing the supply chain market with certainty. He ensures a steady demand for services and measures, stating, “For low-income and vulnerable people, 100% grants are crucial for affordability, reducing energy costs, and keeping homes warm. But for higher-income groups, partial grants, zero-interest loans, or tax incentives can encourage investment in energy efficiency”.
Government grants in the UK
There are many government grants available in the industry to installers and homeowners:
- Energy Company Obligation (ECO4) Scheme: A government-supported initiative, aims to help reduce household carbon emissions and provide more energy efficiency measures to UK Homes.
- Great British Insulation Scheme (GBIS): Previously referred to as ECO+, is a government scheme designed to help people insulate their homes.
- Boiler Upgrade Scheme: Incentivises people to install low-carbon heating systems as they replace their old boilers over the next decade.
And that’s not all.
Government incentives
Governments often use incentives to drive market behaviour and direction. Over time, the effectiveness of various energy efficiency schemes has varied, with regional differences adding complexity. The Boiler Upgrade Scheme designed to promote heat pumps and phase out gas boilers, highlights this. Despite their long lifespan, heat pumps come with higher upfront costs, making grants essential to stimulate market growth. As the market matures, these costs are expected to fall.
Installer engagement
Installers play a pivotal role in this ecosystem. They field numerous consumer enquiries about available grants and educate them about financial assistance like the Boiler Upgrade Scheme. By doing this, installers help bridge the gap between high upfront costs and the financial assistance available. This proactive approach benefits consumers and opens new revenue streams for installers. Faisal Hussain, HIES CEO, encourages installers to explore the market and seek guidance on navigating this space effectively. He suggests, “Installers are cautious about investing in certifications, stock, and staff if the grants are pulled quickly. However, long-term stability, like the Boiler Upgrade Scheme running until 2028, installs confidence to invest”.
Addressing challenges
Despite their benefits, grants and incentives come with their own set of challenges. Short-term grants, such as the Green Homes Grant during the COVID-19 pandemic, can create urgency and pressure. Stew Horne, Energy Saving Trust Head of Policy, explains that long-term commitment is crucial for success, as seen in Scotland and Wales. He also highlights the issue of complexity, “Finding the right measures and financial tools can be confusing”.
Navigating the vast amount of available grants and incentives can be daunting for homeowners and businesses alike. Simplifying the process could significantly enhance accessibility. For instance, France offers a more straightforward system with single points of access for advice and funding. Adopting a similar approach in the UK could streamline the process, making it easier for consumers to find and access the support they need.
Installer Opportunities
Understanding and navigating these grants and incentives can unlock significant opportunities for installers. By diversifying their offerings to include grant-supported work, they can tap into new revenue streams, expand their businesses, and contribute to the broader goal of decarbonisation. This could potentially involve taking on apprentices, upskilling staff, and investing in new technologies.
Faisal Hussain , HIES CEO, emphasises the importance of engaging with available resources, understanding local markets, and seeking help to navigate the opportunities, “Grants and incentives are here to stay and will grow in the future”.
Final Thoughts
For homeowners and installers alike, understanding and accessing financial support can significantly impact the home improvement industry. Stew Horne, Energy Saving Trust Head of Policy, recognises that every situation is unique, advising to “Start by understanding your own needs and objectives, and utilise the available advice services and resources to navigate this sector effectively”.
Listen to the full episode: ‘Beyond Tools: Navigating Business Success’ serieshttps://nhic.org.uk/the-nhic-podcast-beyond-tools-navigating-business-success-series/