End of the Green Deal: what happens next?

On 23 July 2015, Amber Rudd the Secretary of State for Energy and Climate Change announced that the Green Deal would no longer receive funding. The Department of Energy and Climate Change (DECC) explained that the decision was made to end Green Deal funding after a low take up of the programme and concerns over standards. Since the closure was announced, many figures and leaders within the industry who had dealt with the scheme have expressed their thoughts on the matter and what they hope will come next.

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Reactions to the Green Deal closure and its replacement

Industry reactions to the end of Green Deal funding have been varied. Many people are pleased or indifferent to see it come to an end, citing ineffectiveness of the scheme as the reason, whilst others see it as a step back from improving the energy efficiency of homes in the UK. There have also been many comments on what should happen moving forward, including the below:

Mark Bayley, Chief Executive of the Green Deal Finance Company (GDFC)

“The most important thing at the moment is for us and the Department to reassure those who currently have Green Deal finance plans in place and those with approved applications, that today’s announcement does not change anything for them.
“We have taken this step to make sure we can meet all our expected liabilities and to have an orderly run-down of new business, while protecting existing plan holders and those whose applications are eligible and have been approved.”

Philip Sellwood, Chief Executive of the Energy Saving Trust Group

“We need to accept the reality of the situation and I, working with my colleagues and many stakeholders, will be focused on new solutions in the weeks and months ahead. We must now look to the future.”

Dave Sowden, Chief Executive of the Sustainable Energy Association

“The Sustainable Energy Association looks forward to engaging with the Government to deliver a sustainable, affordable and suitable energy efficiency policy framework.
“Policy should capitalise on the abilities of businesses that are able to deliver energy efficiency measures to domestic and non-domestic properties across the country.”

What will replace the Green Deal?

When addressing the closure of Green Deal funding, Secretary of State for Energy and Climate Change Amber Rudd stated that “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”. This statement is already being actioned with Roofing, Cladding and Insulation Magazine reporting that industry leaders met with the parliamentary Under Secretary of State for DECC, Lord Bourne, on July 28 regarding a new framework. The industry leaders were told that ‘new measures would soon be under development to provide a long term and stable policy in place of the Green Deal’ and were encouraged to put forward suggestions for the new policies. The government is aiming to have this framework developed in time for the spending review which will be published on 25 November 2015.

Are there any other energy saving improvement schemes still running?

Although the government’s actions towards creating a new framework are positive news, many installers and homeowners have been left wondering what will happen in the interim between now and the implementation of the new policies. DECC has suggested that homeowners looking to finance energy efficiency improvements should look to the Energy Company Obligation (ECO) scheme, which will continue running until March 2017.
For more information on the end of funding for the Green Deal and changes to other frameworks, visit our article Government cuts to schemes and subsidies 2015: what installers need to know.