At this point it seems like the Green Deal just can't catch a break. After a humiliating first year it seemed like things were picking up for the Government's flagship energy scheme, but it will now be investigated by Parliament's spending watchdog after it was revealed that a staggering £36 million was spent on the scheme in the last 12 months.
A report from the Independent highlighted some of the spending the scheme made on promotion in February, including:
- Over £300,000 on "consumer demand, marketing and communications". This included a £100,000 rebranding exercise.
- £227,000 to a single consultancy company on Green Deal monitoring and evaluation.
- £20,000's worth of fees to part-time staff helping to run the scheme. This is in addition to the plan's full-time civil servants.
The criticism of the scheme came following the publication of the latest uptake figures for March, released by the DECC last week. While the figures show that there is a rise in households seeking assessments and installing energy-saving measures, the increase perhaps isn't quite enough to have justified this level of spending. The report said that currently 2000 households had plans in progress by the end of March, a slight step up from February's 1754.
Meanwhile 188,234 green assessements were lodged, which is a big increase over the previous month's 25,138. The increase of 163,096 marks the highest number logged and a rise of 40%.
As for Green Deal Plans, 2,000 household were shown to have plans 'in progress'. Five hundred and thirty two were 'new' (quote accepted), 473 were marked as 'pending' (Plan signed) and 995 were 'live' (all measures installed). Of the measures installed, boilers accounted for 30%, followed by photovoltaics (25%), solid wall insulation (17%) and loft insulation (9%).
A spokesperson for the DECC commented saying that the Green Deal was always a "long-term" project that would deliver results "over a long time frame", but that didn't stop detractors from speaking out. House of Commons Public Accounts Committee chairman Margaret Hodge had this to say:
"It is pathetic when you consider that the Coalition promised to be the greenest government ever yet is spending millions of pounds on a scheme that is not even performing at the margins. Sadly, the Green Deal is looking like it is extremely poor value for money."
Is the Green Deal beyond salvagable at this stage?
The Green Deal has just had its first birthday, and unfortunately it hasn't been such a great year for the UK Government's flagship energy efficiency programme.
Official figures have revealed that only 626 houses have live Green Deal plans in place, which is nowhere near the 10,000 figures minsters were expecting to be in place. As of December, only a total of 1,612 houses had made plans overall.
While assessments had never really been on the rise, they notably declined by 21% during December, which the government attributed to the Christmas holidays. However several leading green energy groups have spoken out against the Green Deal's poor statistics, stressing that the Government needs to try a lot hard in order for it to succeed.
The Federation of Master Builders has given the first year of the Green Deal a "report card" rating of two out of five, commenting that is has "not achieved the desired results in its first full year, with the majority of SME installers and home owners failing to engage". Chief Executive Brian Berry called the financial package "unattractive to most consumers". He also went on to say how the programme simply doesn't stack up against other high-street money saving alternatives such as loans and credit cards available at more competitive rates. His suggestions to improve the Green Deal were:
"The single most effective measure to kick-start demand would be to reduce the rate of VAT from 20% to 5% on all domestic repair and maintenance work, including energy-efficiency improvements. This would be a real incentive to home owners across the board to think about getting a professional tradesperson in to quote on a variety of repair and maintenance projects."
Meanwhile the UK Green Building Council also had things to say about the figures, calling it a "a wake-up call to the Government" that it is not delivering. Chief Excutive Paul King suggested that the Government must "recognise energy efficiency as a national infrastructure priority and be prepared to delve into its purse to make its flagship policy more appealing through stronger incentives and more attractive finance options"
But despite its failings, the Government have announced that they plan to stick by the Green Deal, and believe that although its hard a slow start (to put it lightly) 2014 will definitely be the year it takes off. Climate Change minister Greg Barker "acknowledged" that things hadn't developed the way the government had anticipated at a conference yesterday, he still though its first year had been an "encouraging start".
