Industry experts tell H&V News their thoughts on the Government’s decision to no longer provide funding to the Green Deal Finance Company.
The Federation of Master Builders said the government must set out a clear vision for what will replace the Green Deal.
FMB chief executive Brian Berry said the Government’s announcement that it will provide no further funding to the Green Deal Finance Company and will also stop any future funding of the Green Deal Home Improvement Fund is the final nail in the Green Deal’s coffin.
Mr Berry described the Green Deal as the greatest flop of the last Parliament: “It failed spectacularly in its mission to incentivise millions of house holders to improve the energy efficiency of their homes. However, the Government would have been wise to reform, rebrand and relaunch the Green Deal rather than scrap it altogether.”
As the UK moves closer to the 2050 carbon reduction target, Mr Berry said the Government should be increasing investment in this area but instead, ministers have side lined energy efficiency – filing it under ‘too difficult and too expensive’.
Mr Berry advises government to provide home owners with zero interest loans to make their properties energy efficient. He said this move could generate more tax revenue for the Treasury than it costs to subsidise, an approach which has worked well in Germany.
Heat Pump Association (HPA) president Mike Nankivell said the HPA continues to oppose the previous administration’s decision to make the Green Deal the main portal for the Renewable Heat Incentive (RHI).
Mr Nankivell said: “We recommended a disconnect between the Green Deal and the RHI as this had been identified as a significant impediment to the take up of renewable heating technologies in the domestic sector, and as such we cautiously welcome this announcement.”
He said HPA is concerned that pressures to reduce government spending could impact other schemes and incentives designed to improve home insulation and energy efficiency.
BMF managing director John Newcomb argued that the Green Deal was over-bureaucratic, the finance package was unattractive and it was been poorly implemented.
However, Mr Newcomb said the concept was good and the BMF believe the Green Deal could have been extensively overhauled rather than scrapped altogether.