With popularity an issue throughout its lifespan, the Green Deal seemed to pique interest yesterday when it trended on Twitter, but unfortunately for the wrong reasons.
Supplying only 10,000 loans since the Green Deal scheme opened in 2013, the Department for Energy and Climate Change (DECC) has decided to cease any further government funding to the Green Deal Finance Company.
The former coalition government’s Green Deal was a scheme focussed on providing loans for energy saving measures such as new boilers and home insulation; this was with the end goal of increasing the energy efficiency of British households. The loan taken out would be paid through the electricity bill over a 25 year period.
Loans were provided by the Green Deal Finance Company, following an assessment on a home. One early issues was that many who took part in these assessments then went elsewhere to get the work carried out on their home, and ended up not taking the loan.
Nothing changes for current loan users
For those who are already repaying a Green Deal loan, it will continue to be dealt with and paid back as usual. The changes mean that no new applications will now be processed.
There will also be an end to the Green Deal Home Improvement Fund, started in 2014. Participants received cash to do work on their home to improve energy efficiency, with this proving more popular than the loan version of the scheme.
The fund will be axed as of 30th September, or when the remaining £4million funding runs out, whichever happens first.
Time for a new approach?
Energy Secretary Amber Rudd (who replaced the coalition’s Ed Davey), justified the end of the scheme as follows:
“We are on the side of hardworking families and businesses – which is why we cannot continue to fund the Green Deal.
“It’s now time for the building industry and consumer groups to work with us to make new policy and build a system that works.”
A review is to take place focusing on standards, consumer protection and enforcement of energy efficiency schemes, following questions over industry standards and the lack of popularity witnessed by the Green Deal.
The government and DECC will then consider future schemes that it has said would be better value for money and contribute toward’s the Conservative’s goal of insulating a million more homes over the next five years.