He also commented that the supply chain was now in place, with more than 125 Green Deal providers at the ready along with 2900 individual advisers and 2300 organistations officially approved to carry out installations. Procedures are also set to be simplified by the newly established Green Deal Working Group, with further alterations and improvements to be announced over the coming weeks.
So will 2014 fare better for the Green Deal? It's too early to say, but if these numbers are anything to go by then it doesn't look like it can do much worse.
It's been a long time coming, but at the end of last week the Department of Energy & Climate Change (DECC) finally announced the details for the domestic Renewable Heat Incentive, with the figures expected to provide a much needed boost to the UK's renewable energy industry.
The RHI will allow householders to be paid hundreds of pounds a year for any energy generated by renewable sources such as solar thermal panels, biomass boilers and heat pumps. By persuading people to install and switch over to these methods, it is believed Britain will successfully be able to meet renewable targets and cut down the country's carbon footprint, as well as save householders money on energy bills.
The tariff levels have been set at:
- 7.3p/kWh for air source heat pumps
- 12.2p/kWh for biomass boilers
- 18.8p/kWh for ground source heat pumps
- At least 19.2 p/kWh for solar thermal
Energy & Climate Change Minister Greg Barker said: "The Coalition is committed to helping hardworking families with the cost of living. Investing for the long term in new renewable heat technologies will mean cleaner energy and cheaper bills. So this package of measures is a big step forward in our drive to get innovative renewable heating kit in our homes.
"Householders can now invest in a range of exciting heating technologies knowing how much the tariff will be for different renewable heat technologies and benefit from the clean green heat produced. We are also sending a clear signal to industry that the Coalition is 110% committed to boosting and sustaining growth in this sector"
The scheme will be made available to homeowners, private and social landlords, third party owners of heating systems, people who build their own homes and anyone who has installed a renewable heat system since 15th July 2009. It currently supports air to water heat pumps, biomass only boilers and biomass pellet stoves with back boilers, ground and water source heat pumps, flat plate and evacuated tube solar thermal panels.
Applicants must complete a Green Deal Assessment before submitting their application and ensure they have met minimum loft (250mm) and cavity wall insulation requirements, where appropriate. All installations and installers must be MCS certified (or certified by an equivalent scheme). MCS certified installers are currently required to be members of the Renewable Energy Consumer Code, which is backed by the Trading Standards Institute.
The DECC is currently finalising the details of the expansion of the non-domestic RHI scheme and will confirm what comes next in Autumn alongside the outcome of the tariff review. The DECC's aim to introduce these changes from Spring 2014 onwards remains unchanged.
Full story/more information:
Heating, Ventilation & Plumbing Magazine
The Government are now offering a total of £19 million of funding towards coming up with new methods of energy efficiency and reducing the country's carbon footprint. And if you're an entrepreneur with some new and innovative ideas in mind, they're offering a share of that money to you!
This funding is the second phase of the Energy Entrepreneurs Fund, which since autumn 2012 has allocated £16 million toward the introduction of new products in the renewables sector. Previous examples have included energy/heat storage, tidal turbine testing, a thermally-insulating window and the "Eco power shower".
Energy secretary Edward Davey has said: "We’re on the side of innovative businesses and individuals with drive, passion, ideas and entrepreneurial spirit. This funding will get ideas off the ground and into the market, create new green jobs, and help the UK get ahead in the innovation global race.
"An ambitious and driven small business sector can steer the economic recovery in the right direction. So I want to see Britain’s brightest and best SMEs sending in their applications."
The scheme will be seeking the best ideas from both the public and private sectors, aiming to assist small and medium business enterprises. Subject to the demand and quality of applications, the DECC expects to open Calls for projects every four to six months from June 2013 until the full funding has been allocated. During the application process, applicants will be expected to demonstrate a robust evidence based case for funding, that will include but not be limited to:
- the potential impact of the innovation on 2020 and/or 2050 low carbon targets or security of supply
- the technical viability of their innovation and coherent development plan that will commercially progress the innovation; value for money
- the size and nature of the business opportunity.
