Council tax adjustments should be used to 'revive' the Government's Green Deal, which has been a 'disappointing failure' since its launch - MPs have said.
Ministers were this morning called on to 'experiment' with variable local levies and stamp duty discounts, which could 'encourage more homeowners and households to improve the energy efficiency ratings of their properties'.
The Government's flagship Green Deal strategy was designed to help individuals and businesses install energy efficiency improvements to their buildings at little or no upfront cost.
However a report from the Energy and Climate Change Select Committee said 'high interest rates' and a 'confusing' communication strategy had seen the scheme delivering 'a fraction' of expected benefits.
Committee chair, Tim Yeo, said: 'Stamp duty discounts and variable council tax rates could be used to broaden the appeal of energy efficiency improvements and make them even more of a money saver for households. Extra incentives certainly need to be considered.'
John Alker, director of policy and communications at the UK Green Building Council - which has long called for reduced council tax rates to encourage energy efficiency - said: 'Energy efficiency is too great an untapped opportunity for this message to fall on deaf ears once again. Government needs to treat energy efficiency as a national infrastructure priority, which means a long-term programme of incentives and support, enabling the private sector to get on and deliver lower bills for householders.'
Responding to the report, energy and climate change secretary Ed Davey said: 'We share the committee's ambition to drive a step-change in home energy efficiency - helping to cut carbon emissions and control energy bills.
'Our target is to improve the energy efficiency of one million homes by March 2015 - and we're on track.'
