The Department of Energy and Climate Change have released the first quarterly Green Deal statistics, which have been met to mixed response by leading industry professionals. These statistics show that almost 40,000 people so far have had an assessment carried out.

The key figures for up to the 16th June are:

  • 38,259 homes have had a Green Deal assessment
  • A rise in assessments every month: 7,491 in March, 9,522 in April, 12,146 in May
  • 241 customers have obtained a quote from a Green Deal Provider and have confirmed they wish to make energy efficient improvements to their home
  • Four customers have signed up to a Green Deal Plan and progress is being made to install energy efficient measures
  • 961 people have claimed cashback for a new boiler installation – 902 gas and 59 oil boilers
  • 1,254 installer organisations are accredited and qualified to work within the Green Deal.
Plumb Center's Head of Sustainability Tim Polland has praised these figures, remarking that "40,000 assessments is a significant marketplace and installers will know that represents more than a fad – I can’t imagine any installer not thinking it’s a good thing." He expressed optimism that the scheme would continue to grow past "those who are passionate about the scheme" and that stressed:"...the people at the heart of Green Deal knew it wasn’t going to produce a tsunami of demand at the start, it was going to be a scheme of longevity and the time to judge is at its end, not its beginning."

On the other side of the argument, HHIC (Heating & Hotwater Industry Council) Director Roger Webb considered the figures "very disappointing". He went on to say: "However, on a positive note, they will be a wake-up call for the government to simplify the scheme and to really engage with the small installer. It is not too late for the Green Deal as the scheme has hardly got off the ground and further action will be required to reform the scheme. The heating industry from the success of the cashback incentive want to stress that figures prove that changing a boiler is one of the key routes to gain consumer interest in the Green Deal and enabling further measures to be taken up."

Meanwhile, earlier last week it was revealed that a cross-section of industry leaders had written to all three main political parties in an attempt to persuade them to come together to ensure that the Green Deal doesn't fail. The letter was addressed to energy secretary Ed Davey (Liberal Democrat), minister Greg Barker (Conservative) and shadow energy minister Luciana Berger (Labour) can be viewed in its entirety below;

-----

We are taking the unusual step of writing the same letter to all three of the main political parties, setting out our major concerns with current retrofit policy and our belief that we can only address this most urgent of challenges with a greater degree of cross party consensus, and collaboration between government and industry.

Government’s own figures show that meeting our legally binding carbon targets requires a high level of retrofit across the UK’s 26 million domestic properties, at an average of one home per minute between now and 2050. Clearly this is a monumental task, but it also represents a tremendous opportunity: to reduce energy bills, improve health, provide jobs in the construction sector, and avoid additional costs of new generating capacity.

However, to have any chance of successfully tackling this, it will require government – either this one, or indeed any future one – to address the following major issues:

Green Deal interest rates: The current rate of interest for Green Deal finance is in danger of acting as a major disincentive to take up, as well as minimising the extent of the measures available in a Green Deal package. Taking inspiration from the effect of recent government intervention to support new build homes, government should explore, with stakeholders, what options are available to reduce risk associated with providing Green Deal finance – even if this means greater intervention in the market.

Long term structural incentives: Even if Green Deal was available at a much lower cost of finance, long term structural incentives would still be needed to ensure sufficient uptake. Council tax or stamp duty could be used to send a signal to consumers and the market on the direction of travel, and both could be applied in a fiscally neutral way to HMT. Regulation could also be used, in particular Consequential Improvements, which government itself has estimated would lead to an additional 2.2 million Green Deals being taken up.

Stakeholder engagement: There needs to be a better on-going dialogue between government and those trying to deliver the Green Deal on the ground, in order to overcome obstacles, reduce unnecessary complexity, identify future issues and learn lessons. At the very least this should take place through a high level industry advisory board co-chaired by a minister and a senior industry figure. It could also involve a more operational body, or ‘hub’, which government has previously expressed support for.

Long-term certainty and political consensus: There is an increasing sense that the Green Deal, and indeed energy bills more generally, are being used as a political football, which is not good for confidence in the market. These challenges will affect any party, or parties, of government and very bold decisions will be required. We believe there needs to be a new consensus forged between the main parties around retrofit, to depoliticise what is ultimately a long-term challenge that it is in the nation’s interest to successfully address.

