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Green Deal and ECO Green Deal and ECO Green Deal Carbon Saving Communities Obligation = 20% of Carbon Saving £190m (15% of which has to be delivered in rural low-income households settlements with a population size under 10,000) ECO Energy Company Obligation £1.3bn per annum Carbon Emissions Reduction Obligation £950m/yr Home Heating Cost Reduction Obligation (previously Affordable Warmth) £350m/yr Green Deal Green Deal There are now 45 available measures https://www.gov.uk/government/uploads/sy stem/uploads/attachment_data/file/48406/ 5504-which-energy-efficiencyimprovements-qualify-for-g.pdf • The customer receives a package of energy efficiency measures at no up-front cost from a ‘Green Deal provider’. • The cost of the measures is paid back over the long term (for example, 25 years) through repayments made via energy bills. • The Green Deal will include owner-occupiers, the private and social rented sectors and the commercial sector. ECO • ECO will act to help subsidise work that does not meet the Golden Rule, and fully fund certain eligible households for measure that reduce energy costs. • The Energy Company Obligation will have a split of 75:25 • It has three obligations Carbon Saving Communities Obligation = 20% of Carbon Saving £190m (15% of which has to be delivered in rural low-income households settlements with a population size under 10,000) ECO Energy Company Obligation £1.3bn per annum Carbon Emissions Reduction Obligation £950m/yr Home Heating Cost Reduction Obligation (previously Affordable Warmth) £350m/yr Carbon Emissions Reduction Obligation • Reduce CO2 emissions by 0.52MtCO2/yr • The level of the Carbon Saving Obligation will be set at 75 % of the overall Energy Company Obligation • Investment of £950m per annum (Once the Carbon Saving Communities Obligation is taken into account this will be £760m per year). • The Carbon Saving obligation will be open to all regardless of ability to pay. ECO Energy Company Obligation £1.3bn per annum Carbon Emissions Reduction Obligation £950m/yr Carbon Saving Communities Obligation • 20% (190mil) of the Carbon Reduction has been diverted to the Carbon Saving Communities Obligation • It will run much as CESP did • Only for insulation measures • Will target disadvantaged communities Carbon Saving Communities Obligation = 20% of Carbon Saving £190m (15% of which has to be delivered in rural low-income households settlements with a population size under 10,000) ECO Energy Company Obligation £1.3bn per annum Carbon Emissions Reduction Obligation £950m/yr • A Rural Safeguard has also been put in place 15% of the £190mil (approx 28m) will be required to benefit rural households. Home Heating Cost Reduction Obligation • Funding amounts and eligibility remain unchanged from the consultation ECO Energy Company Obligation £1.3bn per annum • Any measure that reduce costs will be allowed • NEA believes the funding levels to be inadequate. • Hills review thinks it should be at least 50% to prevent it being regressive and knocking further households into fuel poverty Home Heating Cost Reduction Obligation (previously Affordable Warmth) £350m/yr ECO objectives & interaction with Green Deal •Green Deal •Finance Green Deal Measures fully meeting the Golden Rule ECO – Carbon Emissions Reduction Obligation - The next most cost-effective measures, combination of ECO subsidy and GD finance ECO - Carbon Saving Communities Obligation Obligation – insulation measures in low-income communities – funded through the Carbon Savings Obligation. •ECO •Subsidy ECO – Home Heat Cost Reduction Obligation Measures providing affordable warmth to the vulnerable Green Deal and ECO update (March 2013) Key points (to the end of March) • 9,268 GD Assessments had been lodged to date, up from 1,803 at end of February (with 7,465 in March alone, compared to 1,729 in February). • 108 GD Assessor Organisations and the 1,003 GD Advisors they employ had been accredited, up from 77 and 618 at end February respectively • £68.9 million worth of contracts had been let through the ECO brokerage system , compared to £26.9 million at end February. (Source: https://www.gov.uk/government/publications/green-deal-and- energy-companyobligation-eco-monthly-statistics-april-2013) • Only about 100 people have signed up to Green Deal plans and are paying back loans • Only three are actually paying back a loan through their electricity bill. Others are paying back through other means such as monthly direct debits. (Source: The ENDSReport, May 15th 2013)