The Department of Energy and Climate Change have announced a further £540 million will be made available over the next three years to boost energy efficiency. £450 million of the £540 million will be aimed at households and private landlords. Alongside this, the Green Deal is also being improved to make it more attractive for consumers and to remove unnecessary cost for companies.
Several proposals have been announced to streamline and improve Green Deal: DECC want to make it easier for businesses to enter this developing market and for consumers to act to make energy saving improvements to their properties.
Worth £150m each year for the three years from 2014-15, the new incentives will be designed to reward new rather than replacement energy efficiency improvements, dovetailing with the Green Deal to leverage private finance. Importantly, they will ensure that the impact of the changes proposed to ECO as a result of the Green Taxes review is carbon neutral.
- A stamp duty rebate worth at least £1,000 from Government to spend on important energy-saving measures – equivalent to half the stamp duty on the average house – and more for expensive measures like solid wall insulation – up to £4,000. All movers, not just those who have paid stamp duty, will be able to benefit, encouraging a whole-house approach and helping around 180,000 households over three years.
- Targeted investment for more energy efficient homes within the Private Rented Sector (PRS), designed to help landlords meet the minimum standard (EPC E rating) that will be required under the PRS Regulations from April 2018. We will also encourage landlords to bring their properties up to higher energy efficiency levels faster than the up-coming standards require.
- £90 million of the overall £540 million package will help improve the energy efficiency of public sector buildings, including schools and hospitals, where an additional £30m will be made available in each of the 3 years from 2014/15 building on the existing successful Public Sector loans programme (SALIX).
There has already been high demand for funds under DECC’s Green Deal Communities competition so a quadrupling of the money available to English local authorities this year to £80m to promote Green Deal on a street by street basis will be a great opportunity for the industry and for the energy efficiency of those communities.
Alongside the Green Deal cash back scheme, which stays open, it will incentivise the delivery of hard to treat cavity and solid wall insulation. And we will work actively with obligated energy companies to promote stronger integration of ECO and Green Deal finance so more households can improve their homes
Alongside this package of support for Green Deal, DECC have also published a set of improvements to the Green Deal – to make it simpler and quicker for householders to improve their homes as well as stripping out time and cost for industry, while ensuring that consumers remain properly protected and can rely on work done under the Green Deal Quality Mark.
Changes will be made in three broad areas:
- Making Green Deal more accessible to consumers through improved information and signposting;
- Making it easier for firms to operate in the market; and
- With the Green Deal Finance Company, making sure the Green Deal finance offer gives customers what they need.