Green Deal Watching Brief Part 2 Inquiry from Parliament’s Energy and Climate Change Committee

ARLA has supported the concept of the Green Deal since it was first announced in the Coalition Agreement. We have been involved in numerous Working Groups and forums established by the Department for Energy and Climate Change (DECC) that have advised on the development of both the primary and secondary legislation as well as the implementation of the scheme.

The Green Deal is the first energy efficiency scheme which has overcome the ‘Split Incentive’ (the landlord pays and the tenant benefits). ECO is also the first subsidy scheme which largely focuses on the property rather than the occupier; especially the Carbon Emissions Reduction Obligation (CERO). This is particularly important as it is the property owner’s responsibility (the landlord) to maintain and improve the fabric of the building and yet most previous schemes have focused funding on the occupier (the tenant) who has no responsibility in this regard.

Therefore, when combined, the Green Deal and ECO have the potential to be very successful in the private rented sector. However, we are becoming increasingly concerned that the complexity, delays, legal errors and negative media are having a significantly detrimental impact on the future success of the scheme; particularly for the private rented sector.

The full consultation can be found here.