Amber Rudd, the newly appointed Secretary of State for Energy and Climate Change, announced on 23 July 2015 the end of the Green Deal project covering household energy efficiency improvements in England and Wales. There will be no further funding to the Green Deal Finance Company and there will be no future funding releases of the Green Deal Home Improvement Fund.
This brings to an end a seriously flawed initial scheme (Green Deal) and the more popular Green Deal Home Improvement Fund. Between them these schemes have been responsible for damaging the retro-fit insulation industry by creating a boom and bust situation.
It is highly surprising that a new plan for reducing energy consumption for existing homes has not been put in place at the same time as the announcement that Green Deal is being scrapped. Whilst no one can doubt that changes to the scheme were needed, Amber Rudd will be under some pressure to get a new scheme in place by the Autumn. Without some clear direction, the home insulation industry will be further damaged. They will already be suffering as all their marketing material featuring the Green Deal will have to be reprinted. There is no information on whether Green Deal registered installers will be included in any future scheme.
Based on previous schemes, if a new scheme was announced it is likely to include a requirement for an EPC (Energy Performance Certificate) that is less than two years old.
Below is a brief update on how those already in the schemes are affected.
Whist closed for new applicants the scheme will still continue as normal for those who have already taken out Green Deal plans. Bill payers in properties with Green Deal Plans will still need to repay the loans and this money will continue to be collected via their electricity bill.
Green Deal Home Improvement Fund
Existing applications and vouchers will not be affected. The latest release of funding will continue until 30 September 2015.