黑洞社区

Ministers are considering measures to prevent the 拢125m Green Deal cashback incentive scheme from being used almost entirely for boiler replacements.

The Green Deal cashback scheme is designed to drive consumer take up of the Green Deal.

showed that just 拢1.6m of the government鈥檚 拢125m cashback scheme has now been paid out since the Green Deal launched in January, with virtually all of the 5,733 payments (97%) going towards funding boiler replacements, with just 2% for loft insulation and 1% for cavity wall insulation.

Now, in a letter to Green Deal providers, energy minister Greg Barker (pictured) has said the government is considering changes to the cashback scheme in order to increase its take up and ensure it is not only used for boiler replacements.

In the letter (attached right), Barker said he was 鈥渃onsidering whether further conditionality could and should be put in place to prevent the scheme mainly subsidising boiler installations鈥�.

Barker said the change was aimed at ensuring a 鈥渨ide range of measures鈥� are taken up through the Green Deal and that he wanted to see a 鈥渟ignificant increase in the number of customers applying for cashback and making installations as a result鈥�.

He said the Department of Energy and Climate Change (DECC) was also considering other changes to the 拢125m scheme, including allowing customers to apply for a cashback incentive without using a register Green Deal provider to arrange the work.

However, a Green Deal assessment would still be required and the work would have to be undertaken by a Green Deal registered installer.

In addition, the department is considering removing the requirement for an Insurance Backed Guarantee where householders are self-funding the installation.

A DECC spokesperson said the proposed changes would not render boiler replacements ineligible for cashback payments. 鈥淐ashback was intended to incentivise demand for the Green Deal as a whole, across the whole supply chain and across a wide range of measures,鈥� he said.

鈥淲hile no decisions have yet been made, it is right to consider potential options, including further requirements for cashback eligibility on boilers, which may help drive installation of other measures under the scheme.鈥�

John Sinfield, managing director of Knauf Insulation Northern Europe, said the changes were 鈥渢inkering鈥� and would not lead to a major increase in take up of the Green Deal.

He said: 鈥淲e are pleased to see that DECC is finally taking heed of industry calls to tackle the dismal levels of Green Deal take up, but we must be clear that tinkering with the scheme in this way falls far short of the major revisions needed to ensure its long term success.

鈥淪o while we support the introduction of multi-measure cashbacks and the focus on tackling the building fabric with loft and cavity wall insulation where possible, the issue still remains that there is a severe lack of significant demand drivers.

鈥淩eal incentives to act are required, such as reduced council tax rates for better performing properties or variable Stamp Duty for those that achieve a certain energy efficiency standard.鈥�

Improving incentives to take up the Green Deal is a key part of 黑洞社区鈥檚 Green for Growth campaign.