Ministers have today confirmed the Green Deal will benefit from a cashback scheme to boost take-up.
Householders who are quick off the mark could be eligible for as much as £1000 cashback, if they opt for a full home retrofit using the Green Deal, the Government confirmed today. A total of £125 million is being made available and will operate on a first-come-first-served basis. The money is part of £200 million announced last November by the Treasury to encourage householders to sign up to the energy efficiency scheme. Today’s announcement is the first time details about the bonus scheme have been unveiled and was welcomed by companies looking to offer Green Deal products and services. Although the Green Deal launched on October 1, no big brands have yet signed up to become providers of the scheme and many Green Deal contractors have been waiting for the Government to get behind the national insulation programme with measures that will encourage take-up of the scheme.
"This cashback 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," Energy Secretary Ed Davey said as he unveiled details of the incentive scheme.
The Green Deal, will enable homeowners and businesses to access finance for loft and cavity wall insulation, lagging and other energy efficiency measures at no upfront cost. The Government said the Green Deal aims to kick start £14 billion of investment over the next decade in energy saving upgrades and could create at least 65,000 insulation and construction jobs by 2015.
Rates for cashback scheme
The Green Deal cashback scheme will apply to England and Wales and will launch from January 28 2013, alongside the Green Deal finance plans, which underpin the energy efficiency programme. For the first £40 million spent, the Government is guaranteeing that loft insulation will be eligible for £100 cashback, cavity wall insulation £250, floor insulation £150, condensing gas boiler upgrades £270, and solid wall insulation £650. A further 12 energy efficiency measures are also eligible for the limited cashback rates.
The cashback will only be available to householders who get a Green Deal assessment, have work arranged through a 'Green Deal Provider' and make a contribution to costs.
Industry reaction
Brian Smithers, director of leading electrical suppliers Rexel UK, welcomed the Green Deal cash incentive, saying it would create a much needed boost for the Green Deal marketplace. "A headline grabbing cash incentive is exactly what the Green Deal needs to raise awareness amongst consumers," he said.
Opportunities for businesses
Davey called on businesses of all sizes to get behind the Green Deal, saying now was "critical time" for companies to take advantage of its opportunities: "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."
In another move to kick-start the Green Deal, the Department of Energy and Climate Change (DECC) today announced a further £10 million would be spent on local Green Deal pioneer council projects in England. In September, DECC announced £12 million of Green Deal incentive money would go to seven cities across England. A spokesperson for DECC said further announcements would be made "over the next few months" on how the remaining funds from the £200 million to incentivise the Green Deal will be spent.