Green Deal - Failure to Launch

The government’s flagship Green Deal scheme has "launched" today with just two approved providers. Insulation firm InstaFoam and Fibre and consultant Inteb Sustainability will take a lead on selling the scheme and organising the finance.  The number falls far short of the 50 plus providers expected to take up the offer when the Green Deal was proposed.

There is a lack of clarity on a number of ways in which the scheme will work including the interest rate finance under the scheme would attract combined with a lack of public knowledge of what the Green Deal is and what is actually on offer is expected to lead to limited demand.  Without demand from the public, companies are unlikely to invest the time and money required to achieve approved status.

The Green Deal aims to stimulate the market for energy efficiency retrofit work in buildings by providing low cost loans that are tied to the property where the energy efficiency measures are installed.  although the finance behind the scheme will not be available until 28 January 2013 the legislation underpinning it comes into force today with consumers now able to get an assessment to see if their home is suitable for the work.

Zoe Leader, energy efficiency policy advisor at the WWF, said: “There’s still too much unknown for any business in its right mind to put much investment into this. It’s not a good sign even if this [1 October launch date] is a soft launch.”

Leader added that the scheme would be “too little to late” to make a significant contribution to the government meeting its legal obligation to reduce carbon emissions by 80% by 2050.