The UK Green Building Council and other construction industry leaders, including our parent company Saint-Gobain, published an open letter last month and urged the Government to make changes to the Green Deal to avoid failure.
The letter highlighted the enormous task ahead of retrofitting the majority of the UK’s 26 million homes….that’s an average of one home per minute between now and 2050!
On the other side, the industry big hitters (including Barratt Developments, Carillion & Kingspan Group to name a few) also acknowledged the massive opportunity that Green Deal brings to “reduce energy bills, improve health, provide jobs in the construction sector, and avoid additional costs of new generating capacity!”
Here is a rundown of some of the major issues addressed in the letter:
– The current rate of interest for Green Deal finance is in danger of acting as a disincentive.
– Even if Green Deal offered lower rate finance, there is still a need for long term structural incentives to encourage the public.
– There needs to be on going communication between the Government and those delivering Green Deal on the ground. This would help overcome obstacles, reduce unnecessary complexity, identify future issues and learn lessons
– Long term certainty and political consensus would boost consumer confidence.
The Energy & Climate Change Minister, Gregory Barker, has welcomed the majority of the suggestions. In terms of interest rates, Greg Barker did cite how the Green Deal Finance Company’s rate of 6.96% allows over 80% of consumers to access finance.
He went on to point out how DECC (Department of Energy and Climate Change) is working with the Oversight & Registration Body to form a new Green Deal Provider Forum. The purpose of this forum will be to look at ways the Government can better work with the industry to increase demand, remove barriers and ensure that all parties can work together to shape the future direction of policy.
To read Greg Barker’s full response click here.