The Green Deal and the Energy Company Obligation (ECO) Oliver Savage Climate Action Team.

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Presentation transcript:

The Green Deal and the Energy Company Obligation (ECO) Oliver Savage Climate Action Team

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 Green Deal?

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. What is the ECO?

The process for property owners

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: ides.aspx There is also a government Green Deal website for the public When does the Green Deal Start?

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 the role of Local Authorities?

I am not aware that any District or Borough Council has taken a view and / or has a plan in place to work through the Green Deal Is that true? Should we be considering working collectively on the Green Deal to provide a single proposition / response for Leicestershire? If so – how would you consider this could be developed? What is happening in Leicestershire?