The Green Deal and ECO
Ian Chapman
Affordable Warmth Project Manager
What is ‘The Green Deal’?
• The Coalition Government’s flagship policy for improving the energy
efficiency of buildings in Great Britain
• An innovative financing mechanism which allows consumers to pay
back through their energy bills for upfront energy efficiency
improvements to their home
• A financial obligation which is only paid whilst the benefits are
enjoyed – when the bill payer moves out, the charges stay with the
property
• Based on a key principle that energy efficiency related changes to
properties pay for themselves, in effect, through the resulting
savings on fuel bills
The Green Deal Process
ASSESSMENT
RECOMMENDATIONS
QUOTES
INSTALLATION
BENEFITS & REPAYMENTS
What is the Energy Company Obligation
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Not every household will be able to save on their energy bills by taking up a Green Deal
plan, so there will be additional help for those who need it most
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The Energy Company Obligation (ECO) will focus energy companies on improving the
ability of the vulnerable and those on lower incomes to heat their homes affordably, and
on improving solid wall properties, which have not benefitted much from previous
schemes
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The Obligation will require energy companies to support the installation of energy
efficiency improvements to homes and will be designed from the ground up to integrate
with Green Deal
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Support from the ECO funding will be a significant driving force, providing market
certainty; promoting innovation and investment within the supply chains; and driving
down costs and ensuring that all consumers really can improve their homes and benefit
from the Green Deal
The Shape of ECO and Eligible Improvements
The expected investment from suppliers to deliver on their carbon reduction
targets with three obligations:
Home Heating Cost Reduction Obligation (HHCRO)
Is available to private tenure housing and will primarily install insulation
and heating systems
Carbon Saving Obligation
Is available to any household and is targeted at delivering solid wall
insulation (SWI), insulation to non-standard cavity walls or hard to treat
properties e.g. three storey properties
Carbon Saving Communities Obligation
Is available to any household and will target the installation of solid wall
insulation, loft insulation and cavity wall insulation to more deprived
communities
Ashfield District Council’s
Business Case
The Affordable Warmth Team developed a Business Case for improving the
energy efficiency of Private Sector Housing by utilising the Green Deal and
ECO Funding. The business case focused on the following options:•
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A Green Deal Provider
A Green Deal Partner
A Green Deal Promoter
The “do nothing” option
The Council adopted the Green Deal Partner model which involved the
becoming an accredited Green Deal Assessor Organisation (GDAO) and
procuring a Green Deal Provider as a partner.
Benefits of a Green Deal Partner
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The Affordable Warmth Team is able to offer truly impartial Green Deal
Advice Reports (GDAR)
The properties that have measures (loft, cavity wall or external wall
insulation, etc) highlighted on the GDAR will be offered the opportunity to
work with the Councils Green Deal partners to realise the measures.
The homeowners that are ineligible for green deal approved measures
funding will be informed of the any low cost measures available and energy
saving advice
The Team have the potential to earn income from “successful” referrals to
the Delivery Partners.
The data gathered as part of the GDAR will be used to populate the
Councils database to offer a real time stock condition report.
It will be left to the Green Deal/ECO partners to source all appropriate
funding for the scheme and ADC will not be making any direct financial
contribution to the measures
The offer to residents will be ADC branded and delivered via private sector
delivery partners.
Our Partners
Ashfield District Council have procured two delivery partners, NWS Limited and
Starfish Group Limited, who we have been working with access ECO funding
and very soon we will be in a position to offer Green Deal Finance
Green Deal Approved
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Ashfield are an approved Green Deal Assessor Organisation with two full
time employed Green Deal Assessors and a pool of sub-contract assessors
We have procured to delivery partners to allow the residents to realise the
recommended measures produced on the Green Deal Advice Report
(GDAR)
ADC receive £105 for each GDAR we produce that is implemented if at
least one of the recommended approved measures is installed
ADC receive £50 for Energy Performance Certificate (EPC) we produce and
carry these out post installation
ADC receive £50 for each referral we make to our procured contractors that
implement a measure
Insulate Ashfield
Insulate Ashfield has been operating
since November 2013 and will
run until March 2014.
To date the scheme has accessed
funding to replace around forty boilers,
installed External Wall Insulation (EWI)
to twenty properties and provided
energy saving advice to around 100
residents.
The Autumn Statement
Reforming Green Deal
Starting from January and then over the following months
DECC proposed to make changes in three broad areas:
• Making Green Deal more accessible to consumers
through improved information and signposting;
• Making it easier for firms to operate in the market; and
• With the Green Deal Finance Company, making sure the
Green Deal finance offer gives customers what they
need
The Autumn Statement (Cont.)
Reforming the Energy Company Obligation
• Reducing the Carbon Obligation (CERO) target by 33%. The 2015 Carbon Saving
Communities (CSCO) and Affordable Warmth (AW) targets will remain the same.
• Extending the ECO scheme to March 2017 with new targets for CERO, CSCO and
AW at 2015 levels.
• Enabling energy suppliers to carry forward any over delivery against 2015 targets to
count towards their 2017 targets.
• Allowing companies which have delivered substantial early progress against their
current CERO target to benefit from an uplift in scores for the measures delivered
• Extending the CSCO element of ECO from the 15% to the 25% lowest areas on the
Index of Multiple Deprivation and simplifying the qualifying criteria.
• Including District Heating as an allowable primary measure under CERO.
• Including loft and easy to treat cavity walls as an allowable primary measure under
CERO.
• Introducing and standardising measures to prevent fraud, particularly around loft and
easy to treat cavity wall insulation.
• Introducing a solid wall minima set at 100,000 measures to be delivered by 2017
across all companies and all elements of ECO.
Changes to Green Deal Cash Back
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Green Deal Cash Back has been extended to the 30th June 2014
Cash Back for some measures have been increased:
– Solid Wall Insulation up to £4000 from £650
– Room in roof insulation up to £1000 from £220
– Double Glazing up to £650 from £220
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Cash back can only claimed back via a Green Deal Provider
To avoid over subsidy, Councils who have been awarded the Green Deal
Communities funding will not be able to offer cash back
From April 2014 cash back will not be available to claim if taken alongside
ECO.
Cash back details from June 2014 onwards have yet to be announced
DECC Green Deal Communities
• Ashfield District Council have been formally offered
£1.1m of funding
• The Authority is one of six Councils to be offered the
funding to date.
• Proposals have been judged on:
– The number and total value of Green Deal Plans to be delivered
– Their sustainability in the long term
– Their credibility; e.g. LA’s will need to have identified the
streets/areas to target
– Their creativity in offering local incentives to drive demand for
Green Deal Plans
– Consistency with state aid and procurement rules
Any Questions?
Ian Chapman
Ashfield District Council
Affordable Warmth Team
i.chapman@ashfield-dc.gov.uk