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Why did the Green Deal Fail?

Even our own Green Deal assessors noticed the uptake was very slow.  The main green deal work coming from people seeing it as a opportunity for a new job, maybe following the solar PV fit tariff subsidy cuts!

It was too complex, with excessive paperwork, while people were also put off by interest rates of up to 10% on the loans - far more expensive than other lending, the report said. Why pay 10% when you could often get a personal loan from 4-5%

Marketing also focused on the financial benefits of installing energy-efficiency measures, rather than emphasising the comfort of having a well-insulated, energy-efficient home, which may have interested more people,


Why didnt we just copy successful scheme such as those in Germany which offered very low rate loans to get energy efficiency improvements done, such as around 2-3% loans. This means that the energy improvements could effectively be done for free as the cost of the loan and the improvements would be paid for by the energy savings themselves.

The Department for Energy spent £240m on the scheme, including £25m in loans to the Green Deal.

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