DECC recently announced several changes to the existing Green Deal Cashback Scheme (operating in England and Wales) which rewards consumers for taking action to improve the energy efficiency of their homes through the Green Deal. These changes were the result of feedback we’ve had from industry and consumers on how the scheme could be made more attractive to increase energy efficiency in households.
A quick recap of the changes :
DECC wants incentives to drive a greater uptake of energy efficiency measures than would otherwise be the case, and ECO companies already have ECO targets which they are obliged by law to meet. It is important that ECO costs are no higher than they need to be. The changes to ECO proposed in December, which we are now consulting on, will reduce costs to the energy companies.
By keeping the funding streams separate , we avoid the possibility that cashback simply represents taxpayer subsidy of what the energy companies would be doing anyway, reducing their costs still further without producing any additional benefits to households.
We intend to make changes to the Cashback Customer Terms and Conditions to reflect the changes in eligibility criteria, and we will write to Providers shortly regarding potential changes to the Provider Terms and Conditions.
Cashback vouchers are already based on the customer’s contribution costs excluding any ECO discount applied, and based on the quotation that the Provider gives to the customer for the work.
Changes to cashback apply to the Cashback Terms and Conditions only. The arrangements between Energy Suppliers and Providers regarding ECO is a matter for them.
We have revised the rates of cashback on offer to better reflect the costs that customers incur in installing measures and as such we expect the increased SWI rates will make it more attractive to consumers, especially as part of a Green Deal finance plan.
For example: ( all costs are illustrative)