Steven Heath: Green Deal is a grave concern for insulation providers.

Insulation industry shaken by government's Green Deal

Published:  30 November, 2011

MERSEYSIDE: Fears over the negative impact of the Green Deal on the insulation industry have been confirmed this week by official government statistics, according to Knauf Insulation, provider of insulation products for the residential and commercial property sectors.

Loft and cavity wall insulations are expected to fall from 800 000 in 2012, the final year of CERT, to approximately 110 000/year under the new Energy Company Obligation (ECO) and Green Deal landscape.

The figures, released under DECC's Green Deal impact assessment this week, represent a fall of over 86% and could have a devastating impact on the loft and cavity wall insulation market.

This will be despite that fact 10 million lofts and six million cavities nationwide still require insulation. It will, said Steven Heath, external affairs director of Knauf Insulation, adversely affect the industry's ability to help energy suppliers deliver their carbon reduction commitments. The dramatic fall will also hinder hard-working households' ability to reduce their winter fuel costs.

"The predicted fall should be of grave concern to the insulation and construction industry and one we should collectively voice our concerns over to the Government.

"There needs to be a sensible, effective transition to the Green Deal over the next five years, allowing us to service those households still in need of loft and cavity wall insulation while preparing for the predicted shift to solid wall Insulation, which retains its subsidy under ECO. We urge the Government to rethink its transition to the Green Deal if the countless jobs and businesses reliant on loft and cavity wall insulation are to remain in existence."

Knauf Insulation argues that a revised Green Deal will result in efficient, thriving insulation and construction industries. Key to this success will be the inclusion in the Green Deal of financial incentives such as a council tax or stamp duty rebate for homeowners insulating their properties.

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