Yours sincerely,

  • Paul King - Chief executive, UK Green Building Council
  • James Cameron - Chairman, Climate Change Capital
  • Mark Clare - Group chief executive of Barratt Developments Plc
  • John Frankiewicz - CEO, Willmott Dixon Capital Works
  • Peter Hindle - general delegate, UK, Ireland and South Africa, Saint Gobain
  • Ian Marchant - CEO, SSE Plc
  • Gene Murtagh - CEO, Kingspan Group Plc
  • John Sinfield - Chief Executive, Knauf Insulation
  • Russell Smith - Managing director, Parity Projects & acting chairman of RetrofitWorks
  • Nigel Taylor - Chief operating officer, Services, Carillion Plc
  • Peter Walls - CEO, Gentoo

NO! It’s not, is the simple answer.

The number of homes installing cavity wall insulation has crashed by 97% since the government's flagship energy–efficiency scheme was introduced, new figures have revealed. Previous energy-efficiency schemes meant cavity wall insulation – one of the cheapest ways of cutting energy bills and climate-warming carbon emissions, was heavily subsidised or free. But under the Green Deal, which aims to upgrade the efficiency of 14m homes, households have to take out a loan to pay for the measure.

Figures from the Cavity Insulation Guarantee Agency, which monitors the issue of installations and guarantees, show that only 1,138 installations were completed in April 2013, down from 49,650 in April 2012. The government's own impact assessment predicted in January 2012 that cavity wall insulations would collapse by 67%, but the reality has far outstripped this estimate. Government data shows that 1.4m cavity wall insulations are needed to meet its carbon targets.

This crash shows a "desperate need for financial stimuli for the Green Deal".

A spokesman for the Department of Energy and Climate Change said: "The Green Deal is an ambitious, long-term programme designed to deliver home improvement in Great Britain on an unprecedented scale." He noted that a cashback scheme currently offers £250 for cavity wall insulation, although this will not cover the total cost. "Additional help for this type of work may also be available for people in hard to treat properties, and those on benefits or low income," he added.

Luciana Berger, the shadow minister for climate change, said: "This staggering collapse in the number of energy-efficiency installations is a disaster for our economy and a body blow for hundreds of small businesses across the country. This is all the more damaging when there are at least 5.8m homes in the UK that still need cavity wall insulation, according to the government's own estimates."

The government's impact assessment also predicted a drop of 93% in loft insulations, the most cost effective energy-efficiency measure of all!

- Mark Jenkins

With more and more news concerning the Green Deal emerging every day, we thought it would be a good idea to provide a glossary of some of the terms and acronyms that pop up regularly in these articles.

Combined Heat & Power (CHP): Energy generation where both heat and power is collected for use, providing a much more efficient use of resources.

Department for Communities & Local Government (DCLG): The UK Government department responsible for community and local Government affairs. Their roles include overseeing policy areas related to planning and building.

Department of Energy & Climate Change (DECC): The main Government body responsible for the Green Deal. They are responsible for reducing climate change by managing the country's energy consumption and carbon footprint.

Display Energy Certificate (DEC): A certificate displaying the energy usage of a building. By law, these much be on display in all public buildings across England and Wales.

Domestic Energy Assessor (DEA):  Person accredited by an EPBD Accreditation Scheme to produce an Energy Performance Certificate for domestic properties in England and Wales.

Energy Act 2011: The bill of Parliament that originally set up the framework for the Green Deal scheme.

Energy Company Obligation (ECO): A measure to ensure energy companies pay greater focus on improving energy-efficiency in lower income and vulnerable homes by providing funding. These dwellings inparticularly have not benefitted from similar measures in the past.

Feed-in Tariff (FIT): A government incentive scheme offering payments to households producing their own electricity. This could be various renewable methods, including solar panels and wind turbines. 

Green Deal Assessor Organisation (GDAO):  The organisation that manages the delivery of Green Deal assessments by qualified advisors, taking responsibility for meeting the requirements of the Green Deal Code of Practice and all related standards.

Green Deal Advisor (GDA):  An energy assessor who is qualified to undertake Green Deal assessments, if working for a Green Deal Assessor Organisation.

Green Deal Advisory Report (GDAR):  The report issued by an advisor that provides the outputs from the Green Deal assessment.

Green Deal Installer (GDI): Fully authorised installers that are able to install energy efficient improvements using the Green Deal finance mechanism and mark of approval.

