Green Deal sequel planned but the original fails to impress
It’s going to create a lot of construction jobs, but Building have revealed that the government’s Green Deal is going to cost more to implement than the money that will be saved on homeowners’ energy bills.
The way the Green Deal is expected to work is that homeowners are given loans to make energy efficient improvements to their homes, installing features like cavity wall insulation and solar panels.
The homeowner then pays back these loans over a 25 year period through the savings on their energy bills. To be effective, the energy savings on your bills must be equivalent to the costs of the work carried out.
Construction consultancy Cyril Sweett carried out the research, and found that the majority of improvements that will be carried out under the Green Deal umbrella will cost more than expected, which means that the energy savings will not pay back the cost, which means the government have to allocate more money for the project, and this equals more money for the taxpayer.
This is the latest blow for the government’s green plans, following last week’s Budget that scrapped plans for zero-carbon homes, which caused uproar from numerous people in construction.
The news that the Green Deal could become a failure doesn’t bode well for the “Green Deal II” plans that have been floating around this week.
Construction News reports that several key ministers, including Communities Secretary Eric Pickles and Housing Minister Grant Shapps, are considering a new Green Deal-incentive scheme for new homes.
The plans would see house builders effectively pay for making a home zero-carbon through future electricity saving. The scheme hasn’t gone through the consultation process yet, this is expected to happen in the next few months.
Posted on April 1, 2011, in construction jobs, construction news, Electrical News, Plumbing News, train4tradeskills and tagged construction, construction jobs, Cyril Sweett, Energy conservation, Eric Pickles, Government, Grant Shapps, green deal, Green Deal jobs, Low-carbon economy, t4ts, train4tradeskills. Bookmark the permalink. Leave a comment.