Leeds set to bring £80m Green Deal programme to market

A group of councils across the Leeds city region will go to the market next month with a Green Deal retrofit programme worth at least £80m over the next three years.

Leeds city region has agreed to go ahead with the procurement for providers for its Green Deal programme, which will aim to retrofit of homes across Leeds and ten neighbouring council areas.

Leeds city region said it would go to the market next month through the OJEU process.

Colin Blackburn, Leeds council housing and regeneration lead, said the contract would be three years, with the possibility of an extension to eight years and is expected to be worth £80-£100m.

The city region anticipates a minimum of 12,000 homes to be retrofitted over the initial three year period, which is around 2.8% of the total housing stock.

However the value of the programme is likely to increase, as the the city region has identified around 450,000 homes, out of a stock of 1.2 million, which have been designated the “easily accessible market” and therefore ripe for energy efficiency improvements. The city region estimates that retrofitting these 450,000 homes could bring £5bn into the economy over the next 25 years.

Leeds city region comprises Barnsley, Bradford, Calderdale, Craven, Harrogate, Kirklees, Leeds, North Yorkshire, Selby, Wakefield and York councils.

But the city region partners are also inviting other councils across North Yorkshire to join the scheme, as well as registered housing providers, in a bid to maximise the value of the programme to the industry.

The £80m fund is made up of £20m from the energy company obligation (ECO), which is a levy on fuel bills to subsidise improvements to the homes of poor or vulnerable people and properties needing measures that cost more than they will save in energy costs, particularly solid wall insulation.

The other £60m comes from the loans householders will take out with the Green Deal Finance Company.

Birmingham and Newcastle city regions have already developed Green Deal programmes, with Birmingham appointing Carillion Energy Services to provide Green Deal improvements to homes in the region in a deal worth up to £1.45bn.