BRIDGEND: Cutting VAT on refurbishment work will kick-start the Green Deal programme says Hans Schreuder, Rockwool managing director.
Mr Schreuder said: "The whole Green Deal programme is potentially a massive new market but it will need something to kick-start it."
He wants tax breaks and incentives tied to the use of approved installers to stop cowboys cashing-in on the initiative.
The Green Deal will give homes and businesses cash up front to improve buildings with the cost being recouped via lower energy bills.
The Confederation of British Industry (CBI) is backing the plan but has reservations over how it will work in practice. Dr Neil Bentley, CBI deputy director-general, said: "The Green Deal is a good idea, but risks becoming a lame duck unless the government tackles the big questions of financing and uptake.
"The government faces an uphill challenge convincing home owners to sign up to the Green Deal, given that three-quarters admit they don't consider energy efficiency when looking at a property."
Initiatives like the Green Deal will see the balance of Rockwool's turnover shift to see refurbishment work account for more than 50% of business for the first time.
New contractors are entering the energy efficiency market and Schreuder believes more will follow. "We have seen deals recently like Carillion's move for Eaga and British Gas buying contractors. That trend will only grow because everyone sees the potential in the market," he said.
