The Energy Bill 2010 – Making Britain’s Homes Green
The new Prime Minister, David Cameron, has recently pledged to make this “the Greenest Government ever”, stating that “It’s a very simple ambition and one I’m absolutely committed to achieving”.
Whilst it may be a very simple ambition, it is a very ambitious task. The Energy Bill 2010 will strive to secure the UK’s energy supplies by legislating to promote low carbon energy production and to help homes and businesses improve their energy efficiency. The Government has announced that the main aim of the Bill is “to provide a step change in the provision of energy efficiency measures to homes and businesses. It is also to put in place a framework to deliver a future with secure, low carbon energy supplies and fair competition in the energy markets”.
Heat escapes from most homes in the UK at an extremely fast rate. Although new-build homes are becoming more efficient, much more will need to be done to meet the UK target of cutting carbon emissions by 80% by 2050, as set out in the Climate Change Act 2008. It has been estimated that, to achieve this target, about 600,000 existing homes per year will need to be refurbished to a high level of energy efficiency over the next 40 years (ENDS Report 423, p.36). The Coalition Government plans to implement a ‘Green Deal’ to encourage energy efficiency home improvement measures to be made to houses and pledges to take measures to improve energy efficiency in businesses.
The Coalition Government has also pledged to cut carbon emissions from central Government by 10% over the next year. Members of the public will be able to hold Ministers and Civil Servants to account if these targets are not met, with each department HQ’s energy consumption being published online.
Domestic and business energy consumption is continually growing, mainly as a result of increasing reliance on technology and household appliances, and the expansion of the digital entertainment industry. Cutting these emissions will be a monumental challenge for the Coalition Government. But although the challenges will be great, the potential is even greater. Upgrading homes and businesses will potentially create more jobs, not only by increasing the number of people required to install the improvement measures but also by employing more people to advise homeowners wishing to upgrade to a more energy efficient home.
The Coalition Government is committed to the introduction of ‘Green Loans’ to enable homeowners to finance these improvements. The rationale behind the plan is to help overcome the financial barriers met by those wishing to make their homes more energy efficient. The initiative will help fund improvements such as better insulation, double glazing and solar panels, with priority given to those on lower incomes and the most vulnerable. Loan repayments will be linked to the property rather than the individual and as such, will not force a seller to repay the loan before selling the house.
Loans will be repaid from savings made on energy bills, with some energy improvements saving the homeowner up to £380 per year. The loans will also be repaid in instalments that are lower than the savings made on energy bills – calculations suggest that homeowners installing solar panels to a three bedroom semi-detached house would be £170 better off each year, despite having to pay back the loan.
All of this is part of a long term commitment to make the UK more energy efficient and reduce greenhouse gas emissions. Housing currently accounts for 25% of the UK’s greenhouse gas emissions, and the Coalition Government hopes that its Energy Bill 2010 will lay down ambitious plans to substantially reduce this.