The deadline for the first call for applications is the 12th July. Interested applicants will need to register their contact details HERE
before the 5th July.
The Government has sparked more frustration from industry members as it announced yet another delay to the start of the long-awaited Renewable Heat Incentive (RHI).
The scheme, which was designed to encourage renewable heating systems to be installed in domestic properties and offer money towards those who have fitted renewable heating products, was meant to launch this Autumn but has now been pushed back until Spring 2014.
Greg Barker, the Energy and Climate Change Minister, said: "The RHI, which has been available for non-domestic investors for over a year, is a key part of our approach to cutting carbon and driving forward the move to more sustainable low carbon heating alternatives."
"We remain committed to introducing an incentive scheme for householders too, and have set out an updated timetable for its launch alongside new plans to extend our renewable heat voucher scheme in the meantime."
However this isn't enough for many leading industry members, who have vocally expressed their disappointment at the delay. Jim Moore, of leading heating and boiling manufacturers the Vaillant Group has said: "The Government now needs to deliver on its latest deadline to assist in stimulating increased uptake of renewables in the UK as has been demonstrated as effective in so many European markets."
Elsewhere, chief executive of the Micropower Council Dave Sowden has commented: "Taken with the delay in confirmed the next steps of the 'zero carbon homes' policy, the announcement is forcing the industry to question whether the Coalition is serious about promoting domestic renewable heat during this Parliament."
Coinciding with this announcement was also an action plan looking at the potential to cut emissions from heat across the whole of the UK economy. It focuses on a number of key actions in an attempt to spur on the move to low carbon heating alternatives and drive forward green growth. These include;
- A £9 million package to help local authorities get heat network schemes up and running in towns and cities across the country, with a new Heat Networks Delivery Unit to sit within the Department of Energy and Climate Change (DECC) providing expert advice.
- £1 million for Manchester, Leeds, Newcastle, Sheffield and Nottingham to help them develop heat networks.
- 100 green apprenticeships to be funded primarily for young people in small scale renewable technologies.
- Up to £250,000 for a new first-come-first-served voucher scheme for heating installers to get money off the cost of renewable heating kit installation training, with up for £500 or 75% of the cost of the training per person.
- Working with individual industrial sectors to design long-term pathways to cut carbon across UK industry.
Last week saw George Osborne announce his fourth annual Budget to the British public, and it didn't look good for green energy policy. The Chancellor's shunning of renewable energy methods in favour of "low cost energy sources" such as shale gas has sparked outrage from a number of environment-friendly movements, particularly the Green Party and Greenpeace.
Speaking on Twitter, Green Party MP Caroline Lucas noted that "not a single word" was made concerning renewable energy in the Budget. In a longer statement made for the party's website, she went on further to say:
"With the UK's green economy now worth over £120bn - 9% of GDP - providing nearly a million jobs and generating a third of our most recent economic growth according to the CBI, it is completely inexplicable that George Osborne keeps pretending it doesn't exist."
In contrast to this, the Chancellor said that "creating a low-carbon economy should be done in a way that creates jobs - not costs them", yet didn't specify exactly how this should be achieved. Instead he continued to encourage the development of shale gas in the UK, stating that the government would set up a tax allowance for fracking companies developing gas fields. Shale gas is already notably controversial due to its extraction method - it involves pumping water, sand and chemicals into deep wells at high pressure, creating fissures in shale rock releasing the trapped gas.
This tax incentive also came under fire from Lucas, who considered it "outrageous that the Government is willing to gift more tax breaks to companies drilling for hard to reach shale". She continued by calling the whole thing a "costly gamble that risks keeping the UK addicted to polluting fossil fuels at precisely the time we should be leaving them in the ground". Greenpeace campaigner Lawrence Carter added: "Bungs to the gas industry make it harder for Britain to meet its climate targets and stifle the low-carbon sector, which provided one-third of all UK growth in 2011-12."
Despite all the evidence, it seems shocking that such a strong and fast-growing sector in Britain has been forgotten.