Are any grants available for buy-to-let landlords to improve energy efficiency?
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Government support for energy efficiency has been scaled back in recent months with the end of the Green Deal and reduced feed-in-tariffs for solar panels, but there is still help available if you know where to look.
Making your buy-to-let energy efficient is a good way to keep your tenant happy – and happy tenants are good for your investment.
We reveal the existing government grants that will help turn your buy-to-let portfolio green.
Insulation: There are grants available for measures such as insulation, depending where your property is
A home’s efficiency is scored from A to G depending on how much improvement is needed.
From 2018 all rented out homes will need to have a minimum grade of E before being let. Landlords could be fined or banned from renting a property out if they fail to comply.
By April 2016 tenants will be given the right to ask their landlord for consent to carry out energy efficiency improvements, with the landlord only able to refuse if their request is 'unreasonable'
An energy efficient property is cheaper to run, which is good news for your tenants.
Before paying for green measures such as a new boiler or double glazing out of your own pocket, it is worth checking if your local council or energy provider can help.
The type of support you can get depends also on which part of the UK your buy-to-lets are based.
England, Scotland, Wales and Northern Ireland all offer different types of support.
Support for everyone
You can get payments from the Government in return for installing and generating energy from solar panels on your roof, known as feed-in tariffs.
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Depending on the size of your system, you can get up to 12.47p per kilowatt generated. But this is being cut to as low as 1.63p for a system under 4kWp from January 2016. That will dramatically reduce the returns, however, your tenants will still benefit from lower energy costs thanks to the benefit solar powering some of their use.
Check the Energy Saving Trust website for details of feed-in-tariff changes.
Landlords in England, Wales and Scotland can access renewable heat incentives, which have payments made for certain heating systems such as using biomass fuels.
Northern Ireland landlords can access a similar scheme called Northern Ireland Renewables Obligation Certificates.
England
Landlords used to be able to access funding for energy improvements through the Green Deal.
The government has stopped backing this, but there are still ways you can make your buy-to-let energy efficient.
Energy companies are required to help households make their homes more efficient. More than a billion pounds has been set aside under the Energy Companies Obligation for insulation, energy saving and helping reduce heating costs.
This is run through energy suppliers and is targeted at vulnerable or low income households although all households may apply.
Wales
The Welsh government runs a scheme called Nest that provides free advice on saving energy.
Landlords with a hard to heat home could also be eligible for free support such as boiler improvements or insulation.
The Welsh Government also runs a collective switching scheme called Cyd Cymru, or Wales Together, which aims to give users cheaper deals.
Northern Ireland
Landlords with properties in Northern Ireland can access the Affordable Warmth scheme, which provides grants for installation of energy efficient measures such as boilers or insulation for homes with annual incomes lower than £20,000.
The landlord must be registered with the Department for Social Development’s Landlord Registration scheme and give consent for any energy efficiency improvements to be done.
You may also have to contribute to some of the work.
Scotland
Landlords in Scotland can access a home energy efficiency programme that gives access to cashback and loans for certain measures.
You need to have an assessment with Home Energy Scotland, but landlords can claim up to £1,300 through the Scottish Government’s HEEPS: Cashback scheme.
Up to £500 is available for installing a new boiler, up to £400 for insulation and £300 for other measures like draught proofing and secondary glazing.
Bigger jobs such as installing a new boiler or double glazing could be eligible for an interest free HEEPS loan of up to £10,000.
Small businesses in Scotland, including private sector landlords, can apply for interest free loans of £1,000 to £100,000 to install energy efficient measures such as a biomass boiler or solar panels.
Loans are interest free and repayments are made over four years.
Landlords installing solar panels will pay interest of 5 per cent over eight years, unless you forego the feed-in tariff and renewable heat incentive rates.
Use the interactive map below to see where you can go for support in different parts of the UK.
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