The Green Homes Wales pilot scheme was launched in autumn 2024, according to a Welsh Government report on the Warm Homes Programme1. It has offered households whose income is above the threshold of eligibility for Nest or ECO4 access to trusted advice, interest-free finance and vetted retrofit experts1.
Since its introduction, the scheme has received more than 8,000 expressions of interest, leading to 1,700 whole-home assessments and the issue of 445 loans to support home energy improvements at an average of £14,500 per loan1. Homeowners have invested in measures such as insulation, solar panels and low-carbon heating systems1. The report states that the free technical reports are also giving householders greater confidence to make informed decisions about future improvements to their homes1.
The Welsh Government's rapid review of the pilot concluded that the focus should remain on ensuring households have ready access to the advice, support and financial options they need to improve their homes1.
"An interest-free financial offer will always be popular. However, the high quality attained by use of vetted businesses and the high level of customer satisfaction with the end result suggests there are wider learnings from the pilot."
The pilot sits alongside other Welsh schemes. Nest, the Welsh Government's energy efficiency scheme for low-income households, was launched on 1 April 20241. In 2024-25 its improvements produced an estimated £595 average annual reduction in energy bills, with 98.4% of installations surveyed passing first time1. The Optimised Retrofit Programme has allocated £480 million since 2020, enabling over 42,000 energy efficiency upgrades1.
The report gives the following figures for the pilot and related schemes:
| Item | Figure |
|---|---|
| Expressions of interest | More than 8,000 |
| Whole-home assessments | 1,700 |
| Loans issued | 445 |
| Average loan value | £14,500 |
| Nest average annual bill reduction, 2024-25 | £595 |
| ORP funding allocated since 2020 | £480 million |
The report was first published on 16 July 20261. It states that a formal evaluation of Nest has been started and will report in 2027-281. It also notes that since the announcement that the Energy Company Obligation Phase 4 (ECO4) was coming to an end, there has been a surge of applications to the Nest scheme1. Installations in Wales account for approximately 5% of Boiler Upgrade Scheme vouchers issued and redeemed over the period May 2022 to May 20261.
Why it matters for households
The pilot addresses a gap for households that earn too much to qualify for Home Energy Grants in Wales such as Nest or ECO4 but still face the cost of improving a cold or inefficient home1. Its combination of Free Home Energy Advice in Wales with interest-free loans and finance schemes for home energy work means the upfront cost of measures such as insulation, solar panels and low-carbon heating can be spread rather than paid in a lump sum1. The average loan of £14,500 indicates the scale of work involved1.
For a household's energy independence, the practical effect is that decisions about a home's fabric and heating are supported by an assessment and a technical report rather than made in isolation1. The report says the free technical reports give householders greater confidence to make informed decisions about future improvements1. The vetted-contractor element is also relevant to quality: the report links the use of vetted businesses to high customer satisfaction with the end result1.
The wider context is that support in Wales is changing. ECO4 has closed, leaving what the report describes as a gap in investment and confusion among the public and support organisations regarding future support1. £86 million of consequential funding has been allocated to Wales across four years because of the ECO closure and proposed successor support in England1. The report states that the UK Government's Warm Homes Plan includes a Warm Homes Fund to be delivered in partnership with the private sector, which will include opportunities for households in Wales to access loans for energy efficiency upgrades1.
What happens next
The report sets out immediate opportunities and longer-term steps towards a cross-tenure retrofit programme, but the published text does not detail those measures beyond the point at which it is cut off1. A formal evaluation of Nest will report in 2027-281. The Optimised Retrofit Programme is in its final year in its current form, and the Welsh Government says it is using its findings to inform any successor scheme within the sector as well as its wider retrofit programme1. The report states that the Boiler Upgrade Scheme is expected to continue to operate in Wales until at least 20301.