Microgeneration Certification Scheme (MCS): A scheme developed by the DECC to ensure products meet a certain standard in cutting down Britain's carbon footprint.

Renewable Heat Incentive (RHI): The Government's financial incentive relating to renewable heating methods. This includes heat pumps, solar thermal, biofuels and energy from waste.

Renewable Heat Premium Payment (RHPP):  A Government incentive scheme that helps householders to buy renewable heating technologies such as solar thermal panels, heat pumps and biomass boilers.

Following the ECA's warning that the Green Deal was at risk of "sleepwalking into obscurity", two new websites have been launched in an attempt to provide more information to homeowners and businesses alike on the Government's energy saving scheme.

Green Deal Directory is a database of both assessors and installers across the country, which users can search within a designated radius of their postcode or town. Meanwhile Green Deal Certified is offering a fast track approach to accreditation, providing would-be installers/assessors with a faster way of completing the necessary paperwork for official approval. By speeding up the process to offer energy saving services, this should give smaller businesses a much needed boost while also allowing more people access to these services.

Thomas Farquhar, sales manager of Green Deal Certified, said: "It was clear that the average potential supplier of Green Deal services simply found the accreditation process far too time consuming. They are busy people. Therefore, our service takes away the hassle and time problems and in effect allows these companies to take an 'express' path to accreditation."

While effort is finally being made to push the Green Deal into the public eye, are these measures coming too late? Yesterday Enact Energy Renewables, one of the first Green Deal providers, announced that it is in administration. Christopher Norman of Begbies Traynor business restructuring and insolvency advisors, who have been appointed as administrator, said: "The company has retained some of its employees to assist the administrators in conducting an orderly winding down of the company’s affairs. “We will now attempt to source a purchaser for some or all of the company’s business undertaking and assets."

Enact had recently signed a deal with the Residential Landlords Association to provide Green Deal upgrade work, with the target of doing 10,000 properties over the next five years valuing the contract at £100 million.

Publicity has always been an issue when it comes to the Green Deal - how can people be expected to take advantage of it when they aren't fully aware it even exists? The Green Deal Directory "About Us" page states that "The MCS & Green Deal Directory is advertised extensively on Google, Yahoo, MSN and through green publications & blogs. The MCS Accredited Installer Directory is also advertised in leading printed publications such as Grand Designs Magazine, Real Homes, Self Build & Design Magazine and Home Building & Renovating Magazine, and at world class exhibitions such as Ecobuild." However surely the people reading these are the ones already aware of the Green Deal?

The project is off to a good start, with official figures from the DECC showing the take up reached record numbers in March with almost 8,000 assessments completed and £68.9 million worth of contracts let through the eco brokerage scheme, but there's still a long way to go to meet the Governments proposed targets. Will these new websites make that much of a difference? Only time will tell.

The Green Deal is in danger of “sleepwalking into obscurity”, warns the ECA.

In response to the Energy and Climate Change Committee’s report into the Green Deal, the ECA has said that the findings should be a stark warning for the Government.

The ECA said, “The Energy and Climate Change Committee’s report into the Green Deal issued on 22nd May is a wake-up call to Government, which must keep on top of Green Deal performance if it is to prevent its flagship policy from sleepwalking into obscurity.”

Now the Green Deal is live, the Government must be quick to react to what is happening on the ground, and make changes if success is in doubt. Considering the PV FITs fiasco was worsened by the Department of Energy & Climate Change (DECC) relying on outdated figures on solar installations, the DECC should be accessing real-time information on the Green Deal, right now.

Millions of homes and businesses could benefit from the Green Deal, but at the current rate of assessments it will take around 100 years to get round to them. The first figures on actual Green Deal installation work, which come out in June, will be crucial.

Depending on what these figures say, the DECC may need to be ready with a Plan B. That should include reducing interest rates, which are widely seen as uncompetitive. Even simple measures like making the early adopter loans more obvious to consumers could help.

Awareness of the Green Deal financial incentives is very sketchy; publicity of what people need to do to benefit from the scheme is non-existent. How can the ‘common man’ (or woman) take advantage of the scheme when they are not being provided with any information?

The government call this a "Flagship incentive" - I would call it propaganda.

- Mark Jenkins

Get in touch to learn more about our training courses!

First Name *
Surname *
Telephone Number *
E-mail address *
Ask A Question *
 
Security Character Security Character Security Character Security Character Security Character Security Character
Enter Letters (No Spaces) *