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Changes to the Green Deal Cashback Scheme

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 :

  • The scheme will be open for new applications until 30 June 2014. Vouchers will have a validity period of three months, or six months for Solid Wall Insulation ( SWI). However, all work must be completed and vouchers redeemed by 30 September 2014.
  • The rates have changed for some items: Eg, SWI changes from £650 up to £4000. These new rates will apply to applications made or redeemed on or after 13 December and the Cashback Administrator will contact people affected by this.
  • We have increased the customer’s contribution cap from half to two thirds, bringing more households within reach of the maximum cashback rates for each measure.
  • For customers who do not want to take out a Green Deal Plan to make energy efficiency improvements we are removing the requirements for Guarantees and Insurance Backing for all measures except for cavity and solid wall insulation.
  • Customers will not be able to claim cashback for packages of measures that include a contribution from Green Deal Communities schemes, and from April 1, customers will not be able claim cashback for packages of improvements that include an ECO contribution

Why the change to blending ECO and Cashback?

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.

What will this mean for Providers?

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.

Won’t this change make it challenging to encourage more costly improvements such as Solid Wall Insulation?

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)

  • Cost to install SWI £7000
  • Cashback available ( up to max of) £4000
  • Difference £3000 which can be paid for through a combination of a Green Deal Plan and/or savings or other finance routes.

The cashback website will be updated with the changes shortly. View the Green Deal Cashback quickguide for up to date information on the scheme.

19 Responses to “Changes to the Green Deal Cashback Scheme”

  1. Gill says:

    I am with Mike although I have worked with different installers and the average prices in total are as follows

    £6000 small
    £8000 Medium
    10 – 12k Large plus

    all in this can vary on enabling work so please take that into account also the finish you have in regards to meeting the golden rule

    please think about what insualtion you already have installed
    eg 270mm loft, solar panelsA rated Boiler Cavity Wall insulation double glazing and doors if you have all these you are unlikely to meet the savings required GOLDEN RULE (yes some companys try to get people with cavity walls on this grant) :/ lol

    I am a real energy surveyor not GDA OR DEA i have been for 15 years if you want true advice before you pay anything out please feel free to ask me

    if you are off the gas grid (fuel is electric lpg oil coal) have actual solid walls with wooden windows/doors and your loft has minimal insulation you are more than going to meet the golden rule

    EWI is a big job I have surveyed over 4000 houses & come across most things, go too cheap you will meet the cowboys who don’t truly fit to high standard get different quotes research the company ask them to produce previous work and installations go visit them if possible. EWI is an exceptional measure to have installed its the best money saving on the market but not by any means cheap to do I will only work for quality installers who do not sub contract

  2. sorry but green deal big rip off opportunity for the scammers. I have lost £249 to a scam assessment company avoid it at all costs, my case taken up by BBCs Rip Off |Britain.

    • We’re sorry to hear about your experience; it’s unacceptable if a company is defrauding people.
      All companies registered as Green Deal assessors meet strict criteria to get our Green Deal quality mark. If they are found to not be complying, they can have their authorisation suspended or withdrawn. There is a Green Deal complaints service (0330 440 1624) or you can go directly to Trading Standards.

      There is no fixed or suggested amount charged for Green Deal assessments and we encourage customers to shop around by speaking to the Energy Savings Advisory Service (0300 123 1234) or using the gov.uk search tool online (http://gdorb.decc.gov.uk/consumersearch). As a guide, the average cost of an assessment is around £125. As of June 2014, customers who go on to make eligible home improvements can apply for up to £100 cash back towards the cost of their assessments, via the Green Deal Home Improvement Fund.

  3. Mike Dinmore says:

    Lots of inaccuracies surrounding costs of having EWI installed presumably by people not actually installing the systems.

    A realistic cost would be around £90 to £100 per m2 installed and guaranteed for 25 years as per cash back criteria.

    New £6000 level is great but would be better if customer did not have to fund the full cost upfront and wait for the £6000 cash back.

    Alternatively give scope for the customer to sign over their cash back directly to the installer so they don’t have to find the £6000 extra upfront.

  4. Kevin Conway says:

    Ref . EWI
    Any system you buy with bba approval will cost you £30 per square metre . Then you add the cost of the trim for the base ,windows , corners, pipes, flue extension, £500
    Then add the new cills . £300
    Scaffolding £900+
    Providers costs. £1200 for the loan.
    2 epc. (before and after for cash back) £160

    so on a end terries house approx. 100square metre the cost before any labour is approx. £6060

    The labour force are then going to have to have to put the materials on and guarantee the job for 25 years.
    You can get a cheap labour force to but the system on and it will look great at first, but ten years down the line.
    What the customer needs to know is this kind of work cost more to put right than the original cost. When your house is devalued by 20% because of the bad insulation and the you try to redeem your guarantee . the material supplier are blaming the installer and the installer has gone bankrupt and had his money. your left with a night mare problem . Because of the tight constrains of funding available this gives an opening for the cheap system layers . I am going to pick and choose the jobs I do and add value to a property. small family run business but the detail in. do not get in to a situation where you have to except the bottom feeders of this game.

