During November 2011, a consultation on the Green Deal was published as part of the Energy & Climate Change Annual Energy Statement to Parliament.
It was announced that there will be £14 billion worth of private sector investment in home energy improvements over the next 10 years.
The consultation on the Green Deal which was published by the Energy and Climate Change Secretary, Chris Huhne, will provide home energy saving upgrades to householders at no upfront costs.
Chris Huhne said, “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.”
By the end of 2011, household electricity prices will have increased by around 16% on average and household gas prices have increased by 25% since the start of the year which has been mainly due to the rise in global fossil fuel prices. Over the past year alone, the global gas price has increased by nearly 40%.
Chris Huhne continues, “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.”
The Green Deal will be launched in October 2012 which will see homeowners benefit immediately from installing insulation and other energy saving technologies at no upfront cost. Repayments will be made over time from the energy savings.
Also, a new requirement that energy companies will provide £1.3 billion a year to ensure all homeowners will be able to benefit from the Green Deal. Up to £150 in cash back could be made available for homes taking out the Green Deal which will be funded through private sector Green Deal finance.