The Secretary of State for Energy and Climate Change (Mr Edward Davey)
In December, the Government announced action they were taking to reduce the impact of their policies on energy bills which included £450 million over three years for household energy efficiency. I wanted to update the House on progress. In February, we made some changes to the current green deal cashback scheme, including extending it to the end of June 2014 and uplifting some rates to boost the supply chain and help customers while we designed new schemes and consulted on our proposed changes to ECO.
In March, DECC awarded £88 million to 24 consortia in English local authorities to promote green deal on a street-by-street basis, representing a huge opportunity for local industries and the energy efficiency of those communities, including projects aimed at the private rented sector. On Thursday, I announced details of a new green deal home improvement fund. From June, householders across England and Wales will be able to get up to £7,600 back through this new scheme to stimulate warmer, greener homes while enabling them to take control of their energy bills.
The fund will help households to install energy efficiency improvements by rewarding them with money back on the cost of installing two or more of 13 measures eligible under the scheme.
Under the green deal home improvement fund, domestic energy customers can claim:
up to £1,000 for installing two measures from an approved list; and/or
up to £6,000 for installing solid wall insulation; and
up to £100 refunded for their green deal assessment.
In addition, those who have bought a property in the 12 months prior to application may qualify for up to an additional £500 if they carry out energy efficiency improvements under the scheme.
These rates are guaranteed for the first £50 million, and up to £120 million is available this financial year.
Private or social landlords can benefit from the new scheme if they undertake to improve the property and are paying the costs themselves, subject to de minimis thresholds for state aid.
We have simplified the fund’s application process for customers and opened up access to approved green deal installers as well as providers. This will expand the market for smaller businesses, while maintaining the quality of installation, and enabling them to compete for energy efficiency opportunities in new and innovative ways. It will also give more householders a broader choice in how they make and pay for energy-saving home improvements.
This is the latest in a series of measures we are taking to help families across the nation enjoy the benefits of warmer, more energy-efficient homes and lower bills to stimulate business growth and to save carbon.