Green Deal product uptake low but could momentum be gathering?

Publication of the first quarterly Green Deal statistics has revealed that not a single household has so far benefitted from the Green Deal despite an encouraging number of assessments having taken place.

With software issues having dogged the first few months since the project went live, and the first wave of finance providers tentatively putting their plans in place, the low initial uptake is perhaps unsurprising. Government have held up the assessment figures as proof of an appetite for energy improvement measures, but the bad news for the government is that of the 38,259 assessments which have taken place, less than 1 percent of them have led to a Green Deal plan being requested (just 241 by 16 June) with only four plans having been confirmed, and none completed as yet.

So are BWF members set to benefit from the Green Deal at this early stage? The statistics imply that this may not be the case. The Green Deal cashback scheme (launched with the Green Deal but following less rigorous requirements) has seen 968 cashback vouchers being paid (up to 16 June) following installation of measures and a total value of £263,452.

However, the main measure where cashback payments have been made to date is for replacement boilers which cover 99 per cent of the payments. Of the 974 measures in total which had been installed, none of them related to window glazing.

The Energy Company Obligation (ECO), is being used by government to target lower income and vulnerable households where Green Deal is less likely to work. Of the 81,798 measures installed under ECO only 37 related to window glazing. Loft insulation and cavity wall insulation measures accounted for the bulk of the figures.

The picture coming from the Green Deal assessor reports was slightly more promising, with 1668 recommendations for window glazing and 980 for insulated doors having been made out of a total of 30,506 improvements recommended by the Green Deal assessors.

BWF Policy Executive Matt Mahony commented on the figures:

“It is easy to be cynical of the Green Deal – and a lot of people are – especially when you consider the amount of political will that has been invested in it and the fact that it is yet to benefit a single household 5 months after the scheme was launched.

“The low figures raise a number of questions such as whether government should be pulling more levers, such as reducing VAT to 5% on energy efficiency or refurbishment work, or using stamp duty to encourage energy efficiency, in order to support uptake of the Green Deal.

“The numbers also suggest that homeowners are not looking to install a range of measures, and we believe that more work needs to be done to convince customers of the product options available to them and the value of having a more comprehensive range of measures installed.

“But it remains too early to jump to conclusions as to whether the scheme can be successful. The number of plans is sure to start rising and if the project sparks an increase in retrofitting and helps the country meet its energy efficiency needs – whether through scheme financing, or simply building a market for installation – then it could still be a great success.”

DECC has published a revised Code of Practice for Green Deal providers, Assessors, Installers and Certification Bodies.

BWF members interested in benefitting from the Green Deal are reminded of the importance of fostering relationships with Green Deal installers and providers, who are likely to be selecting the products and brands used. For more information on how the Green Deal could work for you, log in and read our ‘easy guide to the Green Deal’.