Welsh households looking to cut their energy bills and reduce their carbon footprint will benefit from more than £5 million in new funding for the Green Homes Wales scheme in 2026-27.
Green Homes Wales is a Welsh Government initiative, managed by the Development Bank of Wales, designed to support eligible homeowners in making energy-efficiency and low carbon heat improvements to their homes. Since its launch in October 2024, the Welsh Government has invested almost £12 million into the scheme
The scheme offers interest-free loans ranging from £1,000 to £25,000, with repayment terms of up to 10 years, as well as fully funded expert advice — giving households the support and flexibility they need to make meaningful improvements without large upfront costs.
Homeowners begin with an initial assessment and a detailed whole‑home review to identify suitable improvements, before receiving tailored advice and support to apply for an interest‑free loan. An independent Retrofit Coordinator oversees all works to ensure they are safe, high‑quality and fully compliant.
The £5 million allocation follows strong demand for the scheme this year, reflecting the appetite among Welsh households to take control of their energy costs and invest in their homes.
Green Homes Wales can be used alongside the UK Government’s Boiler Upgrade Scheme, which provides grants for heat pump installations across England and Wales. Homeowners do not need to apply directly, an approved heat‑pump installer will submit an application on their behalf.
It also works in conjunction with collective purchasing schemes being organised by a number of local authorities in Wales, helping households access even more support.
Cabinet Secretary for Housing and Local Government, Jayne Bryant, said: “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.”
Cenydd Rowlands, Property Director at the Development Bank of Wales, said: “We’ve seen strong demand for the support provided by Green Homes Wales from homeowners across the country.
“This new funding will allow us to continue to service that demand, and support households as they look to improve their energy efficiency and cut bills.”
