Ahead of our roundtable on the Green Deal on 7 June, we’re going to be taking a closer look at the key measures that make up the proposal that Ministers are referring to as “the most comprehensive energy saving plan in the world”.
But before we begin, we must set out how the Green Deal will actually work. While some details remain somewhat sketchy, the overarching approach can be summarised as follows:
1. An energy survey will be carried out on individual homes. The necessary measures to increase energy efficiency will be evaluated and costings produced for mitigation measures.
2. Finance to deliver these improvements will be provided by a range of accredited providers. Loans will likely be in the region of up to £10,000 per household. Critically, the loan will be attached to the property and not the occupier or owner.
3. The work will be carried out, with the loan repaid through savings on the property’s energy bills. The government insists that there will still be enough cash left over for occupiers to experience reduced bills as well.
Both residential properties and commercial properties will be included within the Green Deal, with occupiers paying nothing up front for improvements.Through this process, the Government hopes to reduce or even eliminate the £2 – 3 billion they believe is wasted through energy inefficiency in the UK every year. Indeed, the UK has some of the oldest and least efficient buildings in Europe and it is estimated that they are responsible for 27% percent of the country’s greenhouse gas emissions.
But with 28 million homes in the UK, will these measures be sufficient to incentivise people to put energy efficiency high up their list of priorities? Will the scale of funding currently talked about by Government be sufficient to bring about the kind of change we need to see across the UK to contribute to overall carbon reduction commitments? And how can we bring together partners to finance and deliver these measures most effectively across administrative boundaries, in a way that makes fiscal and strategic sense?
We’ll be exploring these and other questions in the coming weeks ahead, so look out for more updates soon.