What is the Green Deal and who will it benefit??

What is the Green Deal and who will it benefit??

The Green Deal was introduced to Parliament on the 8^th December 2010 as part of the Energy Bill. It is intended to

The aim of the Green Deal is to offer consumers energy efficiency improvements to their homes, community spaces and businesses at no upfront cost. Instead, businesses will provide the capital, getting their money back via energy bills. Companies such as Marks & Spencer, B&Q, Tesco and British Gas have expressed an interest in providing finance for the green deal.

All Green Deal Plans will have to meet the flowing requirements;

• The expected financial savings must be equal to or greater than the costs attached to the energy bill, known as “the golden rule” of the Green Deal.

• The measures must be approved and the claimed bill savings must be those accredited through this process. (This may be do through an EPC)
• The measures installed must have been recommended for that property by an accredited, objective adviser who has carried out an assessment. (A pilot programme is currently being carried out to establish how best to accredit green deal assessors, in anticipation of the publication of the Green Deal Assessment Process by January 2012. The parties involved in this programme are: The UK Accreditation Service (UKAS), Department of Energy and Climate Change (DECC) and UK- based certification bodies).

• The measures must be installed by an accredited installer. (Accreditation for installers has not been confirmed but it is likely that it will build on the existing Competent Persons Scheme (CPS) structure. This scheme may first need to be accredited by UKAS.)

• For householders, the Green Deal provider must give appropriate advice within the terms of the  Consumer Credit Act and take account of the individual circumstances of the applicant.
• The Green Deal provider must have consent from all relevant parties, including the express consent of the current energy bill-payer.

• The presence of a Green Deal must be properly disclosed to subsequent bill payers (e.g. new owners or tenants) alongside energy performance information.

• Energy suppliers must collect the Green Deal charge and pass it on within the existing regulatory safeguards for collecting energy bill payments – including protections for vulnerable consumers.

The green deal differs from a loan in that; the charge is only paid whilst the benefits are enjoyed and the repayments are transferred in line with occupancy and tenure.

This scheme looks relatively simple for domestic buildings. The homeowner takes out a loan for the improvements. They pay for the investment out of the savings they make and if they move home, the new owners take over the loan. But how does the Green Deal benefit non-domestic building owners? See following blog for the answer……