Charles Phillips

The Green Deal

Transcript

1. Charles Phillips, Deputy Director, Department of Energy & Climate Change (DECC)
2. The Green Deal February 2013
3. •With increasing world energy prices, market volatility and rising energy imports, energy efficiency never been more important. •The UK has some of the most inefficient property stock in the EU: UK buildings = 1/3 total emissions •Getting energy efficiency right as a nation means significant energy savings while making everyone’s homes and properties cheaper to run – and more comfortable •As it’s the cheapest way of cutting carbon – it must be at the heart of what we do… Context – Energy efficiency matters
4. •Demand for energy efficiency measures historically is low •Barriers include • Government schemes to date have no consumer “pull” • High costs involved • Length of time it takes to feel the benefits. The Green Deal lets you pay for some or all of the cost of energy-saving property improvements, like insulation, over time through savings on your energy bills. The Challenge
5. What’s eligible? Loft insulation Cavity wall insulation Solid wall insulation Draught proofing Heating Creating energy Windows External doors • 45 different improvements can be paid for in part or full • Covers both residential and non-residential buildings
6. How does it work? Assessment Recommendations Quotes Installation Benefits Customer enjoys the benefits and pays the Provider over time through savings recommendations on what customers need Assessor gives impartial Provider arranges quotes to customer, provides finance and arranges for installation Installer installs improvements
7. Key Feature 1: Trust • Assessors, Providers, Installers must be accredited – Quality Mark to prove it • Comprehensive advice so customers consider all options – no pressure selling of one measure • Standardised advice to make it easier to shop around • Cooling off periods, protection against cold calling etc. • Insurance-backed guarantees in case of faulty advice or installation • Single point of redress: the Provider • Ombudsman to handle unresolved complaints
8. Key Feature 2: Finance • Customers can pay for some or all of the cost through a Green Deal Plan, collected automatically as part of their electricity bill. • Costs will vary from Provider to Provider – customers should shop around. • Maximum amount customers can borrow, including interest, is determined by how much energy they are expected to save. Once the plan is agreed, payments are fixed. • And payments are foxed to the property (meter) – not the individual. Not a mortgage or a personal loan - if a customer moves out they stop paying. • Customers can still change their electricity supplier.
9. The Golden Rule Green Deal repayment – illustrative only
10. Support from Government • Helping customers find out about the Green Deal: • gov.uk/greendeal – including the ability to find an assessment in your area • Energy Saving Advice Service: 0300 123 1234 • “Quick guides” which any business can give out • £22M Pioneer Places and Core Cities funding awarded for activity between now and March covering all 8 Core Cities and 150 English Local Authorities • £3M consumer advertising and awareness campaign January to April • £1.3BN Energy Company Obligation (“ECO” – explained next) • £125M Cashback Scheme in England and Wales (explained next) – there is a different scheme in Scotland
11. Green Deal and ECO Green Deal: demand-led, market driven. Measures that meet the Golden Rule GREEN DEAL ECO (~£1.3bn pa) Carbon Saving obligation (~£760m pa) packages of measures that include solid wall or hard to treat cavity insulation Carbon Saving Communities obligation (~£190m pa) targeted at insulation measures in low income areas Affordable Warmth obligation (~£350m pa) heating and insulation targeted at the poorest and most vulnerable consumers,
12. Cashback Scheme • Packages could be worth over £1,000 – the more work done, the more a customer can get. • Limited offer while funds last. Rates guaranteed for the first £40M. £125M available in total. • Process is exactly like the Green Deal – Assessor, Provider and Installer all involved. • So, customers need to get an assessment to start the process. Full details and apply via gov.uk/greendeal Some of the main rates Loft insulation £100 Cavity wall insulation £250 Solid wall insulation £650 Condensing gas boiler £270 Condensing oil boiler £310 Single to A rated double glazing £20/m2 max £320
13. More information • Businesses wanting to find out about the Green Deal for the first time can find out more on the Green Deal Industry pages or contact the Green Deal Oversight & Registration Body www.greendealorb.co.uk/ or 0207 090 1031 • Consumers wanting general energy efficiency advice, including information about the Green Deal, should call the ESAS helpline on 0300 123 1234.