Energy and Climate Change secretary Amber Rudd announced yesterday that due to low take-up and concerns about industry standards it would no longer fund the Green Deal in a move to protect taxpayers. She said that the Government would work with the building industry and consumer groups on a new value-for-money approach.
Giving a tentative welcome to the announcement, Heat Pump Association president Mike Nankivell said: “Under the previous administration, it had been decided that the Green Deal would be the main portal to the Renewable Heat Incentive. The HPA has consistently opposed the link between GD and RHI and specifically made representations to Amber Rudd. We recommended a disconnect between the Green Deal and the RHI as this had been identified as a significant impediment to the take up of renewable heating technologies in the domestic sector and, as such, we cautiously welcome this announcement.
The HPA is concerned, however, as to what, if anything, will replace it.
“It is not yet clear if this announcement will remove the need for a Green Deal Assessment to qualify for domestic RHI,” said Nankivel. “We are also concerned that pressures to reduce government spending could impact other schemes and incentives designed to improve home insulation and energy efficiency. Therefore we continue to have dialogue with DECC and the Ministers responsible to ensure that policies to stimulate the take up of renewable heating technologies, including heat pumps, are adequately supported.”
Yesterday’s announcement came as part of Government’s wider review of energy policies and confirms that the first priority is to get spending under control.
“It’s now time for the building industry and consumer groups to work with us to make new policy and build a system that works,” said Amber Rudd.
The Government says it has commissioned an independent review led by Peter Bonfield to look at standards, consumer protection and enforcement of energy efficiency schemes and ensure that the system properly supports and protects consumers.