The number of homes installing cavity wall insulation has reduced dramatically since the introduction of the Green Deal
The government’s flagship energy efficiency scheme was expected to boost insulation installations but recent figures have shown a dramatic decline since the scheme was introduced in January.
The number of homes installing cavity wall insulation has reduced by 97 per cent in April when compared with the same month last year.
Figures released by the Cavity Insulation Guarantee Agency (CIGA) show that just 1,138 installations took place during April 2013, down from 49,650 in April 2012.
Gerry Miller, chief executive of CIGA said: ‘CIGA is cautious about forecasting activity levels at this stage as not all the figures are in but early indications are that activity in Quarter 1 2013 was at least 60 per cent down on the prior year, which is very concerning for our members and our industry.’
A spokesperson from DECC commented: ‘The Government’s ambition for the Green Deal goes further than the old system of loft lagging and cavity wall insulation paid for by levies on everybody’s bills. In tough economic times it simply doesn’t seem right that the Government should promote indiscriminate subsidy for easy to do measures that pay for themselves when there are bigger, tougher challenges where subsidy is needed more.
‘The reason the market is shrinking is the opposite of failure. There are now fewer than one million standard cavities left to treat thanks to schemes like CERT which heavily subsidised this activity, treating over 2.5 million cavities since 2008. Those jobs remaining are harder to treat and more expensive to reach.
Under previous schemes cavity wall insulation was either heavily subsidised or free, but under the Green Deal, householders have to take out a loan to pay for the upgrades to their properties.
The carbon emissions reduction target required energy companies to insulate a certain number of homes, and therefore many households received free cavity wall insulation. But in December this scheme was discontinued in preparation for the launch of the Green Deal and the Energy Company Obligation.