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Industry reacts to the end of Green Deal consultation period

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The Green Deal has the potential to provide a huge uplift for the building industry. With the consultation period now over, PBM collates the reaction from a number of industry professionals to the DECC’s proposals and the Government’s planned drive towards sustainable building.

Construction Products Association

John Tebbit, Industry Affairs Director

“We all know that Green Deal has the potential to be a real game changer, but Government must accept this is a long-term solution and not a quick fix opportunity. 

“It is essential that the Green Deal allows new companies and organisations into the market, such as distributors, builders, manufacturers and installers. This will avoid any one part of the supply chain enjoying a dominant position in energy efficiency work; it will bring greater competition and encourage diversity.

“There must also be a process for ensuring product and installation quality allows innovative products and solutions to be introduced to the market whilst ensuring performance. Products and systems that already meet British and European standards, or are certified to reputable third party schemes, must not face additional testing or registration costs.

“The Association welcomes the proposal for a cash back scheme for homeowners, based on the degree of improvement as measured by EPCs. However, in the longer term the government should base the level of stamp duty for the purchase of homes both on price and EPC rating. Such a system is already used with company car tax where both price and CO2 emissions set the taxable benefits and this has radically changed company car choice over a number of years.  There seems to be no reason why such a dual price and environmental performance based system, could not have the same impact on home purchases, albeit over a longer period of time.”

Plumb Center

Tim Pollard, Head of Sustainability

“With an estimated 20 million homes that could potentially benefit from Green Deal measures, no-one should underestimate the value of leveraging existing skillsets and communications channels if the scheme is to be successful.

“As far as boiler replacements are concerned, Plumb Center believes that timely access to a Green Deal Plan is crucial, as approximately 80% of these replacements are prompted by boiler breakdown, where restoring heating is the primary concern.

“In order to maximise the uptake of low carbon technologies as part of the Green Deal, other schemes such as the Renewable Heat Incentive (RHI) and Feed-in Tariffs will need to be effectively coordinated, giving end users a clear picture of the outlay and payback period as well as projected energy savings.”

Baxi

Simon Osbourne, Spokesperson for Baxi

“Green Deal will definitely tackle the more basic energy efficiency measures, such as controls and insulation, while we believe that the Renewable Heat Incentive (RHI and domestic RHI) will do more to support renewables in the long term.

“The inclusion of replacement boilers under Green Deal is promising and may stimulate the market, however the detail of how quickly a Green Deal Plan can be put in to place, when a customer is faced with a boiler breakdown in freezing conditions, could potentially undermine this measure. As a further step, we would like to see the addition of cylinder replacements as an approved measure, providing a more holistic treatment of the complete heating system.
“As far as accreditation under Green Deal, for both installers and products, there is a significant overlap with existing MCS schemes so it would seem that establishing parity would avoid unnecessary duplication. The idea of any extra financial burden for individual installers to be able to participate in the Green Deal is unacceptable.

“In the finalised proposal, the Government must provide a cohesive strategy for integrating Green Deal with domestic and commercial RHI and Feed-in Tariffs, to maximise uptake. While uncertainties remain, there is a risk that end users will put off installing renewables until they know exactly what financial returns they can expect to see and actual payback periods.

The UK Energy Research Centre

Dr. Nick Eyre, University of Oxford.

“We support the underlying idea behind the Green Deal – it’s a good idea to bring new sources of finance into low energy refurbishment of buildings and pay for the costs from reduced energy bills. But the detail of the proposals is very worrying – it will reduce rates of insulation and have a detrimental impact on the ability of the UK to meet its carbon targets. Subsidising energy supply, but not energy efficiency improvement makes no sense.”

The Confederation of British Industry

Rhian Kelly, CBI Director for Business Environment

“Without demand we haven’t got a Green Deal. Businesses are ready to work with the Government to excite and incentivise consumers, by emphasising the cost-saving as well as the carbon-saving benefits.

“The Green Deal has the potential to play a key part in the UK’s transition to a low-carbon economy. If successful, the Green Deal will be a win-win policy, delivering cost-effective emissions reductions and driving private-sector growth.”

“While the CBI supports a rigorous accreditation system for assessors, providers and installers, the Government must not allow the pendulum to swing too far towards costly regulation.

“This could lead to higher costs for the consumer, and we don’t want costs to start outweighing savings, as this would undermine the whole scheme.”

Climate Energy

Garry Worthington, Head of Green Deal

There are a number of challenges facing the Government if the Green Deal and Energy Company Obligation (ECO) are to deliver cost-effective emissions reductions and meet the carbon reduction targets which have been set.

“Climate Energy believes making the Green Deal as consumer-friendly as possible will be critical to its success, especially at a time when household budgets are tight.  It is also essential that all Green Deal schemes are cost-effectiveness so that properties can really benefit from the “Golden Rule.

“The current ECO proposals will also see subsidies for loft and cavity wall insulation come to an end for many, with the Government’s own predictions suggesting an annual drop in the number of cavity wall installations when the current subsidy regime finishes.  We believe that to maintain demand and support a smooth transition to the Green Deal loft and cavity wall insulation should be included within the carbon-saving element of ECO for a limited period of time.”

 

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