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Department of Energy and Climate Change removes cap on Green Deal household cashback

The government has confirmed that the proposed cap of £1,000 on cashback for Green Deal measures has been lifted.

Today sees the launch of the Green Deal cashback programme, backed up by a £125m pot, ahead of the Green Deal coming into force on January 28th.

Previously, the Department of Energy and Climate Change had indicated that a £1,000 cap on cashback per household would be in place.

A DECC spokesman told CN: “If someone was going to have enough work to qualify for more than £1,000, and still qualified under the Green Deal, we saw no reason for them not to have that.”

Leading trade association figures expressed relief that the cap would not be instated.

The Green Deal is the government’s flagship environmental programme. It aims to enable homes and businesses to undertake energy efficiency improvements with the costs repaid through energy bill savings.

To qualify for cashback, householders and landlords must have a Green Deal assessment, agree quotes from a Green Deal Provider, apply for vouchers and complete works within the specified period.

The current rates are subject to change after the first £40m of the £125m fund is exhausted.

Climate change minister Greg Barker last week said there had been a “sea change” in the government’s ambition for and delivery of the Green Deal.

In December CN reported that DECC had managed to secure a £3m marketing fund for the Green Deal, despite earlier attempts by the government to play down its role in marketing the scheme.

Mr Barker added that tradesmen themselves were “the most important messengers” for the scheme, which aims to improve Britain’s “leaky, inefficient” Housing stock.

He also pledged that “planning will not be a problem” for solid wall installation, which he anticipates as being the most active Green Deal market, and that “there will be a media campaign over the launch.”

Mr Barker said the Green Deal would make the UK the “most exciting place in Europe” to develop new efficiency products, and was already acting as a pull on innovation.

The DECC team also confirmed that there would be no cashback for solar photo-voltaic installations already covered by the feed-in tariff scheme.

“We don’t want to be double-subsidising things. That wouldn’t be a good use of taxpayer money”, said David Thomas, deputy director of Green Deal demand.

In response to media reports that up-front assessment fees would put off potential customers, DECC director Tracy Vegro said the amount of people doing free offers had been “underestimated”.

“Some people are charging – people will make different choices. It’s a market mechanism.”

Energy secretary Ed Davey said “The Green Deal will be a great offer for people to insulate their homes from the cold, and their wallets from rising energy prices. With cashback too, energy saving has never been so attractive.”

“This also sends a clear message to the industry that the Green Deal is coming. Green Deal Providers and businesses in the supply chain need to start gearing up to take full advantage of what promises to be an exciting new market.”

Energy-saving measure/cashback level:

  • Loft insulation (including top-up) £100
  • Cavity wall insulation £250
  • Solid wall insulation £650 (a minimum of 50 per cent of external walls must be insulated to qualify for a cashback)
  • Flat roof insulation £390
  • Room in roof insulation £220
  • Floor insulation £150
  • Hot water cylinder insulation (top up) £10 (cannot be claimed at same time as boiler replacement)
  • Draught proofing £50
  • Heating controls (roomstat and/or programmer & time/temperature zone controls) £70
  • Condensing oil boiler from non-condensing oil heating or other £310
  • Upgrade boiler to condensing gas boiler from non-condensing boiler or other £270
  • Flue gas heat recovery (condensing combi boiler) only alongside replacement boiler £90
  • New or replacement storage heaters £150
  • Replacement warm-air unit £60
  • Waste water heat recovery systems £60
  • Double/triple glazing (old single to A) £20 per sq m up to a maximum of £320
  • Secondary glazing £15 per sq m up to a maximum of £230
  • High-performance replacement doors £40

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