Green energy scheme declared a "dud" after just 11 homes in the region sign up

The Northern Echo: (7545220) (7545220)

A SCHEME to cut energy bills has been declared a “dud” because just three people are signing up each month across the region.

Only 45 households in the North-East and Yorkshire have joined the ‘Green Deal’ in 14 months, taking out a loan to lag a loft, fill cavity walls, or replace an old boiler.

That includes just 11 homes in the North-East – which means it is taking close to a staggering six weeks to attract a single customer.

Across England, 317 Green Deals were completed by the end of March, a fraction of the 10,000 that ministers had hoped to attract by the end of 2013.

Labour, which uncovered the figures, said they showed that - with £55m spent on the scheme so far – it was costing more than £40,000 for each household.

And it proved that widespread predictions that the scheme would flop – because of sky-high interest rates and frightening bureaucracy – had been proved correct.

Jonathan Reynolds, Labour’s energy spokesman, said: “David Cameron’s failure to stand up to the energy companies means rising energy bills are at the centre of the cost of living crisis.

“Energy efficiency is one of the best ways to help people get their bills under control, but the statistics show that the Green Deal has completely failed.

“It is clear for all to see that, rather than being a great deal, the Green Deal is now a dud deal.”

But Energy Secretary Ed Davey said a simplified Green Deal ‘home improvement fund’ was launched last month and had already attracted 2,800 applications.

He said: “We've changed the Green Deal to make it simpler and faster for people to make their homes more energy efficient - you could get up to £7,600 back, straight into your bank account.

“I want as many people as possible to benefit from this unmissable offer. It won't be around forever, so sign up now and get your home ready for the winter.”

Under the initiative, homeowners take out 15 to 20-year loans for work – with the guarantee that repayments will be lower than the savings on their bills.

But critics said the interest rate charged - almost seven per cent – immediately called into question whether families would always emerge as winners.

When figures were released last year, they showed that around 40 households were asking for Green Deal assessments each week, in the North-East.

Disappointingly for ministers, the latest statistics suggest the vast majority of those families are deciding not to go ahead with any work.

Labour said that, in Yorkshire, “only a fraction of one per cent of the 18,186 homes to have had a ‘Green Deal Assessment’ have actually had work completed”.

Comments (10)

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6:19am Thu 26 Jun 14

Northcroft says...

Homeowners who have managed to subsidise non homeowners for years CANNOT afford to shell out anymore, half of society (the feckless) get everything free, we (Poor homeowners) are getting sick of paying for things.
Homeowners who have managed to subsidise non homeowners for years CANNOT afford to shell out anymore, half of society (the feckless) get everything free, we (Poor homeowners) are getting sick of paying for things. Northcroft
  • Score: 7

7:20am Thu 26 Jun 14

stewdubs says...

I also would expect the majority of people are sick of being hounded by those offering this scheme with constant door knocks and automated telephone calls. I realise the people knocking doors have a job to do but out of principle I won't take up anything which is sold to me on my doorstep.
I also would expect the majority of people are sick of being hounded by those offering this scheme with constant door knocks and automated telephone calls. I realise the people knocking doors have a job to do but out of principle I won't take up anything which is sold to me on my doorstep. stewdubs
  • Score: 17

7:40am Thu 26 Jun 14

bishop1 says...

stewdubs wrote:
I also would expect the majority of people are sick of being hounded by those offering this scheme with constant door knocks and automated telephone calls. I realise the people knocking doors have a job to do but out of principle I won't take up anything which is sold to me on my doorstep.
me neither , if I want something I go & buy it from wherever I choose rather than from someone knocking on my door .
we looked into the green deal as our boiler is dying slowly & found that it is to pay for over 20 years or so , but apparently the payment is tied to the property rather than the homeowner .
imagine selling a house & having to tell the purchaser that they have another 15 years of payments to make for the boiler that may well not even last that long .
[quote][p][bold]stewdubs[/bold] wrote: I also would expect the majority of people are sick of being hounded by those offering this scheme with constant door knocks and automated telephone calls. I realise the people knocking doors have a job to do but out of principle I won't take up anything which is sold to me on my doorstep.[/p][/quote]me neither , if I want something I go & buy it from wherever I choose rather than from someone knocking on my door . we looked into the green deal as our boiler is dying slowly & found that it is to pay for over 20 years or so , but apparently the payment is tied to the property rather than the homeowner . imagine selling a house & having to tell the purchaser that they have another 15 years of payments to make for the boiler that may well not even last that long . bishop1
  • Score: 15

8:03am Thu 26 Jun 14

Jonn says...

