On October 2012 The Green Deal is scheduled to begin throughout the UK. It is a very ambitious government initiative that will revolutionize energy efficiency in the housing stock whilst generating a positive attitude towards the need to preserve and seek alternative means of powering both homes and businesses alike. The impact of  The Green Deal on UK climate change will substantially reduce UK carbon emissions, under it’s own legal obligations under the Climate Change Act 2008.

The Green Deal

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The Green Deal Scheme (as provided for by the Energy Act 2011) will operate to allow bill-payers a up to £10,000 to implement energy efficient measures in the home. The grant is repayable from the savings made by implementing the “recommended” measures. In essence the bill-payer does not see a reduction in his energy costs, but will enjoy a much warmer and cosier winter. Furthermore, the repayments are tied to the building and not the person. That, in a nutshell, is the government Green Deal insofar as the building occupier is concerned.

All assessments for financing will be subject to what has been termed, “The Golden Rule”. Put simply, it means that the repayments should not be more than the estimated savings to be made or have a term that is longer than the lifetime of the work undertaken. This is purely a guideline set by the government so that customers will not end up paying out more for the energy than before the work had been carried out.

The impact is set to spread far an wide across the UK as demand for most building trades will increase dramatically thereby creating “green deal jobs” with thousands of registered green deal installers required to fuel the demand that will be generated once underway. To become a green deal installer you will need to be approved by the DECC (Department of Energy and Climate Change) who give strict guidelines, including guarantees that must be given by all their approved installers.

We may yet see climate change in the UK improve dramatically under this new scheme as carbon emissions reduce. Subject to assessment, you may also have solar panels installed on your roof which will also contribute to the energy efficiency of the home.

4 Response to The Green Deal

  1. Paul on February 16, 2012

    Protecting Customers’ Interests.

    Skepticism over the Green Deal scheme points out that although it’s a government initiative the scheme itself is basically a commercial venture. Although good for the government’s reputation where does it leave the consumer in terms of protection against some of the more unscrupulous providers!

    Even with the best intentions, things can go awry and it will be the consumer who will have to face the ultimate consequences. However, according to the DECC, systems will be put in place to safeguard the consumer and hold responsible errors brought about by “unfair dealings” from the various agencies that will be involved with the Green Deal.

    The DECC has put forward a catalogue of mechanisms of redress should things go wrong for the consumer. These include:
    Independent advice via a dedicated call center and website;
    Practices on how the Green Deal is sold.
    Assessors will be approved and regulated to deter mis-selling
    The existing legislation on unfair practices, consumer credit etc. will also cover Green Deal activities.
    The usual consents are to be obtained, such as local authorities etc.
    the highest standards must be met by all operatives, as re-training in some areas is required.
    A stringent Code of Practice must be adhered to by those at all levels of the process.
    Prior to any charges being collected there must be a clear understanding and confirmation of such by the consumer.
    Charges are to be collected in with the electricity bill and regulated by Ofgem;
    A procedure to follow when properties that have undergone improvements under Green Deal change hands to ensure incoming occupants are made fully aware of the implications and responsibilities;
    Finally, under certain situations a Green Deal plan may need to be settled earlier and customer should be made fully aware of this should this situation arise.

    The way the government had been promoting the Green Deal one would have believed that grants were available, albeit having to be repaid. However, financial institutions will be making the loans available.

    The safeguards seem as good as one might expect and should provide confidence to ensure the Green Deal’s success.

  2. Paul Fletcher on May 12, 2012

    ReEnergise pledges to find hard-to-reach finance for green firms
    Dedicated renewable finance brokerage reveals it is poised to launch domestic offer for Green Deal

    A newly formed green energy broker designed to help businesses fund small-scale renewable energy projects has revealed it is weeks away from launching a domestic offer as part of the government’s Green Deal energy efficiency loan scheme.

    Surrey-based consultancy Energizer Group yesterday officially launched Energizer Finance, a dedicated brokerage that aims to help organizations struggling to secure bank finance for renewable and energy efficiency measures.

    It aims to raise finance from a growing list of 10 non-mainstream banks that it can channel to companies seeking loans of between £75,000 and £5m for green improvement projects.

    Adam Hewson, a former GE banker, who is now director of ReEnergise Finance, said lack of access to bank loans was the single biggest problem affecting the UK’s emerging renewable energy and microgeneration sector.

    He told BusinessGreen that the company is already working on six projects, including two biomass installations costing up to £300,000, an anaerobic digestion project worth around £1m, and some large-scale photovoltaic installations.

    He added that ReEnergise has also formed a partnership with Panasonic Europe’s solar division to help clients of the electronics giant access loans.

    Hewson said ReEnergise was primariliy a broker but had developed green energy expertise to ensure it secures the best deals for its finance providers.

    “In an environment where banks are restricted and reluctant to lend against what is perceived as new technology, there is increasingly a need for a specialist intermediary, in particular for commercial projects under the £10m mark,” he said.

    “In reality, finance is available in the UK for renewable energy; the trick is finding it and working with a partner that will get you the right deal. Government schemes are available but you have to have already invested in energy efficient equipment to qualify. We’re offering businesses the chance to do that, which we see as the final piece in the energy puzzle.”

    He also revealed that ReEnergise is planning to launch a domestic finance offer in June ahead of the launch of the government’s Green Deal loan scheme. The company plans to become a Green Deal provider responsible for both identifying finance for households and arranging energy efficiency improvements.

    Hewson admitted that some of the finer details of the scheme had yet to be decided, including how to determine the period over which homeowners will be required to pay back loans.

    However, he countered recent reports suggesting the Green Deal’s October launch could be facing delays.

    “The reports of delays are spurious,” he said. “Many people just don’t understand how big it is. They think it’s going to be like the feed-in tariff where you just switch it on and people will sign up.

    “It will be launched in October, and will start to get people involved but it’s going to be an evolutionary process which could take a long time to scale up.”

  3. Paul on August 8, 2012

    Just found a group on Linkein that specialises on the Green Deal.

    Looks good and full of info. See it here: http://www.linkedin.com/groups/GREEN-DEAL-DEVELOPMENTS-4505501?report.success=78SkroH7IWfMn0aJK-N_kyozjPc00YdXbZFFCtpAsPcT0-IXiVFFyHXG84mJlxPq4FU5_D

  4. » The Green Deal on July 5, 2013

    […] about it, or so it seems. In a way it’s quite admirable how they have managed to organise the Green Deal whereby they can take all of the credit whilst passing the job on to commercial interests to not […]

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