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Green Deal begins.. very quietly |
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2 Oct 2012, 12:36 PM
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The government's Green Deal was officially launched yesterday, but there was no fanfare - the scheme is still dogged by uncertainty and unanswered questions. No large retailers have yet signed up to the scheme, which has faced a barrage of criticism from concerned bodies who claim it is too complex and could disadvantage poorer people.
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Under the scheme, households will be able to sign up for improvements such as insulation and renewable energy installation, paid for through loans that are paid back by additions to their energy bills. The loans are attached to the property, so future buyers will have to pay for past improvements, but the repayments should be offset by energy savings.
Ministers are urgently considering how to give people a financial incentive to sign up to the deal. Officials have been working for months on a system of cashback incentives that could amount to £200m, but final details have not yet been settled, in part because of the complexity. Any incentive would have to be capped per household, at a level still not decided.
Government had hoped that retailers such as B&Q would get involved, believing that the public trust their brand and image, but so far none have committed to the scheme.
Andrew Warren, director of the Association for the Conservation of Energy, said he was "very alarmed" by the delays in finalising arrangements. But he added the possibility of using council tax deductions as an incentive was still under consideration. "If that emerges too, you're starting to build a package that will change the whole atmosphere of gloom around the green deal," he said.
The Department of Energy and Climate Change said companies were expected to sign up to offer the scheme to their customers within the next few months.
From October 1st, householders will be able to register to have their home assessed for green deal improvements. Accredited inspectors will give advice on efficiency measures ranging from loft insulation, typically costing no more than about £200, to double glazing and the far more expensive solid wall insulation, which can cost more than £7,000 for a typical home.
But customers will have to wait until 28 January for work to start on any improvements, and for loans to be approved. This phased introduction allows ministers to fulfil their promise of launching the scheme this autumn, while giving companies additional time to design their offers and put the means in place to deliver them.
Velux has warned that if the Green Deal fails to win the confidence of consumers it could be a ‘kick in the teeth’ for the wider energy efficiency retrofit market.
Speaking as a panellist at the Green Deal Dialogue fringe event at the Liberal Democrat party conference this week alongside the Minister for Energy and Climate Change, Edward Davey, VELUX Design Manager Paul Hicks said it was imperative that energy efficiency measures reaped the rewards homeowners expected. He also called for assurances that the ‘Golden Rule’ – which requires that the cost of any energy efficiency measure must be equal to or less than the expected saving - is properly applied.
Hicks added: “It is important that the Green Deal considers how multiple energy efficiency measures will integrate and also how the maintenance of these measures will be paid for.”
Davey said the Government had moved to address some of these issues through training, accreditation and the creation of the Green Deal ombudsman: “We have also made adjustments to a product’s performance by considering a variety of in-use factors that can affect the way they operate. Assessors will be required to look at a property as well as its occupancy. Through the gradual roll-out of the scheme we can make sure we get it right and help to build confidence in the Green Deal.”
The panel, which also included MP Simon Wright and Deputy CEO of The Glass and Glazing Federation Giles Wilson, also agreed that the industry needed to be convinced of the benefits of becoming Green Deal accredited and the opportunities available to SMEs to get involved in the process. Support from local authorities and a push on take up of the scheme by entire roads rather than individual properties were discussed as ways of reassuring SMEs of demand.
All of the contributors agreed that the Green Deal will significantly benefit homeowners and businesses if applied correctly but Davey acknowledged that Government still need to “dot the Is and cross the Ts.”
Other financial concerns involve the cost of the loans. The Green Alliance thinktank has calculated that if loans are made at commercial rates of interest homeowners may wait for years or never see a payback. Poverty campaigners said poorer and more vulnerable people could lose out, as they are less able to access loans and would be put off by the additions to their energy bills.
One study found the rate of takeup could be lower than for previous schemes to improve energy efficiency as consumers were confused by the complexity of working out interest rates and likely savings. The Federation of Small Businesses warned small businesses were likely to reap "very little benefit" from the deal, as "potential cost savings are eaten up by rising energy bills".
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| Positive review of this story |
Malcolm Ingham  |
16 Oct 2012, 11:16 AM |
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Does not say how one can register Lots of articles appearing on this subject but all lack detail. A good starting point would be to tell people how to register for the green deal.
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