Hundreds of pounds of cash back will be available to householders in England and Wales who make energy saving home improvements under the Green Deal from January 2013, the Government has announced today.
The Green Deal is the Government’s new initiative to transform the UK market for energy efficiency. It will let homes and businesses pay for energy efficiency improvements, like insulation, through expected savings on their energy bills. Households quick off the mark could get as much as £1,000 cash back.
From 28th January 2013, households who use the Green Deal to make improvements such as loft insulation, solid wall insulation and replacement windows will qualify. The Green Deal Cashback Scheme is a first-come, first-served offer, and the more work households have done, the more cash back they could receive.
Energy Secretary Edward Davey said:
“The Green Deal will provide unprecedented choice for consumers wanting to improve their homes and make them more energy efficient. This cash back offer will help get the Green Deal off to a flying start. It really is a great offer - the more work households have done, the more energy they stand to save and the more cash they receive.
“The Green Deal also presents a great opportunity for businesses of all sizes to take advantage of this transforming market - and now is a critical time. Whatever your business does in this sector, the Green Deal will have an impact. So I say to businesses large and small - gear up, get training and get ready to take advantage of the Green Deal.”
The simple, time-bound offer is limited to one per household, but can cover a package of improvements so long as the householder is contributing to installation costs and work done is overseen by an authorised Green Deal Provider. The key to getting the cash back is to have a Green Deal assessment carried out on your property, then install some or all of the improvements recommended.
A total of £125 million is up for grabs so hundreds of thousands of people could qualify. The rates published today are guaranteed for the first £40 million of the scheme. The best offers are available first, so people should act fast once the scheme opens in January because cash back rates may reduce after that.
Community minded households will have the option of donating some or all of their cash back to registered charities and Community Interest Companies who have signed up with the scheme administrator.
The cash back offer also applies to private or social landlords who can benefit if they are the property improver and are paying the costs themselves.
The Green Deal Cashback Scheme will benefit authorised installers and assessors who can use it to attract customers where they are working with a Green Deal Provider. They can find out more about the Green Deal on the Green Deal Oversight & Registration Body website or through one of the certification bodies.
From 28th January 2013, Green Deal Providers will be able to offer Green Deal plans to consumers and begin delivering energy efficiency and heating measures to households across Great Britain.
The Scottish Government has announced details of a separate home energy efficiency incentive scheme for Scotland.
Notes to editors
The rates are published on the DECC website. These rates are guaranteed from January 2013 until the first £40 million is spent. The Government wants as many people as possible to be able to benefit from the scheme so conditions may change subsequently.
- Cash back levels are based on the energy efficiency savings typically attached to the qualifying measures. Loft and cavity wall insulation is the simplest and most cost effective basis for an energy efficient home so the cash back will be conditional on having such insulation installed at the same time as other measures if the Green Deal assessment recommends it - the householder gains because the cash back grows.
- The worst off households and those in harder to treat properties will benefit from energy efficiency measures being installed for free, or at a significantly subsidised cost - primarily as a result of the Energy Company Obligation (ECO), a subsidy from energy suppliers towards the cost of improvements worth up to £1.3 billion and available to some households from early next year. To avoid over-rewarding people who may be in receipt of support from ECO, the amount of cash back that can be received will be capped at 50 per cent of the applicant’s installation costs - so householders will have to contribute at least twice what they can receive in cash back.
- Customers wanting to find out more about the Green Deal can call the Energy Saving Advice Service on 0300 123 1234.
- There will be additional caps on cash back payments made to landlords to ensure a fair distribution of the funds.
- Authorised installers and assessors can use the scheme to attract customers where they are working with a Green Deal Provider. They can find out more via the Green Deal Register.
- The Government is working with the Sector Skills Council to provide £3.5 million to train up to 2,000 Green Deal assessors and installers to help make sure there’s help and support for smaller businesses to train up the skilled people they need to take advantage of the Green Deal.