Green Deal

Resources

2014-08-25 Read our blog post "Green Deal update – 6,000 to 10,000 more Green Deal plans by March 2015?"

2014-07-25  Read our blog post “Green Deal update – headline growth numbers hide falling conversion rates”

2014-06-24  Read our latest blog post "Green Deal update - what's behind the headline growth numbers?"

2014-05-21  Read our blog post "Green Deal - lacking product/ market fit?"  

Read our summary of August's update below.

What is the Green Deal?

The Green Deal is a government-sponsored initiative to give householders access to loans for improving energy efficiency of their homes.

Loans are subject to a ‘golden rule’ that means householders pay no more for the combinations of energy bills (i.e. electricity and gas), interest charges and loan repayment than they would have done without the home improvements. Loans are associated with the meter point and not the householder, so when the householder moves home, the loan stays behind for the new owner or tenant to pay.

The Green Deal is one element of DECC's policy on energy efficiency for householders.

The opportunity

Improved energy efficiency is a major component of how the UK aims to reduce its emissions footprint and achieve its carbon targets.

The big problem, and the big win, is solving the retrofit problem.

The issue here is how to motivate householders to invest in energy efficiency measures. To date, rising energy bills, growing awareness about climate change, and political interventions have done little to drive behaviour change in householders. Much of the success in improving energy efficiency to date has been through obligations placed on the energy supply companies.

The Green Deal is an attempt to engage the majority of householders in investing to improve the energy efficiency of their homes, thereby reducing energy demand (and bills) and cutting emissions.

August update: 6,000 to 10,000 more Green Deal plans by March 2015?

Monthly growth rates have jumped for the six months to July compared to the six months to June, Extrapolating recent growth rates to June and to July, we expect a total of 10,000 to 14,000 Green Deal plans by the end of March 2014.

Request a copy of our presentation on projections and analysis of the latest Green Deal statistics by emailing us at tvf@theventuringfirm.com.

The Green Deal was launched over a year ago in early 2013. On 21st August, DECC published the latest statistics through to July 2014.

Summary points

• Extrapolating from current growth rates, we expect a total of 10,000 to 14,000 Green Deal plans by March 2015.

• On the same extrapolation, we expect more than doubling in workload on average for each Green Deal Provider by March 2015.

• Growth in Green Deal plans is the strongest since April, driven by accelerating growth in assessments.
• The strong growth in assessments is now being seen in newly confirmed plans and plans new to installation.
• Growth in confirmed plans is being driven by new plans rather than delays in moving plans to installation.
• The bottleneck in processing confirmed plans has dropped off rapidly since May, with fewer than 15% of plans ‘stuck as confirmed’.
• A bottleneck is beginning to grow again in installation, with over 20% of plans taking longer than two months to install.
• Whilst improving, a reasonable view of current average workloads is that underutilisation continues to be a feature of Green Deal work.