Northcroft wrote:
Homeowners who have managed to subsidise non homeowners for years CANNOT afford to shell out anymore, half of society (the feckless) get everything free, we (Poor homeowners) are getting sick of paying for things.
You are joking right?
Do you remember one of the root causes of the financial crash? Does Mortgage defaults ring a bell, ie 'homeowners'? We are all still paying for that now.
'Half of society get everything free' ? Do you have any evidence to back up that rediculous statement?
[quote][p][bold]Northcroft[/bold] wrote: Homeowners who have managed to subsidise non homeowners for years CANNOT afford to shell out anymore, half of society (the feckless) get everything free, we (Poor homeowners) are getting sick of paying for things.[/p][/quote]You are joking right? Do you remember one of the root causes of the financial crash? Does Mortgage defaults ring a bell, ie 'homeowners'? We are all still paying for that now. 'Half of society get everything free' ? Do you have any evidence to back up that rediculous statement? Jonn
  • Score: 0

8:05am Thu 26 Jun 14

Graeme_r says...

Many people are so strapped for cash meaning that it would be a long time before the savings would begin to off set the loan cost, particularly if a new boiler is included.
Many people are so strapped for cash meaning that it would be a long time before the savings would begin to off set the loan cost, particularly if a new boiler is included. Graeme_r
  • Score: 8

8:18am Thu 26 Jun 14

Ally F says...

Thank you TNE for publishing this story. The minute fraction of Green Deal enquirers actually signing up to the scheme tells you all you need to know about it.

As a Building Services Engineer I and fellow CIBSE professionals have followed the Green Deal since launch with an empty aching feeling in the stomach. Our predictions that this hugely complicated 'green initiative' would prove totally unattractive to householders have become reality. The Government Minister in Charge Greg Barker (DECC) did not listen to good advice when offered to him. Now he presides over a very costly failed initiative, still in denial about the searing reality all around him. This is one turkey flop that the Tories can't blame on Labour.

Worse still, some of the Energy Savings Assessors (who come into your house, survey your property and advise you on energy savings measures) have no formal qualifications or competency other than a mandatory 3-day training scheme that the providers of are doing very nicely out of. It's a tick box exercise based on flawed and over-simplistic computer software. If you need medical advice you see a Doctor, if you need legal advice you see a Solicitor, if you need financial advice you see an Independent Financial Advisor. If you need energy savings advice you see a bloke with 3-days of training who's poor advice could result in homeowners paying back long term loans at 7% APR (14x base rate) for energy savings products fitted to their home that do not actually save them any money.

The UK needs to reduce domestic energy consumption - that's the only way domestic heating bills are going to reduce - the UK needs a simple, subsidised and cost-effective energy savings schemes. The Green Deal is not fit for this purpose. Long-term energy prices are only going one way due to global demand - UK has a huge legacy stock of poorly insulated and poorly built housing that costs far too much to heat.
Thank you TNE for publishing this story. The minute fraction of Green Deal enquirers actually signing up to the scheme tells you all you need to know about it. As a Building Services Engineer I and fellow CIBSE professionals have followed the Green Deal since launch with an empty aching feeling in the stomach. Our predictions that this hugely complicated 'green initiative' would prove totally unattractive to householders have become reality. The Government Minister in Charge Greg Barker (DECC) did not listen to good advice when offered to him. Now he presides over a very costly failed initiative, still in denial about the searing reality all around him. This is one turkey flop that the Tories can't blame on Labour. Worse still, some of the Energy Savings Assessors (who come into your house, survey your property and advise you on energy savings measures) have no formal qualifications or competency other than a mandatory 3-day training scheme that the providers of are doing very nicely out of. It's a tick box exercise based on flawed and over-simplistic computer software. If you need medical advice you see a Doctor, if you need legal advice you see a Solicitor, if you need financial advice you see an Independent Financial Advisor. If you need energy savings advice you see a bloke with 3-days of training who's poor advice could result in homeowners paying back long term loans at 7% APR (14x base rate) for energy savings products fitted to their home that do not actually save them any money. The UK needs to reduce domestic energy consumption - that's the only way domestic heating bills are going to reduce - the UK needs a simple, subsidised and cost-effective energy savings schemes. The Green Deal is not fit for this purpose. Long-term energy prices are only going one way due to global demand - UK has a huge legacy stock of poorly insulated and poorly built housing that costs far too much to heat. Ally F
  • Score: 15

8:47am Thu 26 Jun 14

Gretaandtees says...

Thousands of automated calls effectively asking us if we would like,again effectively,unqualif
ied tradesman to conduct work in our homes. There is the serous thought of repeated reparatory work. Would anyone in Government contract any work for themselves in this manner. What is the Government thinking of,as in do a job properly or not at all.
Thousands of automated calls effectively asking us if we would like,again effectively,unqualif ied tradesman to conduct work in our homes. There is the serous thought of repeated reparatory work. Would anyone in Government contract any work for themselves in this manner. What is the Government thinking of,as in do a job properly or not at all. Gretaandtees
  • Score: 8

9:02am Thu 26 Jun 14

nigel d says...

