Analysis into the now defunct Green Deal scheme-which served as the Government’s prime energy-saving programme-has revealed the cost of the initiative to the taxpayer.
The National Audit Office has concluded that each home that was improved under the scheme cost £17,000. As such, it has been concluded that the Green Deal did not offer value for money.
Failed expectations
As part of the scheme, householders were advised to take out loans to pay for energy-saving measures, such as loft and cavity wall insulation, or double-glazing. Many residential landlords were encouraged to take advantage of this scheme for their investment properties.
However, just 14,000 households took up the offer, which was well below expectations.
The Department of Energy and Climate Change spent £240m on the scheme, which ran between 2013-2015. The National Audit Office highlighted that a major flaw in the programme was that it was not tested with potential consumers before launching.
Green Deal scheme cost taxpayer £17,000 per property
Increased bills
In addition, the National Audit Office noted that the Energy Company Obligation scheme running alongside the Green Deal has increased costs for energy providers, thus pushing up bills.
Amyas Morse, head of the National Audit Office, observed, ‘the Department of Energy and Climate Change’s ambitious aim to encourage households to pay for measures looked good on paper, as it would have reduced the financial burden of improvements on all energy consumers.’[1]
‘But in practice, it’s Green Deal design not only failed to deliver any meaningful benefit, it increased suppliers’ costs-and therefore energy bills-in meeting their obligations through the ECO scheme,’ Morse added.[1]
Campaigners are pleading with the Government to replace the Green Deal with another scheme as soon as possible. From this month, landlords have been unable to refuse reasonable requests from their tenants for energy efficiency improvements to be made on their rental home.
[1] http://www.bbc.co.uk/news/business-36043125