The Government is making big promises on energy efficiency spending with the publication of the Green Deal consultation and a new policy that promises large private sector investment to drive down the cost of retro-fit implementation. The key features of today's announcement, according to DECC, are as follows:

• Green Deal scheme will kick start £14bn investment over the next decade,
  supporting at least 65,000 insulation and construction jobs by 2015
• £1.3 billion a year additional help from energy companies for vulnerable and
  hard-to-insulate homes
• Overall average household energy bill in 2020 will be 7%, or £94, lower than
  without energy and climate polices

Chris Huhne, Secretary for Energy and Environment, had this to say today on the ocassion of DECC's Annual Energy Statement to Parliament:

“The Green Deal is about putting energy consumers back in control of their
bills and banishing Britain’s draughty homes to the history books. By
stimulating billions of pounds of private sector investment, the Green Deal will
revolutionise the way that we keep our homes warm, making them cosier, more
efficient – and all at no upfront cost.

“The Green Deal is also a massive business opportunity for firms up and down
Britain, helping to power the economy and creating jobs. From one-man bands and
local authorities, to the big supermarkets and DIY stores, we want as many
providers getting involved as possible because that’s what will give consumers
the best deal.

“I want to insulate Britain’s homes not just from the cold weather, but also
from the chill winds of global fossil fuel prices. It’s these that are pushing
up consumer energy prices, and it’s why our balanced package of policies aimed
at achieving energy savings and shifting to more home grown alternatives is the
right one for the economy and all of us who pay energy bills.

“There are certainly costs to replacing our ageing energy infrastructure with
modern, clean power stations, and we take very seriously any impact of our
policies on what consumers and businesses pay. We’ve repeatedly taken steps to
reduce this – by removing some planned levies on bills and making others more
cost effective and within budget.

“But a crucial – and too often ignored – priority of our whole strategy is to
reduce the amount of energy we use in our homes.”

Source: DECC

In what the DECC is proclaiming as a sign of the attraction of the Green Deal to businesses, the formation of the industry-lead Green Deal Finance Company (GDFC) is designed to offer financial opportunities at competitive interest rates for delivering efficiency changes.  The Green Deal, a loan system that will offer home-owners loans to install energy efficiency products into their homes, is promising that the loan repayment amount will never be more than the money saved on energy bills as a result of the installations that take place.

“This is an exciting initiative with the potential to reduce interest rates on Green Deal finance", said Energy Secretary Chris Huhne,  "while also supporting healthy competition amongst Green Deal providers including small businesses".

The GDFC has been formed as a joint effort from some of the biggest players in the energy industry and finance, including Goldman Sachs, Carillion, EDF and British Gas .

Source:  DECC

A new report by photovoltaics company Engensa, due to be released soon, shows encouraging signs in the growth of new jobs resulting from the feed-in tariff system. However, the report warns that a cut to the tariff above 25% could spell disaster for approximately 10,000 jobs in the sustainability industry in Britain. The report also rebuked criticisms about the cost of the feed-in tariff project from some sections of the mainstream press, arguing that on average it only costs in the region of 19 pence a month to provide (or 0.4% of the figure argued by the Daily Mail).

Fears of cuts may be tempered somewhat by the report's claim that providing this particular subsidy for home producers of renewable energy is actually profitable for the Treasury. When taking into account tax and the revenue generated by the jobs the scheme has created, the Engensa report predicts a £65m surplus, promoting the idea that subsidies for renewable energy can be sustainable economically as well as environmentally.

"When you see the Treasury benefiting, you see a transition towards a sustainable economy in an environmental sense" said Engensa Chief Executive Toby Darbyshire, "it's very hard to make the argument this is a bad thing."

Source:  Business Green

Energy and Climate Change Secretary Chris Huhne today proclaimed an increase in homes adopting insulation measures such as cavity wall and loft insulation.  Nearly 60% of homes (where appropriate) have taken up such measures, but Huhne warned there was still much to do when it comes to the “Big 6″ energy companies fulfilling their responsibilities of offering insulation services to customers;

“More and more people realise that insulation can save you money and make your home cosier.  More than £100 can be knocked off your bill if you get your loft lagged and cavity walls filled and thanks to tough government targets for the Big 6 energy companies, consumers can get free or discounted insulation.”

The drive towards energy efficiency measures, such as home insulation, are part of the Government’s wider CERT scheme – which today claimed a 21% increase in professional insulation installations compared to last year.

However, with 42% of homes still lacking adequate home insulation, there is undeniably much work to do – particularly in terms of making the savings potential of such efficiency measures tangible to consumers.

Read the full DECC press release here