The earliest adopters of the Green Deal will be offered cashback incentives under new rates set out today, with £125 million set to be returned to homeowners.
Households who commission Green Deal work after 28 January 2013 and use the scheme to make improvements such as loft insulation, solid wall insulation and replacement windows will qualify for the incentive.
However, the cashback will be capped at 50 per cent of the applicant’s installation fees to avoid over-rewarding people who may be in receipt of support under the Energy Company Obligation.
Energy secretary Ed Davey said the cashback offer will “help get the Green Deal off to a flying start”.
The rates published today are guaranteed for the first £40m of the scheme but may be reduced after that, depending on the level of takeup.
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
The cashback offer also applies to private or social landlords who can benefit if they are the property improver and are paying the costs themselves.
From 28 January 2013, Green Deal providers will be able to offer the scheme to consumers.
However, the cashback levels are based on the energy efficiency savings attached to the qualifying measures.
For loft and cavity wall insulation, the cashback will be conditional on having such insulation installed at the same time as other measures if the Green Deal assessment recommends it.
To qualify, householders must:
- Have a Green Deal assessment carried out on the property;
- Get and agree quotes from a Green Deal provider;
- Apply for cashback voucher online, by phone or through GD providers;
- Receive voucher confirming the cashback;
- Complete works within a specified period;
- Redeem voucher, along with evidence of works completed, for cashback.
To avoid over-rewarding people who may be in receipt of support from ECO, the amount of cashback that can be received will be capped at 50 per cent of the applicant’s installation costs – so householders will have to contribute at least twice what they can receive in cashback.
- UK Green Building Council chief executive Paul King said: “We welcome the government’s announcements today, which will be helpful in raising the profile and demand for energy efficiency at a time when escalating energy prices are at the front of people’s minds.
“The cashback scheme will play a vital role in getting the Green Deal moving.
“But ultimately, if we are to reach 14m leaky homes and transform attitudes to energy efficiency in the housing market, we will need structural incentives.
“That’s why we’re working with our members and the wider industry to put forward proposals on ways that government can drive the market for home retrofit, without costing the earth.
“We need to see a clear commitment to this kind of longer-term strategy in the next Budget.”
- Federation of Master Builders chief executive Brian Berry said: “Little has so far been done to encourage people to make energy efficiency improvements to their homes outside of the Green Deal.
“Ministers should take heed – the Green Deal scheme will not appeal to everyone, with some preferring to finance the work upfront.
“The government must therefore also look at ways of encouraging these people to embark on energy efficiency improvements or else risk falling far short of its 80 per cent carbon reduction targets by 2050.
“December’s autumn statement would be an ideal opportunity for the chancellor to announce a range of fiscal incentives for energy efficiency measures.”