The main driver for improving the energy efficiency of buildings is the Carbon Emission Reduction Target (CERT), which places a legal obligation on energy companies to reduce CO2 emissions. If energy companies don’t hit their targets, Ofgem has the power to fine them upto 10% of their turnover.
The CERT finishes at the end of 2012, and will be replaced by the Energy Company Obligation (ECO) and the Green Deal. It is crucial to see at this moment more details about how homeowners will be incentivized to green their properties. If the right combination of carrots and sticks are not in place the Green Deal may not work for consumers, the government of industry. Upgrading thermal efficiency of properties through loft and cavity wall insulation is the easiest and cheapest way of reducing energy use.
In a recent report to the government, the commission for climate change recommended that the Green Deal and ECO were aligned with the ambition to insulate all lofts and cavity walls by 2015, as well as 2 million solid walls by 2020. In order to achieve this broader incentives must be put in place, such as stamp duty reductions, council tax benefits or changes in VAT.