    • kerry says:

      Hello Kevin

      You sound like a company I wish to get a quote from and know what you’re talking about in quality of product and insulation. Do you have a web site you can email to me?

  5. Roger Parker, Com' Energy Assessor says:

    Admin,
    sorry to be pedantic but you cannot find Greed Deal Assessors (as the layman understands them to be as being an individual; alias Advisors) on the DECC Website. Please use and state their full title/description, as the DECC site only lists Green Deal Assessor ORGANISATIONs. Individual Energy Assesor/Green Deal Adivsors are unaccessable to the general public and this is a bone of contention within the industry. Householders and companies do not want to go through an intermediatory. They want to contact and talk to their local independent Assessor/Advisor, not go through some anonomous Panel and then have a stranger from somewhere turn up to do the GDAR. This exclusionist structure of GreenDeal is another consumer resistance to its take-up and needs to be changed. GD Advisors need their own register, their own exposure, just like Energy Assessors have their own Register. RP

  6. Owen Coyle says:

    As a GDAO and GDI based in Scotland we are quite jealous of the scheme which has been setup down south to be honest. External SWI is a nice to have where as IWI can be done so much cheaper and is likely to be more effective. The £4k cashback plus £3k contribution example would cover most 2-3 bed properties unless the costing is to steep, without the need for GD finance. We are waiting patiently on something similar up here but still have nothing confirmed.

  7. Green Deal is fine.

    Cashback WAS fine

    ECO is broken – energy companies are not using it in the way it was meant and so green deal packages fall apart at quotation stage.

    Fix ECO. Return cashback to normal levels and advertise green deal.

  8. admin says:

    Hi. Please take this as a friendly reminder of our Terms and Conditions around advertising on this blog
    We’re happy to see help and advice but ask that organisations please refrain from making unsubstantiated claims.
    Green Deal approved assessors, installers and providers can be found using the Green Deal consumer search tool

  9. Paul Mann says:

    Mike pirozek .my company can help you . Insulation render solution . You can find us on the installers list

  10. sorry about typos it’s cos i thrashed the email in anger and partly big finger syndrome! lol

  11. I empathise with the problems.

    We assess for Green Deal and fit SWI both internal and external.

    It sounds people have been put through the ringer. Firms are unwilling to help because they have to fund the whole project so unless you are going to put a chunk of your won money in they are not interested. in some cases firms arn’t being paid for months and months and no business can sustain this.
    I don’t know how many firms are out there doing swi now buit imagine how many are rubbishing eco and green deal now becasue of this reason.

    DECC wants to wake up firms are trusted to carry out very complex and extensive work start to finish but they are not trusted to be paid in good order and in stages. It is frankly redciulous I suggest DECC get out of thir nice comfy offices and get thir backsides onto the ground floor and the coal face and learn whats really happening out there.

    I am available for advice and consultation at any time for anyone finding it difficult to understand the syatem or get a sensible ansewr and decision.

    We can help everyone to get a fair share of funding and get the job done fast and to a high standard.

    Please don’t hesitate to drop me an email: mikestripling@cobaltcarbonfree.co.uk

  12. Pj says:

    It’s the golden rule that needs to change I’ve contacted loads of so called experts regarding GD AND THEY TALK A GREAT GAME UNTIL YOU GIVE THEM Actual properties and then they all get confused

  13. This all sounds dreadfully complicated!

  14. john watts says:

    Jan 2013 I fell for the GD con. Paid BG for the assessment ,had a survey by a local provider SWI costs £15000. As a pensioner in a 100 yr old house this seemed perfect as our heating bills were very high. Three years ago I got rid of my very old Potterton using my small private pension to pay for this. Wonderful house heats very efficiently. I don’t have any finance of my own, now it seems I must contribute and get a loan, how, I am 69yr old pensioner. It seems I don’t spend enough on electricity. So instead of buying a very good gas system from BG I should have spent my money on expensive storage heaters. See where the catch is. Welcome to another monthly £120+ winter gas bill. Chill.

  15. Mike Pirozek says:

    I’m sorry but these figures are just not realistic and as someone trying to initiate some home improvements (SWI) using the Green Deal and ECO, it is massively frustrating. We own a med sized detached house (1,800 sg ft) built in the 1830′s, a perfect home for SWI and we have had two quotes of £18k and £19k so where the £7k figure comes from I don’t know – we would get £4k cashback and we have only been offered £3k of ECO so would need to put £12k through Green Deal Finance which firstly doesn’t stack up with the golden rule and secondly is proving impossible to obtain as none of the finance organisations are willing to offer anything competitive or simply don’t know the rules. We’re ready to give it the go ahead, even if we had to put up to £8k on green deal finance but everybody involved is unable or unwilling to help!

    • Hi Mike,
      Depending on where you’re based, we would be happy to help. It sounds like you’ve been given two quotes that are excessive to say the least.
      Regards
      Les de Hoog

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