The report states: "The Green Homes Grant Voucher Scheme’s initially announced duration of only six months limited the number of installers who were willing to register for the scheme, and its abrupt closure in March 2021 had significant negative impacts on some participating installers."

The criticism didn't stop there however, and the report adds: "We are not convinced that officials fully acknowledged the breadth and scale of what went wrong, which included a whole host of design and implementation issues."

Some of the other key conclusions of the report include:

  • The scheme’s design was overly complex and did not sufficiently address the needs of consumers and installers
  • The creation of jobs was a priority for the scheme, but the Department of Business, Energy & Industrial Strategy (BEIS) failed to maximise its impact on employment
  • BEIS appointed a contractor without properly understanding whether it could deliver
  • BEIS has persistently failed to learn lessons from previous energy efficiency schemes.

The report urges the need for BEIS to regain the confidence of consumers and industry if it is to realise the ambitions set out in the recently published Heat and Buildings Strategy. It also recommends in planning and implementing the new Boiler Upgrade Scheme, BEIS should engage closely with potential suppliers to properly understand the challenges they may face to scale up, including training sufficient numbers of appropriately skilled workers, and ensure the availability of suppliers across the country.

Commenting on the report, Ian Rippin, Chief Executive at MCS, said: “The Green Homes Grant simply did not achieve what it was intended to do: spearhead uptake of domestic renewables, support confidence in the sector and provide a much-needed boost for installers.

“Since its launch, we openly expressed our frustration at the way the scheme was administered. It was overly complicated to navigate for consumers and installers, placing an undue burden on both.

“The Public Accounts Committee report underlines the scope of the financial failures that beset the scheme. The government must now move forward and ensure that future consumer incentive schemes are operated efficiently.

“We welcome the core recommendations of the report and will continue to work with the government to encourage direct action related to these much-needed changes.

“To rebuild consumer and industry confidence, a future incentive scheme must be built from the ground up in conjunction with the businesses that deliver the work. A well-designed scheme, embedded with proper accountability and scrutiny, is key to repairing the trust that’s been lost.

“The recent Heat and Buildings Strategy is ambitious, but it will only be achieved with strong industry collaboration – something we’re loud and clear on.

“Our message is: listen to our installers and their concerns. Everything from training and scaling up operations, to administration and financial obstacles, must be considered before a new grant scheme is rolled out to consumers.

“The PAC report demonstrates just how significantly the Green Homes Grant underperformed. If we are to reach the UK’s net-zero goals and bolster heat pump installations, then effective, long term policies – that have been well-researched, prepared and tested – are vital.

“This is especially important as the industry awaits the launch of the Boiler Upgrade Scheme, expected in April 2022. It arrives as the Domestic Renewable Heat Incentive closes, so it must not be allowed to suffer the same fate as the Green Homes Grant.”

You can read the full PAC report here.