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The Green Deal and the Energy Company Obligation (ECO) Oliver Savage Climate Action Team. What is the Green Deal?. A mechanism to enable property owners to improve the energy efficiency of their property without any up front costs Available to all property owners
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The Green Deal and the Energy Company Obligation (ECO)Oliver SavageClimate Action Team
What is the Green Deal? • A mechanism to enable property owners to improve the energy efficiency of their property without any up front costs • Available to all property owners • Improvements are paid for through the electricity bill supported by “Green Deal Finance” • Will enable investment in improvements that have a payback period short enough so that it complies with the “Golden rule” • The “Golden Rule” is that as a result of taking out a Green Deal the total energy bill will be lower than the current bill even while paying off the finance (based on current prices!).
What is the ECO? • The Energy Company Obligation (ECO) places a responsibility on utility companies to invest in energy efficiency improvements that do not meet the Golden Rule – effectively a grant from the utility to the property owner. • There are 3 types of ECO funding • Carbon Reduction – funding targeted at “hard to treat homes” such houses with “difficult cavities”, solid walls, off-gas, etc. Usually this funding would be available alongside a Green Deal – or where there are no measures to complete that the Green Deal would provide finance for. • Affordable Warmth - funding targeted at households meeting certain criteria mainly related to income and family make up • Community Affordable Warmth – targeted funding aimed at properties within the 15% most deprived lower super output areas in England (includes 2 areas in North West Leicestershire and 2 in Charnwood) • Utilities have targets to deliver measures and can be penailised if they do not reach these targets.
When does the Green Deal Start? • The Green Deal has started – property owners can get Green Deal Advisory Reports now • Green Deal Providers can offer deals from January • Large utilities are already seeking partners to support the delivery of the ECO • The Department fro Energy and Climate Change have prepared some simple guides to the Green Deal. These are available on their website: http://www.decc.gov.uk/en/content/cms/tackling/green_deal/gd_quickguides/gd_quickguides.aspx • There is also a government Green Deal website for the public https://www.gov.uk/green-deal-energy-saving-measures/green-deal
What is the role of Local Authorities? The Government has identified three potential roles for Local Authorities • To become Green Deal Providers • To be “partners” in a Green Deal Provider • Promote the Green Deal (and possibly to provide promotion of a number of Green Deal Providers that meet specific requirements of the Local Authority; i.e. That the Green Deal Provider has an apprenticeship / training scheme within Leicestershire to support employment OR a certain ratio of installations are completed by installers based in Leicestershire
What is happening in Leicestershire? • A county wide bid to the DECC Local Authorities competition is being drawn up to be submitted by 30th November. • Bid centres on two parts – Fuel Poverty Bid (to link with Warm Homes, Healthy people fund and Green Deal Pioneer Places Fund. • Bid being led by rosemary Leech at Hinckley and Bosworth – contact for further information or involvement. • Will be used as the launch of joint working on Green Deal across the county – need to consider what other partners to engage with.