A Pilot Scheme testing the principles of the Green Deal flopped when 47% of the entire test group made the decision to opt out before taking up the opportunity to upgrade their homes.

The Green Deal, initiated by the Labour government, has been taken forward by the coalition and and sets out to encourages home owners and businesses to upgrade their buildings reducing  energy and CO2 emissions at no upfront cost. Repayments will be generated through the saving made on energy bills.

The Pilot scheme , run by B&Q, in conjunction with consultants BioRegional, took place in the London Borough of Sutton and was carried out in 2010 and 2011. It differed slightly from the government scheme as the “Pay as you Save” Pilot  attached the loan to the customer rather than to the energy meter.

Of the 400 households interested, 126 went on to accept an energy audit as the initial part of the scheme.  Analysis of the results showed that only 67 (53%) households took up the scheme incentive payments even though most were not motivated by any financial incentive. In fact only 39% opted for the best value payback period offered by the scheme.

 Over 30% of participants made the decision to opt for the longest pay back period which meant repayments would actually exceed fuel bills!

Many in the scheme chose to invest more on improvements averaging £13,000 which exceeded the expected figure by around £3000.

A DECC spokesman highlighted the keen interest in the scheme from householders although the pilot, in testing some of the some elements of the scheme, did not reflect all of what the scheme will offer. A key feature, where costs can be passed on when people move home, can only be possible when legislation is passed.