Barclays to pay homeowners up to £2,000 to help green their homes and improve energy efficiency - how to apply

Barclays has announced it will pay up to £2,000 to its mortgage holders to help them green their homes as part of a new trial.

It comes after most of its homeowners it surveyed wanted to improve the energy efficiency of their homes, but three in four said they cannot afford the changes they want to make within the next five years.

The bank said it would run a trial to pay back customers who install new insulation, heat pumps or solar panels, among other solutions.

Its initial research found that the best way to drive more energy efficiency improvements in people’s homes was to give them cash to do so. The bank said that the cost was the main thing holding back 73% of homeowners from retrofitting their houses, while 56% do not have enough cash up front at all.

Around a quarter of people said that the payback period on the investment puts them off spending the cash up front.

Currently homeowners are only making small-scale improvements which do not cost much up front, including changing old light bulbs for more energy efficient versions which has only a small impact on a home’s carbon emissions.

The bank added that it would use the data that it collects during the pilot project to help roll-out wider home improvement support measures in the future.

The full £2,000 will be available for homes installing heat pumps, while those opting for solid wall insulation or solar panels will be able to get £1,000.

A smaller £500 payment will be available for loft insulation or new windows, among other initiatives.

Barclays chief executive CS Venkatakrishnan said he hopes the pilot will “go some way towards encouraging consumers to make energy efficiency-related home improvements.”

He added: “There is a clear need to improve the energy efficiency of UK housing, but as our data indicates, cost remains a barrier to turning desire into action.”

Barclays said the work will have to be performed by a TrustMark-registered business or tradesperson. TrustMark is a Government-backed scheme.

Dr Pete Brooks, a behavioural economist at Barclays, said: “When weighing up the costs and benefits of retrofitting, a behavioural bias called ‘hyperbolic discounting’ often comes into play, which in essence means that we tend to prefer smaller, immediate rewards over larger payoffs further down the line.

“With the expected payback period for some home improvements clocking in at over a decade, these larger options may be overlooked. Even if the long-term benefits might be greater, the end result is often inaction.”

How to apply to Barclays Greener Home Award

You can register for the Greener Home Reward if you meet the following eligibility criteria:

• Haven’t previously claimed the reward (one claim per residential property, which must be your main home)
• Have a residential mortgage with Barclays
• Have works matching the eligible home improvements list and carried out by a TrustMark-registered business or tradesperson
• Have the home improvements carried out on the property listed on your mortgage
• Pay your mortgage via Direct Debit - we’ll pay the reward into this account
• You’re not in arrears at the time of registration

On Barclays website it reads that you can only receive one Greener Home Reward (or one between you if you have a joint mortgage) and it must be for the residential property where you permanently live.

You can apply by completing the online application form and Barclays will then send you an email with the next steps.

Registration is open until 1 May 2023.

Home improvement works must then be carried out by a TrustMark-registered business or tradesperson and from Barclays approved list of home improvements.

After completing these steps you can submit your claim form with an invoice, proof of the works and confirmation of payment.

All claim forms must be submitted by 1 November 2023.