The Clean Growth Strategy (CGS), published in October 2017, sets out a number of policies and proposals to encourage home energy efficiency installations including;
- A £6 billion package to help end fuel poverty and drive innovation in energy efficiency. Government recently launched a consultation focussing on 100% of the £640m per year ECO scheme on the fuel poor which would see energy saving improvements like insulation and modern efficient heating systems installed in 900,000 homes by March 2022. The government also committed to maintaining funding for home energy efficiency until at least 2028 as part of the Clean Growth Strategy
- Seeking evidence on building a market for energy efficiency, including additional measures to improve the energy performance of owner occupied homes through a Call for Evidence. The Call for Evidence explored a number of potential policies including fiscal incentives for energy efficiency, price signals to reward more efficient properties, and new incentives for network companies and mortgage lenders. The consultation period closed on 9th Jan 2018. Following an evaluation of responses, the government will put forward a plan of action for the years to come, later in 2018.
- Working with mortgage lenders to incorporate energy efficiency into their lending decisions, alongside developing innovative “green mortgage” products. BEIS and HM Treasury ministers jointly set up a Green Finance Taskforce, which brought together senior leaders from the finance sector. Their objectives were to help deliver the investment needed to meet the ambitions and commitments set out in the CGS, whilst consolidating the UK’s leadership in financing international low carbon investment. The Taskforce recently published their recommendations, including how to encourage development of green mortgage products. The government is currently considering these recommendations and will respond in due course.
- As a response to the Taskforce’ recommendations and following the success of their Green Bond, launched in November, Barclays are the first major lender in the UK to launch a green mortgage product which will reward homebuyers who choose to buy an energy efficient new build home with a lower interest rate on their mortgages. This is an encouraging step and we hope other lenders will follow suit.