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UTILITY WEEK | OCTOBER 2020 | 19 Policy & Regulation Analysis A ugust was "Eat Out to Help Out" month. As the autumn evenings draw in, the government will be hoping that October will be energy efficiency month in UK households. Since the end of last month, household- ers have been able to apply for help via Green Homes Grants, the £2 billion-worth of energy efficiency vouchers unveiled by chan- cellor Rishi Sunak in his summer statement. Under the scheme, the typical owner occupier or landlord will be able to secure up to £5,000 towards the cost of installing energy efficiency or low carbon heating. Big- ger handouts of up to £10,000 will be avail- able for poorer households, which includes those on benefits and universal credit. The guidance specifies that in order to qualify for grants, households will need to install at least one "primary measure", which it specifies are insulation, heat pumps or solar thermal devices, in order to ensure that the cash isn't used for cosmetic projects. The grants, which are the centrepiece of the government's package of green measures to help stimulate the UK's coronavirus ravaged economy, must be spent by March. In addition to the Green Homes Grants, £500 million has been allocated to two local authority schemes. Of this amount, £200 mil- lion is earmarked for so-called shovel ready schemes that councils can implement imme- diately. The remaining £300 million, which will be allocated to planned local energy hubs, can be spent next year. David Blakemore, chair of the Committee on Fuel Poverty, says any concerns about the detailed design of the new scheme must be seen in the context of the emergency condi- tions surrounding its launch. "We have to be a little pragmatic. As well as saving carbon, the objective is to get feet on the ground and installations going as soon as possible," he says. Peter Smith, director of policy and research at National Energy Action, estimates that around half of the sums announced will end up benefiting fuel poor households. "If you targeted the whole programme on low income households, you would struggle to spend the money quickly." But the short timeframe for getting money out the door could prove a headache, he says: "It's going to be challenge to deliver that investment in that short a time." James Griffiths, energy efficiency policy officer at the Association for Decentralised Energy, says not all the money has to be spent this year, pointing to the £300 million allocated to local energy hubs. "Some funding won't necessarily be spent in the 2020/21 financial year and will spill over, which gives the supply chain a bit more security. Public sector projects can plan for a couple of years so there is a bit more cer- tainty," he says. Working alongside ECO For energy suppliers, one of the key ques- tions will be the knock-on effect the new grant scheme will have on the Energy Com- pany Obligation (ECO) scheme, through which they funnel £700 million per annum Energy suppliers could face more compe- tition for installers' services to deliver ECO measures from households taking advantage of the new grants. However, even if there is a short-term dip in work being delivered through ECO, Griffiths is not worried. "When this [Green Homes Grants] finishes, suppliers can turn their attention back to ECO." In a bid to avoid double-counting, whereby ECO suppliers could claim credit for work subsidised by Green Homes Grants and vice versa, it won't be possible for the two schemes to co-fund individual measures, like energy efficient doors or insulation. "The concern is that ECO obligations shouldn't be circumvented by the use of Green Homes Grants, so you can see logic for keeping the two separate," says Blakemore. However, the rules state that two separate measures within the same property can be funded from both schemes. "Through sensi- ble co-founding you could make a real dif- ference. The combination of the two could make a real dent on the hardest to treat and lowest income properties," says Smith. However, to give the energy efficiency supply chain the confidence to invest and take on new staff, the government must ensure that Green Homes Grants do not prove a one hit wonder, says Blakemore: "The fear is of gearing up and 12 months later it all drying up again." He says Sunak must use the compre- hensive spending review, the multi-year and pan-government exercise pencilled in for later this autumn, to show how he will implement the government's manifesto com- mitment to spend £7.5 billion on energy effi- ciency during the current parliament. Simon Markall, head of public affairs and engagement at Energy UK, agrees. "The real question is longer-term funding. We only have funding for one year so far. It is impor- tant that money remains available for the rest of this parliament and beyond." The £2 billion is a supplement rather than a replacement for the energy efficiency pro- grammes pledged last year, says Blakemore: "The important message from committee to BEIS [the department of Business, Energy and Industrial Strategy] is that this is not a substitute for what we require." While Green Homes Grants are a hugely welcome fillip for energy efficiency efforts, many in the industry will be hoping that it is an appetiser rather than the whole menu. David Blackman, policy correspondent Green homes cash boost In October the government's Green Homes Grants scheme starts, which it is hoped will get the home energy efficiency market moving. At least that's the plan, says David Blackman.