The Green Deal Energy Act has now become law which sets in stone the legal frame work for the Green Deal.
The launch of the Green Deal will completely revolutionize the way homes and businesses alike act on energy efficiency. In a time where all the major energy companies have announced price increases, the Green Deal will help consumers save money on the continuous rise in energy prices whilst also insulating their properties, which will create warmer properties at a lower cost.
DECC published the ‘Housing Energy Fact File’ on the 19th October 2011 highlighting that more than 50% of homes in Great Britain do not have sufficient insulation. The document also states that the energy used to heat and power homes in the UK is about 50% more than is used in the industry sector.
“A huge hurdle has been passed in bringing the Green Deal closer to making homes warmer and cheaper to run. The coalition is doing all it can to bear down on energy prices, but insulation will provide the long term help to manage bills. When it’s introduced, the Green Deal will be as easy as ABC by making work affordable, providing bespoke independent advice and choice in the market from well-known and trusted high street names.” Energy and Climate Change Secretary, Chris Huhne
“As well as helping people save money through home energy improvement , the Green Deal will be a massive business opportunity. It’s expected to attract capital investment of up to £15 billion in the residential sector alone by the end of this decade and at its peak, the Green Deal could support around 250,000 jobs.” Climate Change Minister, Greg Barker
The key elements to the Act will:
Remove the upfront cost of energy efficiency measures – With no upfront costs of loft, cavity and external wall insulation, making your home energy efficient will be a lot cheaper. Any energy saving improvements will be repaid over time through a charge on the home’s energy bill. The repayments will obey the “golden rule” whereby the charge is no more than the expected savings, meaning householders should save from day one.
Put consumer protection at the heart of the Green Deal – All Green Deal participants will need to carry a “quality mark” so customers know they can be trusted to do a good job.
Provide extra financial help for the most vulnerable and hardest to treat homes – Energy companies will be funding work like basic insulation and boiler upgrades as well as helping those living in homes where the cost of the work, like solid wall insulation, may not obey the “golden rule” without extra money to make it affordable.
Improve at least 682,000 privately rented homes – From April 2018 it will be unlawful to rent out a house or business premise which has less than an “E” energy efficiency rating.