What if they gave a government program and nobody came?

Britain’s coalition government adopted the “Green Deal” as part of its scheme to reduce UK carbon emissions by 80% by 2050.  The plan provides loans of up to £10,000 to property owners for insulation and energy improvements with a goal of insulating and “greening” 14 million homes by 2020.  There are no up-front costs, rather the “deal” provides loans which are to be repaid over up to 25 years through higher utility rates.

Although the deal includes a “golden rule” which projects that property owners savings should eventually outweigh the costs, not one person has yet taken the deal (let alone 14 million).  Participation in the deal begins with a property assessment.  In a response to a written inquiry, Energy Minister Greg Barker conceded that “while we understand a number of appointments for the in-property assessments have been made, no assessments have yet been lodged on the register.”  Barker previously boasted the Green Deal would prove “the biggest home improvement programme since the Second World War.”

Not only property owners and tenants are wary of the Green Deal as few businesses have signed on to become Green Deal providers.

The Daily Telegraph proclaimed the Green Deal “in tatters” and reported that:

Brian Berry, the chief executive of the Federation of Master Builders, said: “Only one building company [that is a FMB member] has signed up to become an installer out of 10,000 because that demonstrates the lack of a market.”

The Government’s official register of Green Deal installers, providers and assessors – including non-FMB members – shows that just under 300 companies have signed up to be involved.

The Cameron – Clegg coalition government is learning the hard way that when left free to choose, it is difficult to entice people to accept higher rates in exchange for savings decades later — if savings materialize at all.

There are benefits to be gained through energy efficiency, but government programs are seldom the answer.  The government was unable to entice anyone into the program despite sweetening the deal with £125 million in public funds available in cashback to early participants.  We predict further sweeteners and advertising campaigns ahead.  If these fail, let’s hope the government doesn’t turn to coercive penalties, taxes or fees to drive the unwilling into the scheme.

Perhaps UK citizens would be more willing to accept a deal which includes rate increases if Britain’s alternative energy schemes weren’t already driving rates painfully higher.

In April,  Prime Minister Cameron told a meeting, “when I became prime minister I said I would aim to have the greenest government ever and this is exactly what we have.”  So far, UK householders aren’t following his lead, nor do voters seem prepared to reward his efforts, greenest or not.

No one has yet to take the “Green Deal” despite government projections of the following savings:

Category
Measure
Annual Saving*
Heating
Gas Condensing Boiler
£300
Oil Condensing Boiler
£300
Under Floor Heating
£80
Biomass Stove
£90
District Heating
£160
Hot Water System
£150
Fan Assisted Storage Heater
£100
Radiant Heating
£125
Solar Water Heating
£80
Warm Air Unit
£70
Under Floor Heating
£80
Cooling
Water Chiller
£150
Lighting
LED Lighting
£55
Power Generation
Air Source Heat Pump
£350
Ground Source heat Pump
£480
Water Source Heat Pump
£350
Micro Combined Heat & Power
£90
Solar PV
£165
Solar Thermal
£80
Transpired Solar Collector
£300
Biomass Boiler
£200
Micro Wind Generation
£110
Insulation
Cavity wall Insulation
£135
Solid Wall Insulation
£475
Loft Insulation
£175
Attic Room Insulation
£175
Flat Roof Insulation
£250
Insulation
Door Glazing
£180
Window Glazing
£165
Secondary Glazing
£16
Frame Ceiling
£20
Duct Insulation
£150
Pipe Insulation
£8
Under Floor Insulation
£60
Draft Proofing
£30
Energy Efficiency
Lighting Control
£6
Thermostat
£30
Other Heating Control
£100
Air Con Control
£120
Hot Water Control
£110
Efficient Shower
£100
Efficient Hot Water Tap
£15
Solar Shading
£150
Variable Speed Fan
£30
Heat Recovery
Flue Gas Heat Recovery
£6
Ventilation Heat Recovery
£85
Waste Water Heat Recovery
£135

*Estimated for average UK household
Source: Greendeal.co.uk