Welsh Government announces additional funding for green homes scheme

Welsh households looking to cut energy bills and reduce their carbon footprint will benefit from more than £5 million in additional funding for the Green Homes Wales scheme in 2026–27.

The Welsh Government initiative, managed by the Development Bank of Wales, supports eligible homeowners in making energy-efficiency improvements and installing low-carbon heating systems. Since the programme launched in October 2024, almost £12 million has already been invested.

Green Homes Wales offers interest-free loans ranging from £1,000 to £25,000, repayable over up to 10 years.

The scheme also provides fully funded expert advice to help homeowners identify the most effective improvements for their properties.

Applicants begin with an initial assessment and a whole-home review, which identifies potential upgrades such as improved insulation, modern heating systems or low-carbon technologies.

Homeowners then receive tailored guidance on the improvements available and support with applying for finance.

All work carried out through the scheme is overseen by an independent Retrofit Coordinator to ensure installations meet safety and quality standards.

The Welsh Government said the new £5 million allocation follows strong demand for the scheme during its first year, reflecting growing interest among households seeking to lower energy costs and improve the energy efficiency of their homes.

Green Homes Wales can also be used alongside the UK Government’s Boiler Upgrade Scheme, which offers grants for heat pump installations across England and Wales.

In those cases, applications are submitted by approved installers on behalf of homeowners.

The programme can also complement collective purchasing initiatives organised by some local authorities, allowing households to access additional support when upgrading their homes.

Cabinet Secretary for Housing and Local Government Jayne Bryant said the scheme was helping households make practical changes to reduce costs and emissions.

“Green Homes Wales has already helped hundreds of households across Wales reduce their energy bills and lower their carbon footprint, and the strong demand we’ve seen shows just how much appetite there is among homeowners to invest in their homes,” she said.

“This new £5 million investment means even more people in Wales will be able to make the improvements they need to future-proof their homes and lower their energy bills, whether that’s installing a heat pump, upgrading insulation or modernising their heating system, without needing thousands of pounds upfront.”

‘Strong demand’

Cenydd Rowlands, property director at the Development Bank of Wales, said the additional funding would allow the scheme to continue supporting homeowners across the country.

“We’ve seen strong demand for the support provided by Green Homes Wales from homeowners across Wales,” he said.

“This new funding will allow us to continue meeting that demand and support households as they look to improve energy efficiency and cut bills.”