New green building regulations to drive demand for Green Deal

Under the proposals, existing homes that undertake building works such as extensions, loft and garage extensions could be required to invest in energy efficiency improvements from October 2012 – financed through the Green Deal. 

The same requirement would come into effect for non-domestic buildings from April 2014. 

Replacement of a domestic boiler or the replacement of multiple domestic windows could also trigger a requirement to undertake energy efficiency improvements through the Green Deal from April 2014, the Government said.

"The DCLG (Department for Communities and Local Government) estimates there are 2000 new extensions every year, 1.4 million boiler replacements and one million windows replaced. This could be significant demand driver [for the Green Deal] if it goes ahead," a spokesperson for the Department of Energy and Climate Change (DECC) said.

Tighter green regulations for new buildings
After much consulting with the construction industry, the Government has also set out how it would like to see move towards zero carbon standards from 2016 for new buildings. 

The proposed changes are complex, but would be introduced from 2013 and would tighten the CO2 targets for new buildings and introduce a specific energy efficiency target for new homes. For homes, this could mean preferred standards being met through improvements to the building fabric, such as walls and windows. The changes could see new houses and apartment blocks meeting an aggregate C02 reduction on 2010 targets of eight per cent from 2013. 

 
The Government’s preferred standards for new non-domestic buildings are more ambitious, and are likely to require renewable energy generation technologies, such as solar panels, being integrated into the building, as well as improvements to the building fabric. This could deliver a 20 per cent improvement on emissions, however. 

The GCLG said a key consideration in setting out the new building regulations was to reduce costs to businesses and homeowners. It claims the changes would save over £63 million a year for businesses by cutting red tape, while typically saving householders over £150 a year on energy bills compared with homes being built in May 2010.

"I'm delighted that these much-needed changes will provide guidance that is both fit for purpose and will cut carbon emissions, whilst also saving money for householders and businesses alike," Stunell said. 

Green Deal challenge
The Government aims to insulate 14 million homes by 2020 through the Green Deal. From the autumn, it will allow homeowners to take out loans to pay for energy efficiency measures with the guarantee that the savings on their energy bills will be greater than the loan repayments. At its peak the Government estimates it could support up to 250,000 jobs. However, the Government's own impact assessment, suggests several factors could severely limit the take-up of the scheme, including the hassle of having work undertaken. The Government hopes that by linking the Green Deal to the new Building Regulations could help overcome this challenge. 

"The Coalition is committed to being the greenest government ever, so improving the energy efficiency of our existing buildings through the Green Deal, and ensuring that all new homes are zero carbon by 2016 is a top priority," Stunell said. 

The Building Regulations consultation, which also looks at electrical safety in homes, among other issues, runs until April 27 2012. Responses to Green Deal proposals, however, need to be in by March 27 2012.