Stephen Ryman stephen.ryman@decc.gsi.gov.uk
Green Deal Origins
•Through our ‘Green Deal’, we will encourage home energy efficiency improvements paid for by savings from energy bills. We will also take measures to improve energy efficiency in businesses and public sector buildings. The Coalition: our programme for government (May 2010)
Pay As You Save •Green Deal repayment – illustrative only
UK Carbon Emissions
• Proportion of UK emissions from the • buildings sector in 2009
•“Our homes are responsible for a quarter of the UK’s carbon emissions, because they leak heat like a sieve. We use more energy to heat our homes than Sweden, where it’s seven degrees colder in January. We might as well be standing outside burning 50 pound notes” •Chris Huhne, Secretary of State
What is the Green Deal? • The customer receives a package of energy efficiency measures at no up-front cost from a ‘Green Deal provider’. • The cost of the measures is paid back over the long term (for example, 25 years) through repayments made via energy bills. • Not be structured as a conventional loan: the customer will not be liable for the capital sum, only the repayments whilst they occupy the property. • The Green Deal will include owner-occupiers, the private and social rented sectors and the commercial sector.
The Green Deal Process (1)
• Remote advice Centre • In home advice and assessment • Customer can shop around 6
The Green Deal Process (2)
• No upfront cost • Repayments attached to energy meter 7
The Green Deal Process (3)
• Accredited installation • Green Deal Code • Quality mark 8
Green Deal: Repayment (4)
• Repayment up to 25 years
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The role of the Energy Company Obligation • There will be households for whom Green Deal finance is not suited • ECO to integrate with the Green Deal, with a focus on: o hard to treat properties; and o vulnerable and poor households
Energy Company Obligation •Green Deal •finance
• Measures fully meeting the Golden Rule • The next most costeffective measures, combination of ECO subsidy and GD finance
•ECO •Subsidy
• Measures providing affordable warmth to the vulnerable
Green Deal & Rental Properties
• No upfront costs to landlords, • Overcomes the ‘split incentive’ • Consent – who has to give consent and when • Keen to learn from previous housing retrofit models • What role could housing providers play? • Green Deal Providers? • Partnership with GD Provider • Communicator 12
Social Housing Case Study - Gentoo • Trialled
Pay As You Save (PAYS) scheme,
• Held the ‘Green Debate’ a poll of 600 customers, •New collaboration with British Gas will trial a Green Deal-style charge to pay for the energy efficiency retrofitting of around 650 social housing properties.
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Timetable Green Deal & ECO legislation DATE
MILESTONE
Winter 2011
Formal consultation on secondary legislation Ongoing engagement with stakeholders
Early 2012
Secondary legislation laid before Parliament
Spring 2012
Detailed industry guidance prepared
October 2012
Green Deal legal framework launched