An interesting little point we can glean from this victory story concerning the effects of a Green New Deal. It’s an entire and total waste of money. There is simply no way at all that this makes any economic nor financial sense – we’d do better to be tearing up pound bills in the currently warming oceans.
But this is what is being called a victory![perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””] A Dutch approach to transforming old homes through a dramatic green makeover has arrived in the UK and cut tenants’ energy bills in half. Nottingham has become the first city council to pioneer the “Energiesprong” (energy leap) initiative, which has radically upgraded the energy efficiency of thousands of homes in the Netherlands. More than 150 social housing homes in Nottingham will receive new wall cladding, windows and solar panels after the local authority won £5m from the EU’s European Regional Development Fund. Some tenants in homes already refurbished in a pilot scheme have seen monthly energy bills drop from about £120 to £60-£70. [/perfectpullquote]
So, note we all pay taxes so that these people may save money on their energy bills. Aren’t we the lucky ones. We could crunch those numbers and say that it costs some £33,000 per property, But that would be to underestimate:[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]Costs are relatively high, at £85,000 per property initially but are expected to fall to £62,000 by the end of the programme.[/perfectpullquote]
We’re talking about a £60 a month saving on the energy bill. Even that lower £60k-ish number means a century as payback time, the higher current cost getting on for a century and a half. And no, none of these buildings will last that long. That is, the energy savings will never, ever, recoup the cost of the alterations.
It’s a giant splurging waste of money and economic resources that is.[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””] “Energiesprong is great, a gold standard – it should be pursued wherever possible for low carbon, low energy bills and high-skilled jobs,” said Pedro Guertler of environmental thinktank E3G. He added that Nottingham city council is a leader, but most austerity-hit councils no longer had the capacity to lead such work. The Treasury should increase energy efficiency investment by £1bn a year, he urged. [/perfectpullquote]
But Pedro thinks we should spray even more of our money on making ourselves poorer in this manner. Well, that’s nice for Pedro, isn’t it? Less so for all of us.