They say the loan is for approximately 15 to 20 years by the time the loans paid back there's a good chance the boiler would have packed in.I hope I now can have some respite from the ridiculous amount of cold callers and telephone calls.
also when are the solar panel lot going to realise I dont wanr to rent my roof out for years.
there's a old saying my parents taught me, if it sounds to good to be true it probably isnt, and you get nowt for nowt in this world.
They say the loan is for approximately 15 to 20 years by the time the loans paid back there's a good chance the boiler would have packed in.I hope I now can have some respite from the ridiculous amount of cold callers and telephone calls. also when are the solar panel lot going to realise I dont wanr to rent my roof out for years. there's a old saying my parents taught me, if it sounds to good to be true it probably isnt, and you get nowt for nowt in this world. nigel d
  • Score: 10

9:12am Thu 26 Jun 14

RealLivin says...

The whole "green energy" thing is set up so big investors make lots of many not to actually make us "green". I am am just getting my first FIT payment for my solar panels £230 + what went back into the grid, plus my £43 per month saving on my electric bill, I looked at the Green deal and was shocked to find that using this £43 saving to pay off the solar installation would be over 10 years and I would end up paying back more than twice what it cost to install them. I still dont see a lot of new houses with solar a panels on them, which should be mandatory as should ground source heat pumps which my research has show are in excess of 10k to install if you have to bore and I know a lot of houses that dont have the garden space so will need to bore, plus the cost of converting and radiators to under floor heating. I f the government are serious about energy saving and reducing bills then they need to force these issue son new houses and help out the home owner not the investor by subsiding installation and re doing the FIT by only paying your for the energy you pump back into the grid at the rate it costs to buy it back or give you the option to bank your energy for the winter. I purchased my panels but I know a lot of home owners who have gone down the "free" option because they dont have the money to install and are only actually interested in reducing there energy costs (echo feature June 5th the energy issue was good). Surely it would be cheaper for energy companies to install "free" panels on roofs than build expensive power stations (we would still need power stations but may be not as big and costly) and our farms lands can be used to grow food not as solar/wind farms for investors to get rich while energy companies increase prices to pay the FIT tariffs. If this is not sorted we will end up with two tier energy users, those who can invest and are able to reduce their costs and those who cant and will never be able to as they will be stuck in the ever increasing energy costs cycle. Green should mean energy efficient, production efficient and financially efficient, most are currently one out of three.
The whole "green energy" thing is set up so big investors make lots of many not to actually make us "green". I am am just getting my first FIT payment for my solar panels £230 + what went back into the grid, plus my £43 per month saving on my electric bill, I looked at the Green deal and was shocked to find that using this £43 saving to pay off the solar installation would be over 10 years and I would end up paying back more than twice what it cost to install them. I still dont see a lot of new houses with solar a panels on them, which should be mandatory as should ground source heat pumps which my research has show are in excess of 10k to install if you have to bore and I know a lot of houses that dont have the garden space so will need to bore, plus the cost of converting and radiators to under floor heating. I f the government are serious about energy saving and reducing bills then they need to force these issue son new houses and help out the home owner not the investor by subsiding installation and re doing the FIT by only paying your for the energy you pump back into the grid at the rate it costs to buy it back or give you the option to bank your energy for the winter. I purchased my panels but I know a lot of home owners who have gone down the "free" option because they dont have the money to install and are only actually interested in reducing there energy costs (echo feature June 5th the energy issue was good). Surely it would be cheaper for energy companies to install "free" panels on roofs than build expensive power stations (we would still need power stations but may be not as big and costly) and our farms lands can be used to grow food not as solar/wind farms for investors to get rich while energy companies increase prices to pay the FIT tariffs. If this is not sorted we will end up with two tier energy users, those who can invest and are able to reduce their costs and those who cant and will never be able to as they will be stuck in the ever increasing energy costs cycle. Green should mean energy efficient, production efficient and financially efficient, most are currently one out of three. RealLivin
  • Score: 4

8:47pm Thu 26 Jun 14

Nicholas_Till says...

If they had stuck to posting me an occasional letter or flyer, my attitude to these people would be kinder than it has now become.

As it is, having been constantly pestered by their voice-over calls at a rate of sometimes more than one a day for a long time now, I'll be glad if they go out of business or get stood down.
If they had stuck to posting me an occasional letter or flyer, my attitude to these people would be kinder than it has now become. As it is, having been constantly pestered by their voice-over calls at a rate of sometimes more than one a day for a long time now, I'll be glad if they go out of business or get stood down. Nicholas_Till
  • Score: 2

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