The Government has indicated that its flagship energy efficiency scheme, which will enable homeowners to upgrade their properties without incurring upfront costs, is not expected to become available until the end of 2012.
The Green Deal is a central plank of the Coalition Government’s green strategy and aims to encourage mass adoption of
energy efficiency measures across UK homes. It will introduce a '
pay as you save' scheme that means energy efficiency work could be repaid through a charge on a home’s energy meter offset by the savings made on fuel bills.
In a statement issued yesterday, the Department of Energy and Climate Change (DECC) said the Green Deal "is expected to be available in late 2012".
The Government has said little officially since taking office about timelines for introducing the Green Deal and some reports have suggested that it could start as early as next year.
One reason for the delay could be the sheer scale of the roll out of such a scheme, which is expected to involve high street retailers and supermarkets and will require energy audits to be completed in hundreds and thousands of homes up and down the country. Banks are also expected to get involved, providing financing packages to homeowners.
Under the Climate Change Act, the Government has to reduce its greenhouse gas emissions by 34 per cent on 1990 levels by 2020 and 80 per cent by 2050. To meet these targets, between 400,000 and 1.8 million homes a year will have to be upgraded between now and 2050 at an estimated cost of between £5 billion and £15 billion a year.
CERT extension
Yesterday, Energy Secretary Chris Huhne announced the extension of the Carbon Emissions Reduction Target (CERT), from March 2011 until December 2012 putting greater demands on energy suppliers to insulate homes under the scheme.
The CERT, which came into effect in April 2008, obliges electricity and gas suppliers in the UK to help reduce
CO2 emissions from homes.
The Government said the changes to CERT will mean some 3.5 million more homes across the UK should benefit from insulation. Under the scheme, 2.5 million homes have so far had insulation installed.
"Our plans will give a huge boost to the insulation industry during the economic recovery as we pave the way for the start of the Green Deal," said Huhne "This is the beginning of a massive and urgent increase in home energy insulation for the nation.
"We are demanding that energy companies work harder to make homes warmer, more environmentally friendly and cheaper to run, especially for those who need it most."
DECC said some homes in the UK could save around £550 per year, by installing insulation measures.
Under the newly restructured CERT, 80 per cent of energy suppliers’ work will now have to be met through professionally installed and DIY work on loft, cavity and solid wall insulation, compared to just 60 per cent before.
Energy companies will now be stopped from promoting compact fluorescent lamps in order to prioritise insulation, DECC confirmed.
The department said it would also consult this summer on whether to retain he subsidy for low carbon gadgets like eco-kettles, shower regulators and high efficiency appliances in place of even more homes being insulated.
Energy UK, which represents energy suppliers, said it welcomed the changes to the CERT, but requested to know the timetable for meeting the new targets.
"Energy companies are wholly committed to the national effort to improve energy efficiency in the home and to helping people save energy, save money as well as tackling climate change," said Christine McGourty, director of Energy UK.
"Energy suppliers will now be working closely with Government and other stakeholders to ensure they meet the targets laid out today. We now await further details on the extension of the Carbon Emissions Reduction Target measures, including the exact timetable for meeting these new targets."