The Government’s Energy Act was given royal consent today, meaning DECC’s flagship policy the ‘Green Deal’ is due to launch in Autumn of next year.
According to the Government, the Green Deal will make houses “warmer and cheaper” and will help homeowners finance energy efficiency measures by removing the upfront cost of installing insulation or more efficient boilers, for example. The repayments for the loans will be paid back through energy bills, which should theoretically be less than they would be due to the energy-saving measures.
A DECC statement said: “The repayments must obey a “golden rule” whereby the charge is no more than the expected savings, meaning householders should save from day one.”
Energy Secretary Chris Huhne said: “The coalition is doing all it can to bear down on energy prices, but insulation will provide the long term help to manage bills. When it’s introduced, the Green Deal will be as easy as ABC by making work affordable, providing bespoke independent advice and choice in the market from well-known and trusted high street names.”
DECC says the Green Deal could be a massive business opportunity and is expected to attract capital investment of up to £15 billion in the residential sector by the end of this decade, supporting around 250,000 jobs.