Tasked with tackling the 14 million or so poorly insulated homes in the UK, the Green Deal has been given a welcome boost, thanks to the Treasury announcing last week that it is to inject £200 million into the scheme.
It’s hoped the new funding incentive will encourage homeowners to take part in the energy efficiency programme, despite previous trials of similar free energy efficiency schemes having under performed.
In an increasingly volatile energy market, the Government is on a mission to deliver a secure energy system for the UK, and the Green Deal is the cornerstone of that drive. But there are concerns that the Government’s ambitious home insulation plan – which launches next October – may not be successful enough, in terms of persuading people to take part, and may therefore never reach its full potential.
Under the scheme, homeowners will be able to take out a “loan” up to £10,000 to install energy saving measures, such as cavity wall and loft insulation. The loans will be paid off over the course of 25 years through small increases in energy bills. Delivery will be key to its success and is set to incorporate time-limited offers to encourage people to take up the scheme. Anyone taking part in the scheme will receive a cash back of up to £150 cash back, as a means of encouraging participation.
Energy and climate change secretary, Chris Huhne, said: “We want the green deal to be a game changer for British consumers who’ve been buffeted by global energy prices,” said Chris Huhne, the energy and climate change secretary.
The Department of Energy and Climate Change (DECC) has estimated that households taking up the Government incentive should be saving money on their energy bills within two years. Come 2020 an average household should be paying £94 a year less for their energy bills, compared to households without the policies in place.
Through the Green Deal, the Government is aiming to save millions of people from fuel poverty and create around 65,000 new jobs.