Welsh households will gain greater support to lower their energy bills and reduce carbon emissions, as the Welsh Government allocates more than £5 million to expand the Green Homes Wales scheme in 2026–27.
Delivered by the Development Bank of Wales, the initiative enables eligible homeowners to make energy‑efficiency upgrades and install low‑carbon heating without facing large upfront costs. Since launching in October 2024, Green Homes Wales has already benefitted from nearly £12 million of Welsh Government investment.
The scheme provides interest‑free loans of £1,000 to £25,000, repayable over up to 10 years, making energy‑efficient home improvements far more accessible. Households also receive fully funded expert advice, reducing the complexity often associated with home retrofit projects.
The process includes:
- An initial assessment
- A comprehensive whole‑home review
- Tailored recommendations for suitable improvements
- Support to apply for finance
- Oversight from an independent Retrofit Coordinator to ensure all works meet required standards
This end‑to‑end approach is designed to give homeowners confidence, protect quality, and ensure that retrofits deliver real energy savings.
The additional £5 million announced for 2026–27 follows strong uptake throughout the scheme’s first year. Welsh households have shown significant appetite to reduce energy costs, improve home comfort, and contribute to Wales’s wider net‑zero ambitions.
With energy prices and household bills still a major concern for many families, the scheme offers an affordable route to improvements such as insulation, low‑carbon heating systems, glazing upgrades and smart energy technologies.
Green Homes Wales is designed to complement existing programmes, giving households multiple routes to make upgrades:
- It can be used alongside the UK Government’s Boiler Upgrade Scheme, which provides grants towards heat pump installation across England and Wales. Applications are made directly by approved installers, simplifying the process for households.
- It integrates with local authority collective purchasing schemes in Wales, helping communities secure better value and tailored support.
This combination of national funding, local action and expert guidance aims to maximise savings and ensure households can access the right technology for their needs.
Welsh Cabinet Secretary for Housing and Local Government, Jayne Bryant, commented:
“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.
“This new £5 million investment means even more people in Wales will be able to make the improvements they need to futureproof their homes and lower their energy bills — whether that's installing a heat pump, upgrading their insulation, or modernising their heating system — without needing thousands of pounds upfront. And the free expert support means householders can invest with confidence.
“The Welsh Government is committed to ensuring that making your home greener is a choice that's open to everyone and I'd encourage anyone interested in making improvements to their home to find out what Green Homes Wales can offer.”
The Welsh Government has made domestic retrofit a central part of its long‑term decarbonisation strategy. Improving home energy efficiency is essential for reducing carbon emissions, tackling fuel poverty and creating warmer, healthier homes.
Public sector leaders will note that the scheme also supports broader goals around fair transition, community resilience and local economic development – especially as demand for skilled retrofit workers continues to rise.
Image credit: iStock
