Household energy efficiency measures Contents

Summary

The Department of Energy and Climate Change implemented the Green Deal in 2013 without adequately testing the design of the scheme with consumers. In practice, householders were not persuaded that energy efficiency measures were worth paying for through the Green Deal and take-up of loans was abysmal. The Department’s forecast that the Green Deal Finance Company would provide loans worth more than £1.1 billion by the end of 2015 was wildly optimistic—the actual figure was £50 million. The finance company has incurred large financial losses as a result of the low demand for green deal loans resulting in the Department writing off some £25 million of the amount it loaned to the company. While the complementary Energy Company Obligation scheme has led to energy efficiency improvements in over 1.4 million homes, the Department does not have the information it needs to measure progress against its objectives. In particular, it cannot tell what impact the schemes have had on reducing fuel poverty.





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14 July 2017