October 2014

Eunomia to Review Green Deal In-use Factors

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Eunomia has been appointed by the Department of Energy and Climate Change (DECC) as part of a consortium to review the Green Deal in-use factors (IUFs).

The project will examine the evidence and the methodologies underpinning the IUFs and make recommendations on the IUF levels for energy efficiency measures available to UK households under the Green Deal and Energy Companies Obligation programmes.

Homeowners can apply for Green Deal finance to install energy efficiency measures including insulation, heating, draught proofing, double glazing and renewable technologies such as solar panels and heat pumps. The IUFs are applied as part of the Green Deal ‘Golden Rule’ calculation, which determines the amount of Green Deal Finance that the householder can secure, and it is therefore very important that the IUFs are accurate, provide a balance between commercial viability and consumer protection and are robust to scrutiny.

In partnership with Bristol-based low carbon organisations Sustain and the Centre for Sustainable Energy, we will review the IUFs for the 29 (soon to be 35) eligible Green Deal measures. Eunomia’s role will be guided by the Civil Service Rapid Evidence Assessment (REA) methodology. Eunomia will be responsible for developing the REA methodology, carrying out the synthesis of findings, providing quality assurance on the recommendations to DECC, and undertaking a gap analysis to inform future IUF reviews. The review is due to be completed by April 2015, although any proposed changes to the IUF system may be subject to consultation.

Eunomia Senior Consultant Rob Reid said,

“We recognise that energy prices are rarely out of the spotlight, so it is very important that policies such as the Green Deal and the in-use factors that underpin the financing of energy efficiency measures and renewable energy technologies are as accurate as possible. This will provide UK householders with confidence that their investment in Green Deal measures results in expected energy savings and not increased fuel bills. It also provides us with the opportunity to collaborate with other highly skilled low carbon organisations located in Bristol, demonstrating the combined strength and depth of our capabilities in the South West.”

Building upon Eunomia’s other recent successes in winning DECC projects, this provides another example of Eunomia’s growing role in the energy efficiency market.

Further information on the Green Deal is available here.