The Department of Energy and Climate Change has proposed a £20m scheme to help local authorities kick-start delivery of the Green Deal.
Under the Green Deal Communities scheme, local authorities will identify whole streets that could benefit from the Green Deal and bid for a share of £20m to incentivise households to sign up for finance and make home improvements.
Energy and climate change minister Greg Barker said delivering the Green Deal requires a “street-by-street vision and a street-by-street plan”, but added that local authorities “know their areas best”.
“The coalition is committed to helping hard-pressed consumers and this £20m funding will help more families benefit from the Green Deal, making homes warmer and more efficient, and protecting consumers against rising energy bills,” Mr Barker said.
But UK Green Building Council director of policy and communication John Alker said the proposed funding would not be enough to encourage uptake of the Green Deal across the country.
Mr Alker said: “It’s encouraging to see government exploring other options to drive uptake of the Green Deal and the £20m Green Deal Communities scheme will help councils identify streets which are most in need of energy efficiency measures.
“However, this will not be enough on its own. Additional incentives must be used if the Green Deal is to reach millions instead of just hundreds of UK homes,” he added.
Earlier this month it was revealed that 36 Green Deals had been signed as of the end of June, but not a single Green Deal has yet been completed.
The government has also confirmed the establishment of a Green Deal Provider Forum to look at ways of supporting the Green Deal and energy efficiency in the retrofit sector.
It will be chaired by Kingfisher group chief executive Ian Cheshire and will include senior representatives from Green Deal providers and the retrofit industry, with support provided by the Green Deal Oversight and Registration Body.
Local authorities will be able to bid for Green Deal Communities funding until 31 December 2013, or until the funds are exhausted, to support whole streets and areas to take up finance or install energy-efficiency home improvements.
DECC has already provided £23m of funding for core cities and local authorities to kick-start the Green Deal.