The Sustainable Energy Association (SEA) has developed a new proposal for a policy which can unlock greater investment in energy efficiency. This policy aims to incentivise energy bill savings by rewarding in-use performance of energy efficiency measures, in place of the current approach of up-front payment that features in the Warm Homes Social Housing Fund, the Warm Homes Local Grant, the Energy Company Obligation, and the Great British Insulation Scheme (GBIS).

The proposed Energy Efficiency Incentive will develop a predictable revenue stream for potential investors, as seen in other successful policies such as Contracts for Difference or Feed in Tariffs. The Incentive will also develop an offering for underserved market segments, particularly the able-to-pay and private-rented sectors, alongside tackling fuel poverty. The revenue-based nature of the incentive also lends itself better to those consumers who may not qualify under current scheme eligibility criteria, but who are nevertheless unlikely to be able to afford the up-front cost of many fabric energy efficiency measures.