Accelerating payments is top of the improvements proposed by installers of eligible technologies to save the government’s Green Homes Grant Scheme.
Trade bodies representing installers have jointly published suggestions to speed up the programme.
A cross-industry survey supported claims that administrative delays are to blame for vouchers and payments not being issued. To date only 20,000 vouchers and even fewer payments have been made despite more than 100,000 applications.
The scheme has been criticised for being overly slow, causing damage to the industries it was designed to help and, most recently, came under fire for not rolling over the underspend from this to the next financial year. The scheme has been extended beyond its original deadline because of delays issuing vouchers but underspend from the £2 billion stimulus programme will not be allocated to next year.
Improvements were proposed by the industry bodies behind the survey – Microgeneration Certification Scheme, Solar Energy UK, Renewable Energy Assurance and the Home Insulation and Energy Systems Quality Assured Contractors Scheme:
- Immediate acceleration of payments and processing of vouchers to address installers’ cashflow concerns and increase pace of installations for consumers
- A greater administrative role established for the Microgeneration Certification Scheme, which has the expertise and existing relationships with installers, auditors and established consumer bodies in the zero-carbon home retrofitting market
- Greater transparency of the auditing process – particularly the cost criteria of products and installation works should be made visible
- A commitment in the upcoming budget to use all of the underspent 2020/21 budget in future years through a longer-term programme of zero-carbon retrofitting until the end of this parliament, applying lessons learned from the successful Local Authority Delivery scheme
The industry survey found 73 per cent of responders have completed work under the GHG and the remaining cited concerns with the programme’s operation for not participating. Those that have not taken part said they want to see improvements to payments before getting involved.
More than three quarters (76 per cent) of installers that are using the GHG expressed concerns about the time it takes to receive voucher payments.
Delays to payments are threatening the viability of 35 per cent of businesses of the installers surveyed.
More than half of the companies hired new staff in expectation of the GHG generating more work, however a third of those said they would be unlikely to retain the new recruits unless the flow of payments was significantly improved.
A further fifth (17 per cent) said they already let new hires go.
Solar Energy UK chief executive Chris Hewett said: “We are keen to see the Green Homes Grants scheme made a success. The government needs to work with industry to make the process simpler and clearer for installers and consumers alike. Payments for completed work must be made without further delay, and any unspent funds recommitted in following years. If this government is serious about driving a green economic recovery it has to put its money where its mouth is.”