Reviewing the UK’s Green Deal

The following article on the Green Deal was provided by Joanna Nicholson.  Joanna is an energy professional turned writer who has a decade of experience in the energy efficiency and renewables sector. Having worked for the Energy Saving Trust and on a variety of community energy projects since 2001, she now works as a freelance writer and sustainability expert, supporting enterprises, start up companies and low carbon businesses across the UK.

The results to date are not encouraging but there are some encouraging signs.

Is the Green Deal working?

The Governments flagship energy efficiency policy, the Green Deal, was launched in June this year, but as the first quarter’s results come in, it is clear that progress is being made much more slowly than originally though.

Statistics released by DECC on the 19^th September suggest that only 12 small businesses or households have actually had any work done under the ‘Green Deal’ criteria, and that month on month the demand for Green Deal Assessments, the pre-qualifying survey of the building, has dropped.

In August DECC’s figures showed that 13,000 Green Deal Assessments were carried out, a figure which is 4% lower than July and 3% lower than June. Over the course of the programme so far, a total of more than 71,000 assessments have taken place, which although a good number is nothing like the original projections.

These early stage figures have come as a bit of a blow to the Government. With an average of 13,000 buildings entering Green Deal each month it would take around 160 years for Green Deal assessments to be carried out on every property in the UK, a fact that has somewhat taken the wind out of the sails of what could have been a highly transformative project.

What is the Green Deal?

The Green Deal is the government’s flagship policy to help increase energy efficiency in homes and small businesses around the UK. The scheme works by the building owner undertaking an assessment with a qualified advisor to see what energy saving measures would be suitable. If they wish to go ahead with any of the measures, they can take a low interest Green Deal loan which is paid back via their energy bills directly to their supplier.

For more information on how the Green Deal Works click here.

Why are Green Deal figures so low?

Of course, raw data does not tell the whole story, and behind the numbers the Green Deal is enjoying some real successes that have failed to come across in this initial reporting phase. Although only 12 buildings have gone ahead and had Green Deal measures installed, over 80% of the households and small business owners who have received a survey have said that they plan to install at least one energy saving measure.

Aside of the 12 completed orders, there were a total of 677 households who went through to the second stage of Green Deal, which is the point at which they begin gathering quotations for a specific installation. Of these, 293 have had quotes accepted on measures and a further 372 have pending installations.

Here are some other potential reasons the Green Deal seems to be missing its projected success:

• Complex measures: With complex work being undertaken such as solid wall insulation and renewable energy systems, the time from survey to installation can be much more protracted than with traditional insulation measures.
• Loan approval processes: With the additional task of being approved for a loan all part of the process, things are bound to take a bit longer to resolve.
• Green Deal has so far worked through the summer months, when energy efficiency is not such a priority for many.
• New schemes take a while for consumers to recognise.

Green Deal for the future

It is hoped that as the cooler weather arrives, more people will take up Green Deal assessments. A spokesperson from business gas and business electricity rates comparison service, Simply Business Energy, commented on the valuable opportunity small and medium businesses have to improve their efficiency,

“No matter how well or how badly the Green Deal has done so far, the potential for small and medium businesses UK wide to really make a change for the future is right here and now. Green Deal is a pioneering scheme, and new things often take time to gather momentum. For businesses looking to cut their business gas rates and reduce their expenditure on energy, there is no other scheme worldwide that offers them this type of support.”

Small and medium businesses are being encouraged to apply to the Green Deal for funding for renewables, heating solutions and insulation measures ahead of this winter in order to minimise their costs over the colder months.